This is the big question on many buyer minds right now. While interest rates have risen considerably, this does not equate directly to it being a bad time to buy. It all depends on your circumstances and perspective.
If you are deciding to buy vs. rent, buying a home may still be a great option. Purchasing a home can have the advantage of providing security/stability and if financing your home, it will allow you to spend your monthly payment toward an investment you can see a return on in the future. You will also be creating an opportunity for building equity as home values increase over time. Markets will eternally fluctuate. If you buy smart (prioritizing your needs around the unchangeables of a home – location, layout, etc.) and intend to hold your investment for some time (5+ years), riding the waves of the market is much more feasible and most importantly, you can enjoy the home you love in the meantime.
Rates are high, that’s undeniable, but it’s also important to keep in mind that current rates are in keeping with historical averages. (Interest rates since 1971 average in the mid 7’s.)
The climbing interest rates have put downward pressure on pricing, which we see evidence of in increased opportunities at all price points. This can look like: more room to negotiate, an opportunity to come in closer to or below list, less aggressive terms, and with a decreased number of buyers in the market, less competition. However, there are still a good deal of motivated buyers in the market and we are still seeing competition for highly desirable homes.
Most homeowners refinance their home in the first 3-7 years. The rates today are not something you have to view as a marriage, but the home you buy is. Higher interest rates are just one factor in the process of deciding whether now is the right time to buy for you.
As Real Estate professionals, we aim to help each client elevate all questions by providing more perspective and information on the options available to them. The result is a more informed decision no matter the outcome and this team excels at supporting people in that process. We are here to help.