In 2021, buyer demand increased due in large part to low interest rates. That trend was reversed in the first half of 2022, as home loan rates spiked through mid-June. However, with rates improving a bit from the peaks of June, along with an uptick in inventory in many areas and price cuts now the norm, it is an excellent time to find a home and pay less for it.
Homeownership carries many benefits. The first of which is it’s ability to generate home equity and wealth over time. Home prices climb in mid-single digits on average in the long-term and possibly climb quicker during bouts of inflation like we are seeing now.
If you’re a first-time homebuyer and qualify for a mortgage, many real estate experts say it’s a good time to buy. The reason for this is that many entry-level homes exceed the supply. Homebuilders and developers are offering homes at a discounted price and/or including extras and options.
On the flip side, it’s also a good time to sell your home – rates have pulled back and the labor market remains strong. If you’re considering selling or purchasing a home, reach out to a trusted real estate professional to learn more about your options.
Sources: CNBC.com, Fool.com, Realtor.com, Familyhandyman.com, Housingwire.com
We are ready to help you find the best possible mortgage solution for your situation. Contact Sheila Siegel at Synergy Financial Group today.
