A year ago, interest rates were dropping to historic lows while limited inventory forced buyers into bidding wars. Now, as rates continue to climb, there seem to be fewer people shopping for homes and, thus, less demand.
Aside from the changes in interest rates and inventory, many people are on the fence about where to build or buy. With much of the population now teleworking, people have the option of buying homes further away from their offices.
With so much changing so quickly, many would-be buyers are afraid to commit to the purchase of a new home. However, there are costs associated with not buying, and we’re going to go over those here:
1. We don’t know what is going to happen to mortgage rates and home prices.
By waiting for rates to go back down, or until home prices level out, you are risking what you may eventually have to pay if rates and prices increase. Renting is still more expensive than buying, and you are not building equity.
2. There is less competition to buy new homes in the fall.
Now that school is back in session, many families are going to stay put, at least for the time being. Fewer buyers to compete with will help you when negotiating your contract. Additionally, if you are looking at new home construction, fall is a great time to get started! New homes can take months to build, so starting the process now will allow for a spring/summer move in. (Check out our floorplans if you’re considering this option!)
3. You may be able to afford more than you think.
Building your own brand new home is probably more attainable than you realize. We offer great incentives if you work with our preferred lenders, to include $10,000 in closing help.
If you’re ready to make your move before the holiday season, we have homes ready now and coming soon!
The best news of all is that the interest rate and monthly mortgage amount you lock in today doesn’t have to be forever. Getting into your dream home is never a bad investment, and when rates do drop again, you can refinance for a better rate.
If you have any questions about building your new home, or buying one that is already waiting for you, reach out to us today.