Key takeaways:
- If you have the means, now may be a good time to buy a house.
- Producer US domestic sales price reached $435,000 in October, following 16 months of year-over-year gains.
- Average daily mortgage rates are up 7% and unchanged since September, but still below 2023 levels.
- Deflation to him be encouraged the Fed to cut interest rates twice in two months, but Trump’s policy proposals to bring uncertainty.
- However, the market is still hot: Many buyers have entered the market since the election, not afraid with high prices, rising prices, and industry changes.
As the election year draws to a close, many homebuyers are left wondering if now is the best time to enter the market. The houses are still there they are not very affordable most of the country, after all, is also showing signs of improvement. Given these challenges, it is natural to wonder if now is the right time to adopt honey.
Whether or not it’s a good time to buy a house comes down to when it’s a good time yours to buying a house. Let’s dive deep into the market and uncover trends that can help you answer, “Should I buy a house now or wait?”
>> Read: Am I Ready to Buy a Home? 8 Questions to Help You Decide
What is happening in the housing market?
Here are some important market trends to keep an eye on and help you make an informed home buying choice.
Housing prices: Sky-high and still rising
The US median sales price currently sits at $435,000just shy of the all-time record. House prices have posted year-on-year gains for 16 months and are more than 45% higher than they were in 2020.
A; and, the median monthly mortgage payment it sits at around $2,600, a slight drop from last year.
Housing prices: High and flexible
30-year adjusted daily average housing prices changed to -7.08% – below April’s highs but above September’s recent lows. Prices are rising primarily due to faster-than-expected job growth and election jitters, even two interest rate cuts from the Fed.
The reduction is likely to be 200 bps (2%) by the end of 2025, but mortgage rates are still likely to dip below 6% in 2025.
Giving up: It has a limit
The supply months range between 3 and 4 months over the past yearwhich is close to the balanced market. A supply of less than 4 months usually benefits sellers; more than 4 months are generally in favor of consumers.
New construction has slowed in recent months. This is because of more creativity is coming to the market and builders have slowed down since the pandemic. New houses were started down 6.9% in October.
Need: Coming back slowly
Pending US home sales are rising, too Redfin’s Homebuyer Demand Index hit its highest level in nearly a year and a half.
Other metrics are less convincing, however, such as new listings remaining low and the share of sales under contract falling within two weeks.
Inflation: Falling, but with an uncertain future
Thanks in part to the Fed hard cracking about pandemic-related inflation, inflation to him it has fallen close to their benchmark target of 2%.. This is a major development from meteoric Post-pandemic inflation, up 9.1% in July 2022.
Inflation means less spending on goods and services, which can help consumers’ budgets.
Importantly though, experts believe Trump’s policies may rein in inflation, so it’s unclear what’s next.
>> Read: Inflation and Home Prices: What Home Buyers, Sellers, and Renters Need to Know
Real estate agents must be ready to compete
The recent drop in mortgage rates is setting the stage for more buyers entering the market, which means more competition for listings.
This is because house hunters are not intimidated by high mortgage rates waiting on the sidelines years, especially as inventories flagged due to retailers wanting to hold on to their pandemic-era levels (lock effect). Now that prices are falling, many buyers are deciding to enter the market.
Will mortgage rates continue to decline in 2024?
Today’s housing prices reflect what investors think the Fed will do. Investors believe the Fed is committed to reducing inflation and expect mortgage rates to remain firm through the end of the year. Economists’ expectations are very dim for the foreseeable future, however, thanks to Trump policy uncertainty.
In other words, economists don’t expect mortgage rates to drop much lower than they already have, because rates are already priced in from the recently announced interest rate cuts. Things like inflation and employment data can change experts’ views, however.
Should you lock in your mortgage rate today?
If you have the means, now is a good time to be locking in a low mortgage rate. Prices haven’t been this low in almost two years.
Low rates mean you can get more loans or enjoy lower payments within your current budget. If the prices still sound too high, you can shop your mortgage rateagain. Cash buyers hoping to avoid a home loan altogether should also act now to avoid potential rate hikes as competition heats up.
So, now is a good time to buy a house?
If you have the means and are ready to own a home, now is a good time to buy a house. Waiting for prices to drop leaves you vulnerable to increased competition among buyers and subsequent price increases from sellers. Prices are lower than last year and on sale I’m still lazy but the betterso now may be the time to act.
Buying a house now means you are increasing your investment opportunities. Low rates save you money over the course of your loan and mean more to you mortgage payments can go towards creating equality.
It is worth noting, however, that the market has been topsy-turvy recently. For example, higher home prices typically lower home prices, but have had the opposite effect over the past two years. Also, reduced inventory often leads to more competition, but prices are too high for many buyers to afford, causing some homes to remain unsold and others to sell within days.
It is important to prepare yourself for any surprises that may come.
>> Read: How to Buy a House: 10 Step Guide to Buying a Home
Final thoughts
If you are in the housing market and feared at high levels, now is the time to be contact the agent and start your home search. Prices will likely remain stable for the foreseeable future, but buyers are becoming restless, which is helping the market gain momentum. The longer you wait, the more competition you will see.
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