MINT HILL, NC – Are you considering going from renting to buying? Do you want to relocate and you need to buy a new home? The looming housing recession may have an impact on the type of home you buy and how you make your buying decision.
The super-hod housing market has cooled off quite a bit over the summer. This slowdown has impacted the economy in a negative way and may cause issues for some buyers. With home sales starting to fall, it’s already becoming clear that buyers have been impacted.
What’s Impacting Buyers the Most?
It’s not just things that impact the real estate market directly that are impacting buyers. Yes, the main factor causing some buyers to rethink whether they should buy or not is the higher interest rates. When the Fed raises rates, mortgage rates also go up. This makes it harder for buyers to afford the home they really want.
When mortgage rates go up, so does the monthly payment for a buyer. As a buyer, you have a choice, when this happens. You can choose to buy a home at a lower price range or you can wait to buy. Many buyers, right now, are waiting.
Along with the interest rates, buyers are impacted by the high prices at the gas pump and in the grocery stores. While food and gas prices might not be included in the inflation numbers put out by the government, they have a massive impact on everybody’s budget. Sure, gas prices are not averaging close to $5 a gallon anymore, but they are still nearly double since early 2020, and diesel prices have remained high. Food prices have gone up quite a bit, too, with some items doubling and others going up 20% or more.
When it comes to a potential buyer’s budget, they have to consider higher grocery prices and higher gas prices. Of course, if they are renting and their rent has gone up, that will also have an impact on how fast they can save for a down payment, too.
Buyers Might Need Patience Now
There are many things impacting buyers right now and will likely continue to impact buyers. With the Feds talking about raising rates again, it’s likely mortgage rates will go up again.
However, if buyers are patient, there are still deals to be found and homes to be purchased. Sellers are not seeing the multiple offer situations and the lines out the door for showings they were seeing last year. It’s likely, that the slowdown in the housing market will likely lead to more and more sellers dropping prices.
As a buyer, the housing market recession has a pretty big impact on you, but it also impacts the sellers. You might find a great deal today that fits your budget or you might have to be patient. The good news is, that you might score an even better deal if you wait for prices to come down in your local area.
I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me. I will help you make the right move! Anna Granger (704) 650-5707 | email@example.com | www.1stchoicepropertiesinc.com