The Importance of Timing in the Housing Market
It's no secret that the housing market is on the rebound. After crashing a few years ago, the market has been steadily recovering, with prices slowly starting to rise again and inventory remaining low. So if you're thinking of buying or selling a home in the near future, it's important to be aware of these trends.
The Number of Houses Available for Sale is Expected to Rise
Experts predict that prices will continue to rise slowly throughout the remainder of the year, while inventory remains low. This means that if you're thinking of buying a home, it's important to act sooner rather than later. According to Realtor.com's Chief Economist, Danielle Hale:
“The gap between this year’s homes for sale and last year’s is one-fifth the size that it was at the beginning of the year. The catch up is likely to continue, . . . This growth will mean more options for shoppers than they’ve had in a while, even though inventory continues to lag pre-pandemic normal.”
- As a buyer, having more options is always a good thing. But don't wait too long – with prices continuing to rise, you don't want to miss out on a good deal.
- As a seller, your house may soon be in high demand. If you're thinking of putting your home on the market, now is a good time to do it. Inventory is low, so you're likely to get a good price for your home. And with more buyers looking to purchase homes, you're sure to find a buyer quickly.
Mortgage Rates are Likely to Continue to React to Inflationary Pressures
Mortgage rates will continue to rise, according to both experts and market conditions. First American's Odeta Kushi predicts that inflation will boost mortgage rates somewhat more moderately in the future.
“… ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come.”
- As a buyer, this means you may want to consider locking in your mortgage rate sooner rather than later. Learn how increasing mortgage rates affect your purchasing power by working with reputable real estate professionals, including your lender.
- As a seller, if you’re also buying your next home, the pressure is on to close on your new place before mortgage rates go up any higher. Talk to a trusted real estate professional and find out when is the best moment to move.
House Prices Are Expected To Rise Even Higher in the Future
The reason this is such an important time to buy or sell a house is that house prices are expected to continue rising. This is being driven by strong housing demand and a historically low inventory of houses for sale. Chief Economist, Lawrence Yun, of the National Association of Realtors (NAR), explains:
“Prices throughout the country have surged for the better part of two years, including in the first quarter of 2022. . . Given the extremely low inventory, we're unlikely to see price declines, but appreciation should slow in the coming months.”
- As a buyer, this trend may present a window of opportunity to buy a house before prices rise even higher. Of course, you’ll want to factor in mortgage rates and how they will affect your purchasing power when making your decision. However, it also provides you with a piece of mind that if you do buy a home, its value is likely to appreciate. That has made it historically a great investment and a strong hedge against inflation.
- As a seller, if you’re thinking of selling now or in the near future, this trend is good news for you. But don’t wait too long to list your house; the longer you wait, the more competition you may face from other sellers. Once again, get expert help in finding the right balance of ideal circumstances for both selling your current home and purchasing the next one.
Whether you're looking to buy or sell a home, it's important to be aware of what's going on in the market so you can make the most informed decision possible. Contact The Perreault Group to talk about your goals and what lies ahead so you can choose the best time to make a move.