In real estate, waiting on the sidelines and being prepared to take advantage of the first opportunity is a common strategy that typically pays off. But what about the current market? Is it a wise move now that mortgage rates are falling and inventory is rising? Of course not! This is the best time for a buyer that we have seen. Do we have your attention? Then, proceed to the following report, explaining why buyers on the fence about making a move will be sorry later.
Running Seven-Day Average
Before continuing with the article, let’s review the market’s performance over the past seven days before December 12th. As the name suggests, the seven-day average is a market trend indicator for the previous seven days. It provides information on recent events, is an excellent short-term indicator, and detects trends earlier than annual reports.
New Listing — 502
Listing Sold — 660
Listing Pending — 895
Back on The Market — 119
List Price Reduced — 559
Listing Expired — 101
List price Increased — 17
Contingent — 24
Listing Cancelled — 236
As you can see above, 502 new homes entered the market the week before the 12th of this month, with 660 selling and 895 remaining pending. This demonstrates the fact that many buyers are actively purchasing homes. As we have previously stated, now is the ideal time for buyers to purchase a home rather than sit on the sidelines waiting for mortgage rates to drop even further. These metrics in the Washington luxury real estate market are some of the best we have seen in a very long time.
The secret to a thriving housing market is inventory. When available homes are abundant, buyers have more options and are more likely to find the perfect home. Pricing pressure decreases as inventory increases. This translates into more homes buyers can afford and more money for the homes sellers can fetch.
Homes stay on the market longer when there is a lot of inventory, which is another sign. This makes it possible for buyers to find more homes that meet their needs and removes the possibility of homes selling too quickly. Last but not least, a rise in supply gives buyers more chances to locate houses that suit their requirements. This means they can save money on home purchases and have a more enjoyable home-buying experience.
Decreasing Mortgage Rates
In the past month, the mortgage rates have gone from almost 7.5% to 6%. It may not seem like much, but buyers will benefit greatly from this. Higher interest rates make homes more affordable and encourage people to purchase real estate. Decreasing mortgage rates are better for buyers in the real estate market. There are a few reasons for this.
- Mortgage rates are a significant factor in purchasing a home. When rates are low, it makes it more affordable for potential buyers, especially those with low down payments.
- Lower mortgage rates make it easier for buyers to qualify for a loan. When rates are low, more people can get mortgages. This means more buyers can enter the market, and the competition between buyers will drive rates down even further.
- Lower rates help to stimulate the economy. When people have more money to spend, businesses have more customers, and the economy benefits. This is especially true in the housing market.
- Lower rates make it easier for veterans to buy homes. Veterans often have lower down payments than other buyers, and low rates significantly affect their ability to buy homes.
The Bottom Line
Finally, now is not the time to wait for the ideal opportunity to present itself; instead, now is the ideal time. Home prices are more affordable than ever, thanks to a significant rise in inventory and a steady decline in mortgage rates. The bottom line is that you should take advantage of this opportunity while there is little competition, because if you don’t, you will regret it when the market is flooded by buyers in the next quarter. Thank you for reading, and please spread the word about it to your friends who might find it useful.