Homebuyers: Are You on the Fence About Buying Now?

Many homebuyers may be on the fence about buying a home right now. They may view current mortgage interest rates as too high. In actuality, current rates are right around historic averages. Rates may settle down to around 6.0% in 2025, but economists believe the days of 3.5% to 4.5% are unlikely to ever return, barring another global pandemic or catastrophe.

Homebuyers who are sitting on the fence waiting for rates to drop significantly, are missing out on fantastic opportunities right now.

Here are a few things to consider:

• Currently, there is less buyer competition. Sellers are likely to accept or negotiate buyers’ offers. When interest rates drop, buyer competition will increase, and sellers will choose the “highest and best” offer, driving home prices up as buyers compete to win.
• Temporary rate buydowns are available. Ask me how a 2-1 or 1-0 rate buydown works!
• Loan programs and lender incentives are available.
• Many sellers are offering concessions, ie, a credit to the buyer at closing, which can be used toward closing costs or rate buydown, as they watch their home stay on the market longer than makes them comfortable.
• Many sellers are accepting low due diligence fees and under asking price offers. When buyer competition heats up, due diligence fees and offer prices increase, as buyers compete to win.
• Many builders are offering HUGE incentives on inventory homes that close by the end of the year. HUGE savings for buyers!
• Resale home inventory has improved this year. Buyers are more likely to find a home that more closely matches what they’re looking for!

The question I often get is, “Is now a good time to buy?” The real question ought to be, “Is now a good time to own?”

The average sales price was up 2.9% in October 2024 over October 2023 in the entire Triangle region. Raleigh is up 3.4%, while Cary/Morrisville/Apex is up 5.6%! Year over year appreciation in our area continues to grow! The longer buyers sit on the fence, the higher home prices will increase.

Let’s take a closer look at the cost of waiting.

Contact me to learn more!