Why Now Might Be the Perfect Time to Buy a Home
Why Now Might Be the Perfect Time to Buy a Home: A Market Opportunity You Don’t Want to Miss
After months of sitting on the sidelines due to high mortgage rates and affordability concerns, many homebuyers are now seeing a window of opportunity. With mortgage rates trending downward, today's market is creating a sweet spot for buyers — but this favorable condition may not last long.
If you've been delaying your move, now might be the time to reconsider. Here’s why you shouldn’t wait too long to make your decision.
The Market’s Next Move: What Will Other Buyers Do?
As you weigh your options, ask yourself: what do you think other buyers will do? The truth is, if mortgage rates continue to decline, as experts predict, more buyers will re-enter the market. According to a Bankrate survey, over half of current homeowners would be motivated to buy if rates dip below 6%.
With rates already hovering in the low 6% range, we’re not far from that threshold. The bottom line? When rates fall into the 5% range, competition will increase, and that could push home prices higher. As Nadia Evangelou, Senior Economist at the National Association of Realtors (NAR), explains:
““The downside of increased demand is that it puts upward pressure on home prices as multiple buyers compete for a limited number of homes. In markets with ongoing housing shortages, this price increase can offset some of the affordability gains from lower mortgage rates.””
While waiting for rates to drop further might seem like a smart move, it could backfire if rising home prices outpace the benefits of lower interest rates.
Why Now is a Buyer’s Market Sweet Spot
Right now, you have a unique opportunity. Today’s market conditions offer less competition among buyers because many are still waiting on the sidelines. Fewer active buyers mean less competition for you.
Additionally, affordability has already improved. Recent declines in mortgage rates have made homeownership more accessible. According to Mike Simonsen, Founder of Altos Research, “Mortgage payments on the typical-price home are 7% lower than last year and are 13% lower than the peak in May 2024.”
At the same time, there’s more inventory available than we’ve seen in recent years. Ralph McLaughlin, Senior Economist at Realtor.com, points out:
"The number of homes actively for sale continues to be elevated compared with last year, growing by 35.8%. This is the 10th straight month of growth and now sits at the highest since May 2020."
This means you have more options to choose from than before, with fewer buyers competing for those homes.
Why Waiting Could End Up Costing You
Timing the real estate market is nearly impossible, and the longer you wait, the more likely it is that market conditions will shift — potentially not in your favor. Greg McBride, Chief Financial Analyst at Bankrate, warns:
"A further drop in mortgage rates could bring a surge of demand that makes it tougher to actually buy a house."
Bottom Line
If you’ve been waiting for the perfect time to buy, don’t let this opportunity pass you by. With fewer buyers in the market, more homes to choose from, and improving affordability, now is the time to act before competition heats up and prices rise. Let's connect today to make sure you take full advantage of this market sweet spot.
