Should I Buy a Home Now? Weighing the Risks and Benefits in the Current Real Estate Market

Dane Balsmann with Guaranteed Rate Mortgage and Wendy Flynn with RE/MAX Plus Realty discuss current real estate market conditions and what that means to prospective buyers who are weighing their options.

Buyers are notably attentive to housing prices and climbing interest rates, particularly in light of sensationalized news reporting. While the rates have climbed faster this year than in decades prior, there are still ways for savvy buyers to seize purchasing opportunities.

Experts are saying the worst may be over since the Fed's mission to curb inflation by raising rates is beginning to work. As a pending recession seems near, there is also speculation that rates may begin to drop. Historically, recessions have brought about decreasing rates. If that should happen, buyers may be able to purchase while home prices are on a downward trend, then refinance when rates fall.

Many home buyers have been priced out, or pushed out, of the real estate market over the last couple of years. Bidding wars were commonplace, and sellers gave preference to cash/conventional buyers who often waived inspections and appraisal contingencies. Today, there is a significant uptick in price reductions and days on market. Buyers are finally able to secure a home for less, keep protective contingencies in place, and often even receive seller-paid closing costs assistance. When rates start to drop off again, it only stands to reason that increased demand will, once again, result in stiffer competition.

To complicate matters, tenants are being asked to pay skyrocketing rents. Many renters don't realize that there are no/low down payment options available to them. Unfortunately, many people still hold to the misconception that a 20% down payment is required. Moreover, with seller willingness to help with buyer closing costs and down payment assistance programs, today's buyers can get into a new home of their very own for little to no upfront monetary investment.

There is no doubt that it just makes sense for some people to wait to buy, but having a better understanding of your options is half the battle. For a no-pressure conversation about your situation, call Dane at 573-450-8340 or Wendy at 573-380-0553.

Dane Balsmann
573-450-8340
Guaranteed Rate
NMLS# 1404641
[email protected]

Wendy Flynn
573-380-0553
RE/MAX Plus Realty
MO 2016009432
[email protected]

00:00 - Buyers Are Particularly Concerned About Prices and Interest Rates
00:32 - Is the Real Estate Market As Bad As Headlines Indicate?
01:10 - What Is the Reason for Increased Mortgage Rates?
02:10 - What Are the Implications of a Possible Recession?
03:15 - Home Buyer Opportunities Now
07:02 - No and Low Down Payment Options Are Widely Available
07:42 - Invitation to Buyers: Honest Case-by-Case Discussion of Options
09:02 - Invitation for Questions/Comments