Is Now a Good Time to Buy?

With the media, there has been a considerable craze surrounding the topic of mortgage interest rate hikes that leave people wondering, “is now still a good time to buy a house?”. To which the resounding answer is YES! I’ll tell you why.

Less Competition for Buyers

The days of the cash buyer offering over asking are over. With the current market conditions home prices are down (compared to the same time last year), and inventory is staying on the market longer. This means your offer will hold more power in this market, and be more likely to stand out in front of the Seller. 

The same Buyer that would have paid $550,000 for a home in last year's market with a 3% mortgage interest rate, is now paying $400,000 for the same house at a higher interest rate… with an ultimately lower monthly mortgage payment today than in last year’s market.

Making that beautifully remodeled kitchen you wanted, magically more obtainable.

More Affordable

According to the Cromford Report, a journal that provides detailed reports and history of the Phoenix Market, this is an excellent time for first-time homebuyers. In their most recent monthly report, they state prices for starter homes have dropped a whopping 15% from May of last year to January 2023 (from $435K to $370K).

At an interest rate of 6%, based on the data from their report, that would save you at least $352 per month on your mortgage.

More Options from Sellers

Not only do you have your pick of the litter for your dream home, but Sellers are also motivated and more willing to work with Buyers. In this market, there is still a lot of positive equity captured in their homes and Sellers are listening.

On our most recent office call with Tina Tamboer, Senior Housing Analyst with The Cromford Report, she reported that 95% of buyer’s in the Phoenix market closed with seller concessions. Which can be used to buy down your mortgage rate. Yes, you heard that right! Can use concessions from the seller to make your interest rate lower and buy down your rate.

If you want to see what your home is worth click here.

Historically Low Interest Rates

Now for some who are worried about potentially missing their window, we are still in an era of historically low interest rates. Substantially below the height of 18.37% in 1981.

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Lenders are Offering More

Lastly, the mortgage world is evolving and becoming more flexible. Not only has Fannie Mae and Freddie Mac increased the conforming loan limits to keep up with the evolving market, but more lenders are incentivizing closing with credits, gift cards for home improvements and creating more programs for down payment assistance. 

Which means buyers who may not have qualified in the past may be able to buy a home now. You can learn more about what conforming loan limits have to do with you by reading this article.

At The Monaghan Group we are dedicated to keeping up with the latest news in the industry and providing the best quality of care to all our clients. If you would like to connect with one of our highly qualified agents, and are looking to buy or sell contact us by clicking here.

We can’t wait to help you find your dream home!