Last year at about this time, we wrote a blog stating that it was a near-perfect time to buy a home. Looking back, we were spot on at the time. The last thing we expected was that one year later, even better conditions would be prevalent. “Better” is a tough thing to prove, but conditions are at least as favorable for home-buyers now, and buyers should pay attention. We have included some of last year’s highlights, with our updated comments supporting the premise. From 2019, here’s what we said:
“As young people, Baby Boomers often opined that if we could ever just lock in our parents’ mortgage rates, life would be grand. After all, our Moms and Dads only paid around 5% for fixed 30-year mortgages. A few decades ago, Baby Boomers were being charged up to and including 18% for mortgages. We all “knew” that we would never be so fortunate as to see those old 5% rates.”
By last March (2019), our old assumptions had been proven incorrect, because mortgage rates had actually dropped well below 5%. Today, a comprehensive look at the housing market elicits an unexpected conclusion; now could be an even better “buyer’s market.” There are, however, some limitations.
The national inventory of homes for sale is currently tight. Price appreciation generally results from scarcity, so conditions are likely to change relatively soon. Current conditions are providing an opening for anyone thinking of selling and/or buying a new or used home at a reasonable price, and with excellent financing terms. It is a "Goldilocks" market for both buyers and sellers. Not too hot, and not too cold; it is "just right."
Anyone contemplating a home purchase, or a home sale and purchase, should act quickly. Market conditions are virtually unprecedented in our lifetimes. No reasonable person would expect this situation to be anything other than short-lived. In our opinion, conditions today present a unique opportunity for those who have been contemplating real estate transactions.
Van Wie Financial is not a licensed real estate brokerage, and our expectations are based solely on experience, coupled with knowledge of financial markets and interest rates. Consult a real estate professional if you are contemplating a change in your housing situation.
Van Wie Financial is fee-only. For a reason.