What Are You Waiting For? Buy or Not to Buy?

A real estate agent with a House model is talking to clients about buying home insurance
Should We Buy A House? 

Have any of your potential clients asked yourself the question above?

Possibly, you have been in a discussion with family, friends, or even other Realtor co-workers around that question. I am asked that question by at least 4 out of every 5 potential buying clients I speak with. My response – emphatically YES!!!

OK Greg – but why yes? Here goes:

  • Although list prices are softening, “home values are continuing to rise!!”
  • Here is a calculation for us:
    • Assume a 5% increase in home value (I’ll explain why that is conservative in a moment).
    • Your $350,000 home will gain $17,500 in equity gain in the next 12 months.
    • The difference between a 7% rate and 5% rate for a $350K loan is $444/month.
      • $444/month times 12 is $5,328.
    • Drum roll please:
      • If a new homeowner spends $5,328 over the next 12 months, they will gain $17,500 in equity!!!!
        • Who would NOT do the above??
  • Why are home values continuing to rise:
    • The simplest statement is – Demand for Housing!!
    • In September over 70% of homes sold in less than a month!!!
    • The “largest” buying group in our history is in the market to buy!
      • At the buying age right now, there are more Millennials & older Gen Z’s as a group by millions versus baby boomers (at their peak).
    • But where is this group now?
      • Many are on the sidelines because they are listening to the doomsayers in the news. I call this PEND-UP Demand.
    • What do ‘you’ think will happen when interest rates come down (and be certain they will).
      • This PEND-UP Demand will do what? 
        • Jump into the market.
      • It does not take a rocket scientist to figure out what will happen with home prices once the PEND-UP Demand is released.

So back to the original question – Is Now A Good Time To Buy? You know my response and the reasons why – what are your thoughts??

“Have a Great November!”

Link to our Instagram – homewiththejanickis

Gregory Janicki
Vice President
First Community Mortgage
NMLS: 960123

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