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??