Monday, February 4, 2019 / by Teresa McCormick
If you've been looking to buy a home for a while, you'll want to read this email.
You see, for several years now, we've been in a definite seller's market.
Home prices kept rising. Demand was high. Bidding wars were common.
But now, there are clear signs that the housing boom is coming to an end.
Home price growth is slowing; it’s currently the lowest it’s been in two years. Price cuts are becoming increasingly common, as an average of 17% of home listings saw their price decrease—a four-year high. Mortgage applications are down over 16% from a year ago and homes appear to be selling more slowly than at the start of the year.
In other words, the tide is turning, and we seem to be entering a buyer's market.
So, if you’ve been looking to buy a home for a while, should you act now or should you hold out for conditions to become even more favorable?
Personally don’t believe you should wait for the market to shift any more. Instead, the time to act is now. Here are two reasons why:
The first reason is the ongoing rise in mortgage rates.
Mortgage rates have increased by about 1% over the last year, and they now stand at the highest level since 2011. The thing is, this trend is likely to continue, with mortgage rates expected to increase through 2019 as well.
Of course, more expensive mortgage rates could easily cancel out—or even overwhelm—any decrease in home prices. That's why it makes sense to move now, while mortgage rates are still relatively low.
The second reason to act is the time of the year.
Home prices in January are typically the lowest they will be all year. January is also the best time of year if you want to avoid competition, which can drive prices up and make it harder to get your dream home.
Combine this with the way mortgage rates are moving, and now might actually be an optimal moment to start looking for a new home. The situation could be much less favorable in six months to a year down the line.
The good news is, several beautiful and surprisingly affordable homes have recently come on the Las Vegas market. To check them out, take a look at this complete listing of Las Vegas homes:
Click here for all available Las Vegas homes for sale
And if you have any questions about the current real estate market or you're ready to start seriously searching for homes, give me a call. I'm here to help.