The Age Old Question-Do I Buy Now or Wait Until Pricing Drops?
DON'T CLICK OFF TOO SOON, I AM NOT GOING TO BLABBER ABOUT "MARRYING THE HOUSE AND DATING THE RATE". I WOULDN'T DARE BE THAT CLICHE. LET'S BE HONEST, THAT SAYING LEAVES A LOT TO BE DESIRED....
As tempting as it is to anticipate a pending crash in hopes to get a screaming deal. The reality of that happening is quite low, at least where we are positioned in Atlanta. A correction will happen, matter of fact it already has. Most markets around the U.S. are down anywhere from 6-10% off peak pricing. This is primarily because of interest rates leading to lower buyer demand. So, the question remains, can the market drop more? OF COURSE, IT CAN. However, If inflation keeps coming in lower and lower, the FED will most likely slow down its rate hikes, potentially marking a peak for interest rates. If this happens, I believe we will quickly market a floor for real estate pricing. In contrast, there is the potential that inflation doesn't peak yet, rates will go higher, and pricing could inflect down a little further. This will also vary depending on where you live. Additionally, it is important to under that seasonality is very prevalent in demand and pricing for real estate.
Ex: Atlanta has a very strong local economy, stable employment, big tech, etc.; We have held our footing much more than a Zoom-town like Boise, Idaho. *If you want more detail on this outlook, check out our prior blog posts*
So what do I do then?
Unfortunately, It seems I have lost my magic bottle for this one... All jokes aside, this is not a decision I can make for you.
You need to gauge your outlook-Am I going to move again next year, or are we planning to stay here for 3-5. Do you believe that the Atlanta area will continue to grow and flourish like it has for decades. Would I be willing to potentially buy a home that needs some cosmetic updating, insulating my purchase with upside equity.
I would say now is definitely a better time to be a buyer then it was back in Q1. I am seeing many buyers get discounts off the purchase price, closing costs paid for, interest rate buy-downs, etc. Considering inventory does not seem to be exploding the way some anticipated- If rates drop more in the near future, demand will likely pick up even more. I think between now and Q1 23' is a great time to scout out good deals in your market. Take advantage of the situation that is happening right now if you can.
As always, if you want my thoughts on anything- give me a call, Id love to see how I can help. 404-680-0710
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