Timing the market right, some buyers still lingering…This article from Realtor Magazine, 07/03/13, talks about home prices and mortgage rates increasing, have buyers missed their opportunity and home affordability…
Home prices and mortgage rates are rising, but there is still a crop of home buyers out there who are pondering whether now is the right time to buy a home or whether they should continue to wait a few more months.
Have they missed the boat completely, or could waiting pay off?
Mortgage rates have jumped more than half a percentage point in the last few weeks, with more jumps expected in the coming months. While rates are still low from a historical perspective, any rate increases can impact housing affordability.
However, rising interest rates will likely mean the pace at which home prices are rising will slow down, according to economists.
Home prices may fall slightly — up to 1 to 3 percent — as buyer demand dips seasonally, says senior vice president and chief economist for Equifax.
“But if interest rates jump another half percentage point, you may lose that price advantage to higher interest rates and monthly payments.”
While existing and new home sales have risen in recent months, they remain below their pre-recession peaks. Single-family housing starts are still about 60 percent below their pre-recession peak and existing-home sales are about 38 percent off their peak.
“Even with large percentage gains in housing measures, all major indices of housing market vitality point to a long recovery yet to come.”
References: realtor magazine, daily real estate news, the washington post
Donald Horne, Team Success Listing
Associate Broker for Coldwell Banker Shooltz Realty