“I believe that beginning with next month’s CPI Report (May 10th) and continuing through the summer, inflation will trend downward, only at a much faster pace. And while it may seem counter-intuitive, if you are in the market to buy a home, we suggest using today’s potentially higher interest rates to negotiate a discount from sellers, and when interest rates come down, gain valuable appreciation, and refinance your home.
It’s important to remember that US home prices increased 40% between 2020-2022, and a whopping 116% over the last decade! The truth is US Housing inventory remains scarce and the demand for homes grows daily. Which explains why US home prices have only decreased 3% since their peak in June of 2022. But the downward trend in values has come to an end.
The latest sales data from Corelogic and Black Knight (February 2023), show an increase in aggregate US home values. And this is taking place when mortgage interest rates are at elevated levels. Imagine the competition from pent-up demand when interest rates drop, affordability improves, and more home buyers enter the marketplace. Home appreciation, while modest, should be strong in the year ahead. And this is why I believe the time to buy is now.
Today’s market is still competitive, and you must be pre-approved before you make an offer. “
Taking that directly from my #1 go-to lender referral, Tim Wood at Cross Country Mortgage.
Let us help you get in while the market is soft (in places) and before competition again goes off the charts, because you know it will.