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Whether Selling Or Buying, Now Is the Time To Enter The Market; Home Ownership Is Still The Best Path To Generational Wealth
By Kevin Joyce
Whether you are tracking the Housing Affordability Index published by the National Association of Realtors®, or the Home Buyer Index published by NBC News (with input from experts at the Federal Reserve), reality dictates that it is still difficult to buy a home.
The good news is that mortgage interest rates retreated slightly, but still hover around 6.85% on a 30-year fixed mortgage, and around 6% on a shorter-term, 15 year loan. Political pressure from the White House based on recent inflation data may bring rates down slightly, but economic realities always temper political expectations.
The advantages all seem to stack in favor of sellers, and now may be the best time to list your home for sale. Buyers are returning to the market after realizing that the wait for lower interest rates is folly – rates may come down (or go back up), but all expectations are that a major drop in mortgage interest rates is unlikely.
These rates likely reflect the “new normal” — at least for now.
Home ownership is still the best path to generational wealth. The bulk of new units coming on the market are largely rentals geared toward millennials and commuters or senior housing communities.
The median sales price for homes in Rockland County in May was $679,464. There is a dearth of homes on the market, only 953 available last month, with those homes sold within 36 days of listing. 44.7% of homes in Rockland County sold for over their listing prices (based on March closings).
Home values continue to increase, though not at the same pace as last year. And, while available inventory is trending up slightly, it is still low, and that low volume will likely influence the market and attract buyers to listed homes.
And, here’s the takeaway. Mortgage rates are unlikely to see a major decline, so the time to buy is now. With more homes on the market, and days spent unsold growing, the time to sell is now.
If you are planning on retiring soon and moving to a more affordable state, the time has never been better to list your house and sell. If you are in the market to buy, mortgage rates are unlikely to retreat dramatically. The time to start building equity in a home is now, knowing the option to refinance is always out there, and knowing that home prices are only likely to continue to rise.
And, as I’ve said before, in the words of Will Rogers: “Don’t wait to buy real estate, buy real estate and wait,” because owning a home is a keystone of wealth, providing both financial and emotional security.
