The real estate market is in transition. I don’t think anyone would argue with that statement. So now that it is in transition, should buyers be moving forward with a home purchase? Is this a good time to buy a Summit County home? There are several factors to consider before answering this question. Home prices, interest rates, and financial health should all be considered.
Home prices shot up during the pandemic. I am still amazed at how much homes in Summit County are selling for. We are seeing a lot of properties come on the market every week and a lot of price reductions for homes that are for sale now. In the last 7 days there have been 27 new residential listings in Summit County and 50 price decreases. Even with all those price decreases, we are not seeing sale prices coming down across the board. Prices are flattening, but not decreasing. Inventory will have to build substantially before it puts enough pressure on pricing to see a decline in property values. This may very well be the peak in home prices. We have had peaks in the past. Looking back, most people would be thrilled to have bought at those past peak prices.
A buyer that is planning to get a loan for a Summit County home purchase probably knows rates have gone up significantly in the first few months of 2022. The Federal Reserve is expected to raise interest rates several more times this year. Those increases will likely continue to push up mortgage rates throughout this year. Buyers that plan to buy a Summit County home this year may be seeing the best interest rates of the year right now. To add to that, rates really aren’t that bad right now. In fact, I was just talking to a local mortgage broker and they have 30 year fixed rate jumbo loans below 5% and adjustable rate mortgages for even less. Of course many things impact individual mortgage rates but it is still worth it to talk to some local lenders and get real information about rates.
Financial health refers to the economy in general as well as an individual’s personal finances. If a buyer is comfortable with their personal finances, it may make no difference what is happening in the overall economy. On the other hand, if that comfort level is low, an economic downturn could impact a buyer’s financial health making home buying in this economic uncertainty less desirable. In that case, this may not be a good time to buy a home. Everyone wants to say they bought low and sold high. However, there is absolutely nothing wrong with buying high and selling higher.
Ultimately, no one knows what the future holds. All we can do is make the best decisions we can based on the facts at hand. A buyer should evaluate their own situation and be comfortable with it. In general, over the long term, housing values go up. If you are in it for the long term, it is almost always a good time to buy a Summit County home.