Now May Be the Time!

If you attempted to purchase a home in the past year and were outbid or out priced, now may be your chance! The shifting market has created a window of opportunity for buyers because you’ll have less competition. There are 2 reasons for the recent market shift.

Rising Mortgage Rates

Rising mortgage rates have helped slow the sellers’ market frenzy the housing market has seen recently. This is an opening for potential buyers to jump into the market, while others may be a little hesitant because of a possible recession.

Mortgage rates are higher than they’ve been over the last 1-2 years, but that shouldn’t steer you away from purchasing a home! If you fall in love with a house, don’t let a higher mortgage rate discourage you from buying. I advise my clients to shop around for a mortgage and work with a few lenders to find the best deal possible (marry the house and date the rate!). Keep in mind, you’ll also be able to refinance down the road when interest rates are lower. Don’t let the home of your dreams slip away, because even with a higher interest rate, real estate is still a great investment!

I often ask potential renters what the interest rate is for a rental – 100%! Rental payments all go toward someone else’s investment. Not to mention the cost of rent in Texas has gone up significantly. For the average 1 bedroom apartment, rent is up 30%! Why rent when 100% of your payments can be put toward your own investment?

More Inventory

The number of homes for sale across the country has been steadily growing over the past 4 months, and that means more options for those thinking about buying a home. In College Station, active listings increased by 33.5% to 227 in July 2022. In Bryan, they increased by 21.3% to 188 in July 2022.

In the Bryan/College Station area new listings is up to 640 from 498 in June 2021.

Don’t get me wrong, sellers are still benefiting from the current market activity. The monthly average sales price for a home in the Bryan/College Station area has increased. It’s nearly 23% higher than it was this same time last year! However, that, coupled with increasing mortgage rates has led many to postpone or put off buying. Fewer buyers mean a decrease in the number of sales happening each month. Fewer sales mean more inventory.