Prices still projected to rise – but stable for now
Recent real estate headlines might look a little bleak, with descriptions like “plunging” home prices and a “slumping” market. But are they really?
Let’s start with the market: Yes, it’s cooling slightly, but no – it’s not as extreme as some might suggest. We have to remember that the frenzied market of the past two years wasn’t typical or healthy.
The same goes for home prices. Yes – home prices are dropping off in some markets, especially those that saw drastic increases over the course of the pandemic. But prices on the whole are still projected to rise, and the median price in July was still up YoY.
Here at Morty, we’ve seen a number of buyers re-starting their homebuying journey successfully now that inventory levels are up and competition has cooled. If you paused your search last spring or summer, the current relative rate stability could provide a perfect opportunity to jump back in.
– Robert Heck, Vice President of Mortgage @ Morty
Reader question of the week
“We’re looking to move into a larger house as our family continues to grow. We didn’t buy during the pandemic with so much competition, but also regret not listing our home when demand was super high. What’s the right way to be thinking about this?” – Marissa, Riverside, CA
First off, try not to dwell in the past when it comes to whether or not you should’ve sold. There’s never a perfect time, and it’s natural to have hesitations about the uncertainty of the market. As for where things sit right now, I would think about whether you can still get the house you want at current rate levels and prices.
And while the market has cooled, it also helps buyers to avoid “settling” on a home that perhaps isn’t exactly what they want. This will also hopefully make it easier to buy and sell at the same time (assuming that is, in fact, your plan).
If you’re worried that rates may suddenly go back up, there are various extended rate lock options that can help you lock in the current rate for a fixed period of time, giving you a cushion during which you can find a home.