Holding Out for a Crash? Don’t. We are at a unique point in time where opportunities exist whether buying or selling.
Still, there’s an idea among consumers that they should hold out for a crash in the real estate market: that suddenly homes are going to get drastically less expensive. But, this is unlikely!
Here in the Portland Metro and Willamette Valley, while velocity and overall real estate transactions continue to be slower than a year ago, the data IS NOT showing any hint of a crash. Real estate consumer sentiment is actually rising, homes that come to the market are still continuing to move, and homes are again selling for over list price.
Looking back, it appears Q4 of 2022 was the low for Market Confidence according to Freddie Mac, and this jumped 9% in Q1 2023.
But economic uncertainty in financial and tech markets brought mortgage rates down just in time for the spring homebuying season. Low inventory has kept most markets quite competitive, especially for first-time homebuyers.
(U.S. weekly averages as of Friday, 4/6/2023 source: Freddie Mac’s Primary Mortgage Market Survey®
30-Year Fixed @ 6.28% 15-Year Fixed @ 5.64% Prime Rate @ 8.00%
The U.S. Department of Veterans Affairs (VA) announced reduced funding fees for purchases, new construction, and cash-out refinance loans guaranteed by the VA that are closed on or after April 7, 2023. The fee reduction has little impact on payments, but it does decrease the upfront costs of VA loans, which continue to be one of the lowest-cost and most versatile loan options for qualified borrowers.
Whether buying or selling, it’s the perfect time to get strategic and we can help!