Why Now Is the Time to Buy: Housing Affordability in Focus

The Window of Opportunity

The combination of stabilizing mortgage rates and moderating home prices has created a unique window of opportunity for buyers. According to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), “While home prices are still higher than a year ago, the pace of growth is decelerating, and many markets are experiencing increased inventory.” This slowdown gives buyers more negotiating power than in previous years.

Moreover, Realtor.com reports that “mortgage rates are projected to dip slightly in 2024, but not significantly enough to offset potential price increases due to continued demand.” Waiting for the "perfect moment" could mean paying more in the long run.

The Cost of Waiting

If you’re holding off for a significant drop in prices or rates, consider the cost of inaction. A report by Freddie Mac highlights that “for every 1% increase in mortgage rates, a buyer’s purchasing power decreases by about 10%.” In other words, delaying your purchase until rates or prices change could drastically limit your options.

Additionally, rental costs continue to rise nationwide. According to the U.S. Census Bureau, “Every year from 2011 to 2019, real rent costs increased less than 3.0%. In 2022, after the peak of the COVID-19 pandemic, rent grew 1.0% — only one-fourth of the 2023 increase." This significant rise in rental costs underscores the financial benefits of transitioning to homeownership. Every month spent renting is a missed opportunity to build equity and benefit from tax advantages.

Affordability Programs and Local Opportunities

For first-time buyers or those concerned about upfront costs, there are numerous assistance programs available. Many states, including Maryland, offer down payment assistance and tax incentives to help ease the financial burden. Don’t let fear of market conditions hold you back from achieving your homeownership goals. As the saying goes, “The best time to buy real estate was 20 years ago. The second-best time is now.” With T​he Vince Caropreso ​Teamby your side, you’ll have access to expert guidance, local market insights, and a team that’s dedicated to your success.

Ready to Make Your Move?

Contact T​he Vince Caropres​o Team​ today to schedule a consultation. Whether you’re a first-time buyer or looking to upgrade, we’re here to help you seize the opportunities in today’s market. Let us turn your dream of homeownership into a reality. Contact us here to get started!