By Scott Gaertner, Associate Broker
Navigating the real estate market often feels like a journey through a labyrinth of uncertainties, particularly in the current climate. Common advice suggests now is the worst time to buy a home. A recent headline was, “The housing market has never been this unaffordable for new buyers.” However, let’s explore a different perspective: this might be a golden opportunity.
Debunking the Timing Myth
Firstly, let’s address a common myth: the elusive ‘perfect’ time to buy a house. Savvy financial advisors often say, “You can’t time the market.” The most opportune moments, marked by the lowest prices and interest rates, are only evident in retrospect.
The Story of Jane and John Doe: A Case Study
Consider the example of Jane and John Doe. Confronted with high mortgage rates and soaring prices, they hesitated to buy. Yet, today’s market dynamics suggest a different strategy.
Reduced Competition: A Buyer’s Advantage
With mortgage rates around 8%, many are postponing their buying decisions, resulting in less competition. This environment contrasts sharply with the frenzied pandemic market, where houses sold rapidly, often without standard protections like inspections. This might be your chance to buy a home without the extreme pressures of recent years, such as having to fight through fierce competitions to beat multiple offers in bidding wars. Or waiving contingencies to buy the home “as is” or skipping inspections altogether – ultimately compromising on your dream home.
Expert Insights: A Unique Opportunity
Real estate experts, including Barbara Corcoran, emphasize the current market’s unique opportunities. They caution against waiting for a drop to the 2% to 3% rate range, as any future decrease may spur a demand surge, increasing prices. The key takeaway? Stay engaged in the market.
Perspectives from Industry Leaders
Lawrence Yun of the National Association of Realtors and Daryl Fairweather of Redfin recognize the potential for unique buying opportunities now. They advise against waiting for lower rates, as future decreases might be offset by rising prices due to increased demand.
Greater Choices, Better Opportunities
Currently, buyers have more options and face less pressure than in recent years. This might be your chance to buy a home without compromising on your dream in a bidding war.
The New Boomtown
After the 2008 crash, many wished they had bought more properties. Scottsdale North, reminiscent of 1950’s California, offers a similar opportunity. Its inviting climate and growing industries, despite water concerns, make it an ideal investment and living location. And it isn’t just semiconductor plants. Tons of high-tech and other industries are suddenly choosing our area in droves.
A Historical Viewpoint: Lessons from 1971
This brings us to an important historical perspective that underscores the entire argument. Consider the housing market in 1971, when the mortgage rate was 7.33%. Had you waited for rates to drop, you wouldn’t have bought until 1993 – that’s 22 years of waiting while real estate values soared. The lesson? Don’t wait to buy real estate. Buy real estate and wait. Marry the house, date the rate.
Take Action: The Time is Now
In summary, while the market might seem intimidating with its high rates and prices, it presents a unique opportunity. Even if you just want to upsize or downsize, now there is more choice. Don’t repeat past mistakes of hesitancy. If you’re considering entering the market, now could be the right time. We’re here to help you navigate these complexities. Give us a call, and let’s explore your options together.
Scott Gaertner is an Associate Broker with Keller Williams Arizona Realty who for the past 35+ years has helped more people find their lifestyle niche in the Scottsdale North area than anyone else. He also contributes his thoughts on the real estate market and lifestyle interests in the area and is the creator of ConnectingScottsdaleNorth.com. For additional info, visit scottgaertnergroup.com or call 480-634-5000.
