You’re scrolling through home listings, dreaming about that perfect place. But then, you hear about high mortgage rates, rising prices, and a housing shortage. Should you pause your home-buying plans or dive in before things get worse? What’s really going on in the housing market? Let’s take a look.
Mortgage Rates: Not as Scary as They Sound
Yes, mortgage rates have been flirting with the 7% mark. It’s not exactly thrilling news, but let’s consider it. Back in the ’80s, mortgage rates hit an unbelievable 18.5%. Compared to that, today’s rates seem like a steal.
Experts predict rates will hover between 6% and 7%. The takeaway? If you’re waiting for rates to drop drastically, you might be waiting forever. Instead, focus on getting the best rate by improving your credit score and shopping for lenders.
According to AZ Rental Homes, a property manager can help you evaluate rental market trends in your area. If you’re buying as an investment, they’ll know whether the rental income can offset those interest rates.
Home Prices: Climbing, But Not Skyrocketing
Home prices are still rising, but not at the breakneck speed we saw in past years. In 2024, prices increased by about 3.3%, and experts say we might see a 2.4% increase in 2025. Translation? Houses aren’t getting cheaper, but the crazy bidding wars are cooling down.
If you find a home in your budget now, locking in a price might be more intelligent than waiting for a “perfect” time that never comes.
Housing Inventory: The Real Challenge
Here’s where things get tricky. There aren’t enough houses on the market. Depending on who you ask, the U.S. is short by 1.5 to 4.5 million homes. New construction is picking up, but it won’t magically fix the shortage overnight.
If you’re having trouble finding a home, consider these options:
- Expand your search area. Prices can drop significantly just a few miles outside your dream neighborhood.
- Look into new construction. Builders are offering incentives like rate buy-downs and closing cost assistance.
- Trend Property Management advises you to talk to a property manager as they often know of off-market rentals that might be available for sale.
Should You Buy Now or Wait?
This is where it gets personal. Forget the headlines for a moment and think: what’s your situation? Ask yourself:
- Can I afford the monthly payment? If a mortgage payment fits comfortably within your budget, rising home prices won’t matter as much.
- Do I plan to stay put for at least 5 years? Short-term homeownership can be risky. But if you’re in it for the long haul, market ups and downs will even.
- Is my income stable? A solid job and savings cushion make homeownership much easier to handle.
If you answered “yes” to these, then yes, it might be an excellent time for you to buy.
Where Do Property Managers Fit In?
A property manager can do a lot for you when buying a primary home or an investment property. They can:
- Help you analyze rental demand and pricing if considering renting out part of your home.
- Connect you with reliable maintenance professionals to keep your home in top shape.
- Manage tenants if you decide to turn your home into a rental.
The Bottom Line: Don’t Wait for a ‘Perfect’ Market
The housing market will never be 100% in your favor. Prices might drop, but mortgage rates could rise. Rates might fall, but inventory could shrink even more. The key is to buy when it makes sense for you.
Do your homework, get pre-approved, and consult professionals like real estate agents, lenders, and even property managers so you can make a smart decision.
Your Next Step: Check listings, run some numbers, and see if the right home is available. Who knows? You might find your dream home sooner.