There's no doubt that buying a home now is different than it was a couple of years ago, and the market shift has resulted in advantages for buyers today. Right now, there are specific reasons why this property market is appealing to consumers who have considered buying but have put off their search due to rising mortgage rates.

Buying a home in any market is a personal decision, and the best approach to making that decision is to educate yourself on the facts rather than following sensationalized headlines in today's news. The truth is that headlines do more to frighten buyers who are considering buying a property than they do to clarify what's going on in the real estate market.

Here are three reasons potential homebuyers should consider buying a home today.

1. More Homes Are for Sale Right Now

According to data from the National Association of Realtors (NAR), this year, the supply of homes for sale has grown significantly compared to where we started the year (see graph below):

This growth has happened for two reasons: homeowners are listing their homes for sale, and homes are staying on the market a bit longer as buyer demand has moderated in response to higher mortgage rates.

The good news is that greater inventory equals more options for you. When there are more homes on the market, there may be less competition from other buyers because the peak frenzy of fighting for the same home has also subsided.

2. Home Prices Are Not Projected To Crash

Experts do not expect that home prices will crash as they did in 2008. Instead, housing prices will moderate at varying levels based on the local market and factors such as supply and demand. As a result, some experts predict a modest appreciation while others predict a tiny depreciation (see graph below):

The forecast for price appreciation in 2023, when looking at the large picture and averaging the professional predictions, is basically flat or neutral. So, if you're apprehensive about buying a home because you're frightened that home values may plummet as they did in 2008, rest assured that's not what professional estimates tell us.

3. Mortgage Rates Have Risen, but They Will Come Down

While mortgage rates have risen dramatically this year, the rapid increases we’ve seen have moderated in recent weeks as early signs hint that inflation may be easing slightly. Where they’ll go from here largely depends on what happens next with inflation. If inflation does truly begin to cool, mortgage rates may come down as a result.

When that happens, expect more buyers to return to the market. That means more competition for you. Purchasing a home today, before more buyers return to the market, could put you one step ahead. As NAR Chief Economist Lawrence Yun puts it:

“The upcoming months should see a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.”

When mortgage rates come down, those waiting on the sidelines will jump back in. Your advantage is getting in before they do.

Bottom Line

If you’re thinking about buying a home, you should seriously consider the advantages today’s market offers. Let’s connect so you can make the dream of homeownership a reality.