Although many homebuyers out there are concerned about the market, they shouldn’t be. Here’s why.
If you’re a homebuyer, I’m sure you have some concerns about what’s going on in the market. It’s probably nothing new to you, but I think it’s something we should continually discuss in order to control the narrative. If you’re watching TV, you need to understand that their job is to sell excitement and ads. Therefore, they will always be talking about doom and gloom.
The same goes for social media. Lately, it’s been a lot of talk about the “impending recession” and the “looming housing crisis.” 57% of buyers believe that a recession will affect the housing market as bad as or worse than in 2007 and 2008. The data just doesn’t support that, but at the end of the day, that’s the mindset of the buyer community in general.
I like to operate with no emotion when it comes to making real estate decisions. If it makes sense for me financially, I want to put a plan together to make it happen. At the same time, buying a home can be a very emotional thing. If you can grasp what you’re getting into, you should be able to eliminate a lot of that fear.
Interest rates are still hovering at a very low level. The cost to buy money is historically low right now. Home prices are beginning to flatten out in some areas, drop in others, and rise in others. We’re seeing that a lot of buyers in this market are afraid to submit strong offers because they don’t want a recession to impact prices or their own financial situation. Uncertainty creates fear, which creates doubt, which creates paralysis. A lot of buyers right now who can afford to buy are afraid to do so.
If you’re thinking about buying, here’s my advice. First, connect with a great local real estate agent. If you’re in the Orange County area and you want to connect with me or my team, please send me an email or contact the office. I’d love to help you figure out a way to find out what you want. If you aren’t in the area but need a referral somewhere else, I can connect you with an agent in that market who will do just as good a job for you.
Next, you need to find a lender who can help you understand what it takes to buy a home in this market. At the end of the day, you need to understand what the lender is looking for. First, they’re looking at your credit, your income, and your assets. They want to make sure that you have the ability to pay the money back that you borrow and the collateral that you have.
If you do both of these things, regardless of whether the market goes up, down, or stays flat, owning a home will be one of the best long-term investments you’ll ever make. Even if the market goes down after you buy, it will come back up eventually. It’s not a flip-and-profit market. Knowledge is power.
If you have any questions for me about the home buying process or anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.