The unprecedented mortgage rates below 3% spurred by the worldwide pandemic have faded into a distant memory leaving many buyers to wring their hands and lament that they “missed the boat.” Yes, that ship has sailed, but in its place is a new opportunity for Sonoma County buyers. In the past, because many homes received multiple offers, bidding wars erupted causing buyers to release contingencies and make potentially snap decisions regarding buying a home. Today the market is more favorable for buyers, giving them the opportunity to negotiate better terms for their home purchase. What can buyers get excited about in today’s market? 1. Many sellers are more flexible with terms and pricing. For example, FHA offers previously experienced some difficulty getting acccepted while competing in a blistering market. Now, Sellers are more open to different types of financing and some are even offering interest rate buydowns to qualified buyers.
2. Buyers are less likely to face bidding wars which allows them more time to make a decision to purchase a home AND greater flexibility in other terms and conditions such as contingency releases or rent back.
3. Paying rent is not pocketbook-friendly. Rents are rising at a staggering rate (up to 15% this year.) It’s wise to pay your OWN mortgage payment—not your landlord’s!
4. Fannie Mae predicts that interest rates will drop to 4.5% next year, giving current buyers an opportunity to refinance later for a better rate. Purchase your dream home now—without all the competition-and refinance in the future.
5. Remember that year or year, prices continue to rise. Now is a great time to build wealth through real estate. The Takeaway for Buyers It’s a great time to explore the housing market and to secure a great home without as much buyer competition. A savvy and qualified buyer has many interest rate options available. It may be the perfect time to move forward to home ownership.
Here's What Our Buyers are Saying
"We recommend them without reservation. Their knowledge, both of neighborhoods and the market, was spot on and their guidance was well reasoned and given without pressure. They were stellar and always went above and beyond for us. We found our dream home, but should we ever need to move again we'll be giving them a call."
--N. Fisette