As we head into the fourth quarter of 2021, the peak home buying season is wrapping up, and most of the bidding wars have subsided. No, that doesn’t mean you can take the next three months off, unless you don’t need a paycheck.
But it might signal the green light for your clients who were waiting to buy until demand decreased, prices became a little more reasonable, or their credit score improved. Bidding wars and the frustration and roller coaster of emotions that come with them aren’t for every house hunter.
Although some of your clients told you they’d be ready to start looking once the craziness died down, they may have had a change of heart. That means they need a little pep talk from you to get them motivated again.
We’re here to help. Here are some reasons why your clients should dive back into the buyers’ market this fall and winter.
Higher home inventory
While the summer home buying season was defined by low supply and intense buyer competition, that’s starting to change as 2021 winds down. Zillow reports that home inventory rose by more than 3 percent from May to June. That was the second straight month of that trend, and it has continued heading into fall.
With more homes to choose from, your client can take a little more time to ensure they get just the right home for their tastes and budget. That makes the home buying experience a lot more fun.
Less buying competition
Summer’s over, and school’s back in session. So would-be buyers have already started to settle down as the colder months approach. Now’s the chance for your clients to strike.
Even though home prices might still be higher than in past years, your clients may still be able to get more home than they think because of the decreased competition. It sure beats a bidding war when offers can routinely go above and beyond sellers’ asking prices.
Low interest rates
While interest rates have nudged up from historic lows during the height of the pandemic, they are still attractively low. That’s a great incentive for your clients to get back into the home buying market.
Housing economists are divided on how high mortgage rates will go before the end of 2021. Fannie Mae is holding firm to its prediction of average 30-year rates as low as 2.90 percent through the end of this year.
Freddie Mac is forecasting an increase to 3.40 percent, while the average agency prediction for 30-year mortgage rates is 3.14 percent.
Even at the highest projected numbers, it’s an excellent time to encourage your clients to buy. The rates will rise eventually – maybe even in 2022 – so they should now take advantage of the favorable rates now.
For more information about how we can help your client get back into the home buying market, contact a member of our team.
Will 2022 be a good (Easier) year to buy a house in the U.S.? LoanLimits.org. (2021, August 6). Retrieved September 28, 2021, from http://www.loanlimits.org/easier-to-buy-a-house-in-2022/.
Lucas, T. (2021, September 24). Mortgage rates FORECAST: Will rates go down In October? Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports. Retrieved September 28, 2021, from https://themortgagereports.com/32667/mortgage-rates-forecast-fha-va-usda-conventional.