The real estate market for the past couple of years or so has been skewed toward sellers with buyers having the tougher time of it. Low inventory, higher home prices, low mortgage rates, and very stiff buyer competition have all conspired to bring about these conditions. Today, broader economic conditions are changing the real estate market, but there is still conflicting advice about whether now is a good time to buy or not. So let’s dig in and see how the Harford County real estate market is looking for home buyers this summer.
Mortgage Interest Rates
One thing home buyers can look for this summer in the Harford County real estate market is either rising interest rates or rates that remain relatively high compared to the recent past.
The consensus among industry experts is that mortgage interest rates will hover right around current levels. That is, rates for 30-year fixed-rate loans will be around 7.0% and for 16-year fixed-rate loans about 6.0%. But if inflation continues on its slightly downward trajectory, the Federal Reserve is likely to cease raising rates. If these conditions obtain, interest rates could settle in somewhere around 6.0%.
In any case, home buyers will be facing higher mortgage interest rates than they did a short time ago when rates hit near historic lows.
Home Inventory
The real estate market has been plagued by low inventory for a while now. And that put sellers in the driver’s seat because buyers were competing fiercely for the few available for-sale homes.
This trend is beginning to reverse, and home buyers can expect it to continue on the current reversal course. Still, though, the number of active listings remains lower than the pre-2022 levels. The upshot is that home buyers still don’t have as many for-sale homes to choose from as they would like with inventory below normal.
And this means that if you’re a buyer in Harford County, you will still have to be on your toes, prepared and ready to snatch up a deal when you find it. You also have to sacrifice some of your like-to-haves in order to get the must-haves. And you certainly need to get pre-approved for a mortgage before you begin home shopping.
To discover more about inventory levels in your market, consult a Harford County agent. Just call 443-616-5486.
Home Prices/Values
Another of the real estate market trends only slowly reversing has to do with home prices and values. Basically, home prices are still increasing, but the rate of increase has slowed some.
Prices aren’t going to drop anytime soon because inventory is still below normal and buyer demand is still fairly high. And this means that it’s still a seller’s market, but buyers are in a better position than they were.
As a buyer, then, you’ll absolutely have to be certain of what you can afford. (It’s a good idea to make sure your monthly mortgage payment is no more than 25% of your monthly take-home pay.) Then you need to home shop carefully and patiently till you find a home that fits within your budget.
Real Estate Services
Home buyers this summer can also expect online services in the real estate market to experience significant growth. Here’s what you’ll see more of . . .
- Virtual agents – These are online hybrid services that offer some of the services you’d get working with a traditional agent. It costs less, but you don’t get everything you’d get with a real agent.
- Third-party buyers – These are companies online that buy homes to re-sell them as soon as possible. It definitely offers little hassle and quick sale, but you’ll likely sell for less and there are often hidden fees.
- Mobile/online closings – Chiefly a child of the pandemic, mobile or online closings provide a way to close a real estate transaction without people having to be present in person.
What It Means for Buyers
Now, what does all this mean for you as a Harford County home buyer? According to industry pros, just this: you shouldn’t try to find the perfect time to buy a home; rather, you should buy when you’re ready.
The real estate market always has and always will go through cycles. But trying to wait it out for the perfect time in the cycle to buy is often a futile endeavor. If you are ready and able to buy, then that’s the time to do it.
How to Navigate Summer’s Real Estate Market
As should be evident, sellers are still at a disadvantage. That’s why it’s so important to work closely with an experienced Harford County agent. If you’re ready to buy, but are worried about the current real estate market, then contact us today at 443-616-5486.