Interest rates have gone up over 5%, and houses are still in demand, so why are many saying that this could be a great time to buy a house? It is because we are starting to see a shift in the market from each house selling for more than the next with multiple offers and no contingencies to a more sane, balanced market. There is still a lot of competition for specific houses or condos, but recent homes have sold without competition and with some contingencies. This hasn't been common for around two years.
Homebuyer demand usually starts to heat up with the onset of spring but, according to Redfin, the opposite is happening. Mortgage rates climbing over 5% have caused affordability to worsen, so there are just not as many people looking for a new home. All of the indicators that Redfin looked at—such as showings, listings, and online views—are down from this winter. Unfortunately, there are still not enough houses coming on the market for the number of people that want to buy, so the market has not shifted to a buyers' market. However, it is certainly getting much calmer and more balanced.
Let us know if you are planning to buy or sell your home (or refinance) and we can help you find an excellent real estate agent and/or mortgage broker.