That’s because expectations of a “gangbusters” spring market are growing. “Going back to maybe the first three to five months of the year, the narrative I was putting out there to people was… we’ve got limited supply,” he said. “Once demand goes up, so will prices. Would you rather buy a house at $500,000 today, at let’s say 7%, or buy that same house for $550,000 in a couple of years at 5.5%? It’s actually going to cost you more money with the latter versus the former.
“In the last three, four months, about 50% of my clients are already bringing that narrative to me, whether they find me on Google, whether they’re from an agent, a referral, a past client. They’re like, ‘Yeah, I just think now’s a good time. I think when rates do go down, there’s going to be a lot more competition’.”
New-home sales in the US dropped 4.7% in August but still exceeded economists’ expectations, reaching an annual rate of 716,000 units.
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— Mortgage Professional America Magazine (@MPAMagazineUS) September 25, 2024
How have hopeful buyers been assessing the market of recent months?
Those prospective buyers are wary of a resurgence of a COVID-type market, Del Preto added, when competition surged and many markets saw bidding wars push home prices through the roof.
Some were even prepared to move ahead with a purchase as early as this July, although they ultimately dissuaded for one reason or another. “They lost in a couple of offers, or the agent told them to sit tight,” he said, “maybe wait until after Labor Day for more inventory because there’s [currently] a lack.
“I don’t necessarily agree with that, because I think that they could have had some pretty good opportunities had they not waited. But I understand the emotional rollercoaster that is buying a house. If you lose out on multiple offers several times, that can be discouraging.”
Source: mpamag.com