Tis the season for cool mornings, 30-degree fluctuations in temperature and overall, less hustle and bustle as we approach fall in Bend. The typical real estate busy season has come and gone, but I expect a busier fall and winter than we have seen in the last couple of years. A couple big factors are leading my line of thinking.
The first one: rates have come down from their peak over 1.5%, which places the average 30-year mortgage in the low 6% range, with additional cuts on the table at the September Federal Reserve Meeting scheduled for the 17th and 18th (right before my article deadline, thanks a lot Mr. Powell)! For first-time home buyers, there is the Oregon Bond Residential Rate Program that provides additional benefits for those who qualify. The two benefit options come in the form of either a "cash advantage," which gives the buyer a low rate and up to 3% of their loan amount in cash to reduce closing costs to buy the home. The other option gives the lowest rate possible for the buyer, which allows them the lowest possible monthly payment. Talk to your preferred local lender about these great opportunities to help Oregonians get into homeownership. If you've been waiting on the sidelines to get pre-approved, now would be a good time to start the process, so you can be in a position to take advantage of a potential rate cut and be ready to submit an offer with an actual pre-approval, which shows a seller you have not only the intention, but the ability to purchase the property.
Speaking of properties, has anyone noticed that over the last few months, inventory has come back? No, we have not entered a "buyers' market," but having four months of inventory is significantly more than we have seen in years. Two or three years ago, there was less than one month of inventory available at any given time, which helped create the ultra-competitive market we saw throughout the pandemic. This increase in inventory can create competition for sellers to lower listing prices, or even perhaps accept a lower offer than they may have wanted. So now we have lower rates and more inventory — what else could be in buyers' favors right now?
If you have followed my articles over the years, you've heard me talk about buying in the "off season." This is hardly a new idea, and certainly not mine, but buying in the fall and winter can be advantageous. The simple explanation is people that list or keep their home on the market after school has started are typically listing because they need to, whether to purchase their next home, or perhaps to move out of the area. Whatever the reason, a savvy buyer's agent can usually use this to their advantage and get clients a great deal.
Well, there you have it: a local real estate agent talking about how now is a great time to buy. If you're not convinced, I am not sure what else to say! Just kidding. All bias aside, those who have the ability to purchase a home should strongly consider talking with their trusted advisors (lenders, real estate agents, financial professionals, family, etc.) and seeing what kind of loan programs exist, along with a detailed personal budget, so you know the difference between what you can be approved for and what is comfortable from a budgeting standpoint. Please feel free to reach out to me with any of your real estate needs or any questions: [email protected].
