Spivey Realty Group

Now’s not the time to buy, or is it?


Interest rates are close to the highest they’ve been in a decade. Before buy downs (when you pay extra cash to get the rate lower), your rate might hover at our around 6.5% as of this writing (early Jan 2023). Compared to the past several years of 3-4%, that increase in interest rate, all other variables the same, results in less affordability when purchasing – less purchase power – to get the home you want.

But all variables don’t remain the same. interest rates are higher than they’ve been in years, but increased inventory in Grays Harbor – and sellers reaching for the sky (the sky of real estate prices during COVID) – presents a unique opportunity for today’s buyers. First, increased inventory means more houses to choose from, right? And generally speaking, more houses means that – over time – prices will rise more slowly, stabilize or even fall some because the supply (houses) starts to catch up with or surpass the demand (ready and able buyers). Couple the increase in inventory with the uptick in interest rates and we have the perfect storm that has lead to the slowing of real estate buying in the single-family sector. All while sellers continue – on average – to ask for the moon in their prices, many seemingly oblivious (or ignoring) the slowing market.

And that’s what most buyers have done – put a pause on their buying plans until “interest rates come down and/or prices respond (aka lower) based on reduction on buyer demand.” And that’s my point – you don’t want to be like most buyers. To truly get a good deal or to get ahead in life –

you should do what others AREN’T doing now so that you can live different than others in the future, as Dave Ramsey would say.

Dave ramsey

Well, Kevin, what does that mean? Speak plainly, please. OK, on it – 

At this very moment we have a trend of slightly lowering interest rates and, according to industry pros, future lowering in the early months of 2023. That means more buyers will start to buy in the months ahead. Sellers, on the other hand, are increasingly learning that they can’t ask for crazy high prices so they are adjusting their list prices to be within present market value, which bodes well for those same buyers who will experience lower rates than we’ve had the past six months. 

But in the middle of all of this – right now – buyers can take advantage of a unique opportunity. There are many houses on the market where a seller is “testing the waters” in some way and has experienced limited or no activity in the 30-90 days on market. That’s jarring for a seller and sellers become increasingly anxious to sell the longer they sit on market. If you, as a buyer, swoop in as the only buyer they’ve had – you’re in a great position to be in the position of power and get an awesome deal on the home. Think – large price reduction and/or massive closing cost assistance. AND you can take advantage of 2-1 or 3-2-1 loan programs where you reduce your current interest rate by 2-3 points (from 6.5 to 3.5-4.5%) in year one thereby avoiding the high interest rates of today, refinancing tomorrow when they’re lower.

So, if you see a home you love on the market but it’s overpriced, that’s ok. That’s perfect, really. Be one of the few showings, be the only offer and you will have ALL the negotiating power to get the best deal all while you can preserve a very low interest rate loan with some of the more creative loan programs that are out today.

If you want more personalized or detailed info on this idea, send me a text @ 360-589-1785 or email @ [email protected]

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