Yes, the housing market in Northville can be quite confusing at the moment. There are several questions that arise when considering buying or selling a home. Here’s some localized information that may help alleviate some of the confusion.
The mortgage rate roller coaster
One of the primary concerns for both homebuyers and sellers is whether mortgage rates will increase or decrease. According to Robin Rothstein at Forbes.com, mortgage rates are currently influenced by the tug-of-war between high inflation and the Federal Reserve’s efforts to control it, which can indirectly push long-term mortgage rates higher.
For homebuyers in Northville, it is advisable to be prepared to enter the market when there is a significant enough drop in rates that allows them to afford a home.
The suggestion for homebuyers is to be prepared to jump into the market when there is enough of a dip in rates for them to be able to afford a home.
Insights from experts in the field
- Freddie Mac foresees a 6.2% rate for a 30-year mortgage by the fourth quarter of 2023.
- A bit more optimistic is Compass U.S. president, Neda Navab. “A sustained drop [in U.S. Treasury yields] could push mortgage rates into the 5% range late in the second quarter or in the second half of 2023, but that’s definitely not guaranteed.”
- “If inflation continues to slow down—and this is what we expect for 2023—mortgage rates may stabilize below 6% in 2023,” forecasts Nadia Evangelou, National Association of Realtors (NAR) senior economist.
While it is important to consider expert forecasts, it is crucial to remain aware of the dynamic nature of the economy. Take these predictions with a grain of salt, but also keep a close watch on the economy if you intend to make a swift entry into the Northville housing market.
How’s the inventory of available homes looking?
The inventory of available homes in Northville has been declining, and new listings are currently at all-time lows, as noted by Logan Mohtashami at HousingWire.com. Despite this, homes that are already on the market are selling quickly in many areas across the country.
In particular, turnkey-style homes in good condition, with attractive curb appeal, are in high demand. On the other hand, homes that require significant repairs, those that are overpriced, or those that lack appeal tend to stay on the market for longer durations.
In summary, buyers in Northville should expect a shortage of well-priced, move-in-ready homes and fierce competition for the limited number of homes that do become available, according to Clare Trapasso at Realtor.com.
And home prices?
Home prices are understandably a top concern for many buyers and sellers. The good news is that home prices have seen a decline of 12% from June, with the median price dropping to $363,000 in February, according to Dan Weil at TheStreet.com. The question is whether we can anticipate further price drops.
Mortgage rates play a significant role in shaping the housing market. When rates drop, the market tends to heat up, whereas rising rates slow down activity, deplete the inventory of available homes, and lead to price increases.
Here’s what the experts are forecasting when it comes to home prices:
- “… how much further home prices dip in 2023 will likely depend on where mortgage rates go.” (Forbes)
- “On a national basis, we expect home prices to decline about 4% both in 2023 and in 2024,” Moody’s analysts said. (The Street)
- “By February 2024, the analysts at CoreLogic expect home prices to increase year over year by 3.7%.” (Business Insider)
- The National Association of REALTORS predicts that home prices will be once again on the rise, beginning in the fourth quarter of 2023.
As you can see, experts hold differing opinions, which reflects the uncertainty surrounding future price trends.
For buyers in Northville, the opportune time to reenter the market is when interest rates align with your comfort zone and before prices begin to rise again.
To best position yourself, consider getting pre-approved for a mortgage, explore available down payment assistance programs if needed, and stay updated with the latest developments in the market. We will keep you informed about the happenings in the local Northville market.