Patience And Persistence Pay Off
We live in an instant gratification society. For the most part, anytime we want something we can get it at a moment’s notice. Are you hungry and do not feel like cooking? Go to a fast food restaurant or have a meal delivery service bring you exactly what you want! Is there a song you want to hear? Stream it instantly with a single click! Is there a movie or television show you want to watch? Go to your favorite streaming service and watch it right now without any commercials. Because we are so used to getting what we want when we want it, it can be frustrating to have to wait. However, the old adage that the best things come to those who wait is true in some instances. That is the case when it comes to buying a home. For home buyers, patience and persistence pay off.
Buying a House Requires Patience and Persistence
There is no sense in trying to sugar coat the experience home buyers are facing in today’s real estate market. Inventory is very low and, at the moment, home sellers seem content to watch the values of their property rise. At the same time, demand from home buyers has never been higher. Mortgage rates are still hovering near historic lows and home buyers, especially first-time home buyers, recognize the value in locking in a home loan at these rates. That is why mortgage application volumes are increasing in a dramatic fashion.
While on the surface it might seem irrational that home buyer demand is through the roof in spite of all-time high home prices, it actually makes a lot of sense. Saving several points on your mortgage rate will save you a ton of money over the life of your home loan compared to a cheaper home at a higher rate. Home buyers are being hyper rational about today’s real estate market.
Unfortunately, sky-high demand and record low inventory is making it difficult to buy a house, even if it is the most rational thing you can do. It turns out that there are a lot of rational home buyers who recognize the value of buying a home even at today’s prices. This makes it increasingly likely that home buyers will face bidding wars and end up paying more than the listing price. No matter how rational it is, buying a home in today’s market is not easy and might take some time. For those of us who are used to instant gratification, it can make the home buying process difficult. Thankfully, it is often the case that the most difficult things to accomplish are those that are the most worth doing. In today’s real estate market, patience and persistence pay off.
Buying a Home: Massachusetts Case Study
The experiences of home buyers in Massachusetts offers a good case study of what to expect in today’s market and why persistence is key. One of the big talking points about 2020 was the big real estate rally that few saw coming. As mortgage rates started to drop, home buyers started to flood the real estate market. This was especially the case for first-time home buyers and groups who were never really considered home buyers, such as millennials and Gen-Z. While these were the headlines that described last summer, they are even more true this summer and particularly in Massachusetts.
It is a busy time if you are a home buyer. Massachusetts is witnessing a real estate surge that is even surpassing 2020. New data for the Massachusetts real estate market indicates that home sales are surging. In July, home sales were up over 14 percent from home sales in July of 2020. That is a great indicator that home buyer demand is at all-time highs thanks to low mortgage rates. Massachusetts is also experiencing a severe shortage of available inventory. Available homes to buy are down nearly 3 percent from last month and are down over 23 percent from last year in July. In spite of rising home prices and instead of inevitable bidding wars, Boston home buyers are not stopping and the Massachusetts market is not slowing.
Final Thoughts
Home prices are higher than ever and there are less homes available to purchase than ever, but that is not stopping home buyers. It is clear that today’s mortgage rates mean that home buyers believe the juice is worth the squeeze. Mortgage rates will not stay this low forever and the ability to lock in a home loan that saves you a ton of money will eventually evaporate. While bidding wars and paying more than the listing price is painful and cuts against our desires for instant gratification, having patience and pushing through is worth it. Persistent home buyers who are willing to deal with the ups and downs of house hunting will eventually walk away with a bargain. With a little bit of resolve and the help of a professional mortgage broker, Massachusetts home buyers and home buyers around the country will succeed eventually.
If you are a first-time home buyer and you want to take advantage of today’s mortgage rates, contact us. The team at Peoples Choice Mortgage is ready to help you navigate this market and buy the home of your dreams.
