Now is the Best Time to Buy a Home

I am starting to hear from some buyers that they are going to wait on buying a home because of “market conditions”. I am telling them these are the “market conditions” you need to buy a home and have been waiting for. Here’s why—
· Bidding wars are much rarer and smaller. For example, on the 24th a client got into a bidding battle for a 1 bedroom + loft condo in Aurora that was listed at $218k. There were 4 offers and she won the bidding battle at a price of $225k, only $7k over list price. By, the way, one big reason why she won the bidding battle on this home is because I called the listing agent during the Avs game at 6:30 PM.
· On a home in the suburbs that is not in updated condition you can probably buy the home UNDER list price. WOW! In March you would have paid at least $50k over list price for the same home.
· You don’t have to offer appraisal gaps or guarantees now typically and if you do they will be much smaller and no longer $50k or $100k.
· You probably don’t need to waive or limit inspection rights.
· You may not need to offer free rent-backs to the sellers.
· Home price appreciation is slowing from 20% a year to < 15% in May and will be lower than that in June I fully expect. I am hoping by September that year over year median home price appreciation will be 7% to 8%. · Next, there are more homes for sale than we have seen since May 2020. · Finally, I think we may be able to get buyers who need down payment assistance under contract now. What I know about human decision making is we like to do what the “crowd” is doing. But, this is a terrible way to make important financial decisions. Warren Buffett has said for decades he buys when others are selling and sells when others are buying. That’s the #1 reason why he is worth nearly $100 billion. If you want to be like Warren you have to act like Warren. It may not be comfortable for you, but you have to do it. Staying in your comfort zone is not beneficial to you financially.