It's now a buyer's market

[pianoman9701]

Yesterday, I attended a webinar put on by the Mortgage Bankers Association (MBA) which focused on a couple of aspects home purchases and their forecast for the current year. Regarding rates, they don't believe rates are going to change in any meaningful way, either up or down, unless there's some unforeseen event which rocks the markets in a meaningful and persistent fashion. Rates on purchases are currently lower than the overall average since 1971 (when the FHFA started keeping statistics) by anywhere from 1/2 to 1%. Secondly, we're in a distinct buyer's market. There are 38% more sellers than buyers. This means a couple of things. Property values are stabilizing. Properties are staying on the market longer. And buyers are being given more incentives to make a deal, like seller concessions, price reduction, and more flexible closing requirements. If you've been waiting for the rates to drop to purchase, you may not only have a long wait, but you're missing out on the equity you'd be building and possibly, a deal that won't be available as inventory decreases. See the chart below. John Wallace NMLS #2014743

[pianoman9701]

Seller concessions.
Primary Residence or Second Home (Conventional):

< 10% down payment: Seller can contribute up to 3% of the purchase price.

10%–24.9% down payment: Up to 6% of purchase price.

≥ 25% down payment: Up to 9% of purchase price.

FHA
6%

VA
4%

In many cases, concessions can cover the closing costs. Remember that concessions may not be used for the down payment.

[IslandHunter]

These statistics are across the entire country correct? I would be interested to see how these numbers compare to WA. I have a feeling there would be similar trends but it also seems like the market is holding stronger in WA.

There are interesting dynamics in the WA market right now. You have a lot of people sitting on low rates, many (like me) itching to upgrade but can't justify leaving a 3.5% rate. We are also coming off the covid migration, paired with the low rates, that had a major impact on house prices especially in the rural communities. There are also still tons of people moving to WA (please stop) but this primarily affects the metro areas.

I am interested to see what the WA market does. My 3 year plan is to move out of the Seattle suburbs into a more rural area. Hopefully the price on my current house can keep going up while rural areas I want to move to stay flat or get cheaper. Wishful thinking I know. 

[pianoman9701]

I should be receiving the charts from the webinar within a week which show by state and I'll post up. I do remember that the rapid equity growth we've experienced in WA over the last 15 years is slowing considerably.

[pianoman9701]

I've requested the plates from the webinar and will post that plate that shows the value changes by state when I get them.