Take Control of Your Future
It’s time to take matters into your own hands. While you can't control the state of the world, you can control your perspective and expectations. If you wait for perfect conditions before making a move, and those conditions never come, you’ll never go anywhere.
This is as true in real estate as it is in life. Over the past few years, many have been holding out hope for a return to pandemic-era mortgage rates, remaining in homes that no longer meet their needs. Meanwhile, others have recognized the shift and are already enjoying their new homes. Why wait for a return to crisis instead of moving forward?
The Shift in Real Estate Market Conditions
We remember the favorable real estate conditions of the recent past, and it’s tempting to cling to that memory as a basis for comparison. When the pandemic hit, the Federal Reserve (FED) took drastic measures and slashed mortgage rates. Since then, rates have bounced back and are now finding their balance.
The challenge today is that many consumers are still hoping for a return to those ultra-low mortgage rates, even though the economic crisis is behind us. Others, however, have moved on, looking ahead rather than back. Those who keep waiting for ideal conditions will find themselves left behind, with more ground to cover to catch up.
The Consequences of Waiting
Last fall, as mortgage rates peaked and started settling back down, savvy buyers and sellers jumped on the opportunity. We saw an unseasonable spike in listings and sales, with a flurry of activity far exceeding expectations. Check out this real estate market report from Tri-County Suburban Realtors® to see the trends for yourself.
By now, those who were prepared and ready are already reaping the rewards of their new homes. Instead of waiting for the market to meet an unrealistic ideal, they embraced reality and found their place in the world.
Even with last fall’s surge in activity, many continue to compare today’s mortgage rates to those of 2020-2021. Rather than adjusting to current conditions, they’re holding out for a return to pandemic-era opportunities.
As we enter the second half of 2024, we’ve been away from pandemic-era rates for about as long as those rates existed. The crisis-adjusted mortgage era lasted from March 3, 2020, to June 16, 2022—2 years, 3 months, and 13 days. Since then, it’s been 2 years and 2 months. Isn’t it time to start looking forward instead of back?
Real Estate Success Stories
Right now, mortgage rates are below the historic average. Many experts predict this trend will continue, with rates remaining in the mid-6% range through 2025. At the same time, housing prices are expected to keep rising until builders can catch up with demand.
These favorable conditions won’t last forever. Until housing supply meets demand, home prices are likely to continue increasing. So, why wait for prices to go up even further when mortgage rates are expected to remain steady?
Some people holding out are worried about being outdone by neighbors, friends, or family who took advantage of pandemic-era rates. While it’s understandable to want the same deal, the longer you wait, the further ahead others get. Don’t sit on the sidelines while everyone else moves forward—take control and make your move!
Don’t Let the Past Hold You Back
A common concern for sellers is that their current rate is better than what they could get if they financed today. While this may have been true during brief periods last fall when rates were higher than average, it’s important to remember that those who financed at higher rates can refinance later when rates drop. As we saw, the market took off last November, even with elevated mortgage rates.
“But I’ve been waiting for so long already—wouldn’t it be a waste to stop waiting now?”
I get it, but let me ask you this: If you were eating a bad pizza and a friend offered you a free sandwich instead, would you finish the pizza or take the sandwich? It’s never too late to change your mind.
Final Thoughts: Make Your Move
If you’ve been waiting for the perfect market conditions to buy or sell your home, here’s the reality: you could wait forever and never see those conditions return. Or, you could take matters into your own hands, open your eyes to the current world, and prepare for the reality we’re facing now. As we move into fall, take a moment to consider whether you’re content staying on the sidelines, waiting for something that may never happen.
We were spoiled by low mortgage rates and easy borrowing during the COVID crisis. Some who didn’t act when the market was in turmoil are still holding out hope for a return to that time. But others have kept their eyes on the market and are already enjoying their new homes.
Don’t fall behind waiting for a return to that chaos while others have already found ways to benefit in today’s market. It’s been as long since rates were at pandemic levels as they were at those levels. And rates are still lower than the historic average.
As I’ve often said, you can’t drive down the highway of life staring in the rearview mirror—you’ll crash. In real estate, looking forward means staying on top of market trends and making decisions based on real-time data.
At the end of the day, the choice is yours. If you’ve been holding out for a return to crisis, you’re free to keep missing opportunities. But if you want to move forward, it’s time to open your eyes and adapt to the current reality. When I write my fall market summary in January, will you still be watching as others made their moves, or will you be settled in your new home?
