This townhome (built recently, in 2016) enticed my clients, Brian & Hae, to make an offer. They moved from the East Coast last year and got caught up in the crazy late 2021/early 2022 storm when multiple offers were the norm and prices were always going up. At that time, they ended up renting.
The price of this townhome was originally listed at $899,950 and proceeded to be marked down to $799,950 over the next 52 days. The sellers had bought it the previous year but decided to relocate to Elk Grove. We ended up offering $815,000 with a credit of $15,000 for a 2-1 rate buy-down.
This was the discussion we had around buying: December was a great time to buy because there was no competition and I expected buyers to come out in January (since rates had decreased from the October high). Many lenders and economists anticipate a recession that will cause rates to drop more. If rates continue to decline, the likelihood of multiple offers increases. These buyers were savvy; they got into a home at a good time, did the buy-down for two years, and if rates go down during that time, they can refinance and not have to compete to get into a home.
In January, we have already seen a huge uptick in mortgage applications. We still have a housing shortage and are starting to see multiple offers on well-priced homes and even 14-day closes. You can never time the market perfectly, and owning a home over time will always trump paying somebody else’s mortgage.
Also, it’s important to listen to your agent, especially seasoned ones who pay attention to the market and have seen an array of ups and downs. Sometimes we really do know what we are talking about!