Why Now Is a Great Time for Homebuyers

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After many months of holding off, many homebuyers who faced high mortgage rates and affordability issues now have a chance to get back in the game. With rates decreasing, the current market is favorable for buyers, but this situation might not last long. If you have been reluctant to make a move, consider why you might want to act now and ask yourself: What will other buyers do?

If mortgage rates keep going down, as experts predict, more active buyers will return to the market. For example, a survey from Bankrate indicates that over half of homeowners would be willing to buy this year if rates fall below 6%. With rates already in the low 6% range, we are not too far from reaching that level. Once rates fall into the 5% range, the number of buyers will likely increase, which means more competition for you.

This higher demand could also lead to rising home prices, possibly reducing some advantages of having lower mortgage rates. Nadia Evangelou, a Senior Economist at the National Association of Realtors, explains that higher demand can push home prices up as multiple buyers compete for limited homes. In areas with housing shortages, this price increase can offset some benefits of lower mortgage rates. So, while waiting might seem wise, it could work against you if prices rise faster than your savings from the lower rates.

What This Means for You
Right now, you have a chance to benefit from the current market as it is good for buyers because many are still waiting, resulting in less competition for homes. Affordability has also improved. Recent reductions in mortgage rates have made owning a home easier. Mike Simonsen, from Altos Research, shares that typical mortgage payments are 7% lower than last year and 13% lower than their peak in May 2024.

While home supply is still low, it is better than it has been in years. Ralph McLaughlin, an Economist at Realtor.com, notes that the number of homes for sale has increased by 35.8% compared to last year, reaching the highest level since May 2020.

This situation gives you more options to choose from than you’ve had in a long time. With fewer buyers, improved affordability, and more homes available, you can find the perfect home before competition rises.

Why Waiting Could Cost You
If you are waiting for the perfect time to buy your next home, keep in mind that predicting the market is very tricky. The longer you wait, the greater the chance that conditions will change—and not always in your favor. Greg McBride, Chief Financial Analyst at Bankrate, warns that a further drop in rates could lead to an influx of buyers, making it harder to purchase a home.

Beth Dickerson

Boston, MA

Primary phone
(617) 510-8565
Email
[email protected]
Address
277 Dartmouth St. , 2nd Floor,
Boston, MA 02116

About The Author

One of Boston’s most reputable real estate brokers, Beth Dickerson has achieved more than $2 billion in sales and thousands of successful real estate transactions over her nearly thirty-year tenure. Beth has received national acclaim from the real estate industry and represents some of the most prestigious residents and properties across Massachusetts. Her enduring record as a top producer comes from the intuitive gift of sensing her clients’ needs. She has built a business that is referral-based at its core—a testament to her relationship-driven approach and penchant for exceeding expectations. It is this nuanced expertise that Beth leverages to guide many of her clients-turned-friends through some of the greatest milestones of their lives.

Beth was the proprietor of her own real estate company before joining the residential division of R. M. Bradley in 1993, where she was a top producer for more than a decade. In 2003, she founded her own boutique real estate firm, Dickerson Real Estate, before merging with Gibson Sotheby’s International Realty in 2007. Today, Beth attributes her success to her comprehensive marketing and advertising strategies, exclusive contact network, and unparalleled insight into neighborhoods like Back Bay, Beacon Hill, the South End and Waterfront. With an understanding that no two clients are alike, she works with clients in all phases of life—from first-time buyers to luxury developers, seasoned sellers and beyond. Beth offers clients the resources to aggressively market their property locally, nationally and globally, and her attention to detail, drive and enthusiasm are unmatched.

Beth has appeared in prestigious media outlets including The Wall Street Journal, Mansion Global, The Boston Globe, and Boston magazine, and was prominently featured as Greater Boston’s real estate expert on WCVB Chronicle in 2020. She has had the honor of serving as President of the Downtown Council of the Greater Boston Real Estate Board. For over ten years, she has been a Co-Chair and Committee Member for the Massachusetts General Pediatric Hospital for Children’s Storybook Ball. She serves as a Board Member of the Community Music Center of Boston and a member for the Perkins School for the Blind, Emerald Necklace Park Conservancy, Justine Liff Luncheon, Youth Villages and the Boys & Girls Club of Boston, among dozens of other organizations throughout the Boston area.

A long-time resident of Boston’s Back Bay, Beth was an active member of the community as she raised her two children: she served as treasurer of the Clarendon Street Playground and was an avid supporter of the Hill House Community Center.