Waiting For Rates To Drop To Buy?

Buying Homes In Kentwood, Selling Homes In Kentwood

Waiting For Rates To Drop To Buy?

Published by

Tracy Thrower Conyers

on

April 13, 2024

A lot of people tell me they are waiting for rates to come down before they take the plunge and buy their beach cities property.

A lot of those same people are surprised when I tell them that when rates come down, prices will go up.

Why? Because there are a lot of buyers waiting for the same thing and when they all come flooding back to the market, they will compete for available properties and their multiple offers will drive prices up. It’s simple supply and demand.

The Better Home Buying Strategy

The better strategy, if you have the financial capability, is to buy when rates are higher and there is less competition.

You might be asking yourself “well if I buy at a higher rate, doesn’t that mean I’ll have to buy less house?” It’s a legitimate question, but the hard truth is that if you can’t afford your dream home with higher rates, you won’t be able to afford it later at the competitive price either.

You Can Do It

But don’t get discouraged. If you are intent on getting into a home and willing to be a little flexible, a good agent can help you find what you want at your price point, but you have to have a clear understanding of what items on your wish list are negotiable. Maybe you can have that four bedroom house if you’re willing to remodel later. Or maybe you shop the neighborhood adjacent to your target neighborhood to pick up the right property at the right price.

And rates will come down eventually and you can refinance your rate, but in the meantime if you are considering being an early mover to take advantage of the lower competition environment right now, I wrote a blog post with 9 ways to help you hack high rates.

High Interest Rates Don’t Have To Be Scary

Interest rates are not something to be afraid of. They are simply part of the existing landscape to be strategized. Even cash buyers should pay attention and not wait. There are zero indications of anything that is going to drive prices down in the foreseeable future.

If buying a home this year is in your plans, I urge you to book an appointment to talk strategy. I’m not nudging you here to boost my business. I’m nudging you because I truly believe the best buying strategy is to, right this minute at a minimum, get ready right to move on your plans soon. I can help you get ready. No pressure. I don’t roll that way. Read my bio, if we haven’t met. I and my team are rooting for you!

Oh! And one last piece of advice! Be careful who you take your home buying advice from. Social media and the mainstream media have lots of “scarelines” on this topic designed to get you to watch. Most of that content is based on national real estate trends which usually bear little resemblance to what is happening here in the beach cities of Los Angeles. Bring me your headline questions and I’ll show you what the straight story is here in the Beach Cities.

By Tracy Thrower Conyers, Your Neighbor In Kentwood
Tracy is a realtor specializing in LA’s Beach Cities, with a hyper-emphasis on Westchester & more specifically, Kentwood. She is a past practicing attorney & real estate tech founder. Tracy is an outspoken housing policy and lifestyle advocate in our community and 22+ year real estate industry vet. She’s been quoted on topics of Silicon Beach real estate by trusted media outlets including the Los Angeles Times, KCET and The Argonaut. Tracy & her family have called Kentwood home for over 20 years. Tracy & her husband Doug are empty nesters living with their two cats and pup, Luna.