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Should I buy a house now? Reasons why you should reconsider purchasing in this market. · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Hey everybody, it's Connor.
• 0:01
  SPEAKER_00: Wanted to give you a quick real estate update.
• 0:03
  SPEAKER_00: We are actually closing out November 2023, and there are some things that you need to know about what's going to be happening potentially in 2024 at a best position yourself.
• 0:13
  SPEAKER_00: Now, you might be asking yourself the question, or maybe you know somebody looking at real estate, wondering if they should be buying or doing anything like that right now.
• 0:23
  SPEAKER_00: I would say as we get closer to the holidays, right now probably isn't the worst time to purchase real estate, but we do have interest rates that are upwards of 7 and 8%.
• 0:34
  SPEAKER_00: That scares off a lot of people.
• 0:36
  SPEAKER_00: But what they forget is what's going to end up happening if, in fact, interest rates drop next year.
• 0:42
  SPEAKER_00: If you secure real estate as a home buyer now and interest rates do happen to drop next year, then you'll be able to refinance your house at those new interest rates, as long as of course your credit profile fits and those other sorts of things.
• 0:56
  SPEAKER_00: But typically that's probably going to be a good guess unless real estate goes lower in value than it is currently.
• 1:02
  SPEAKER_00: But when you increase the buyer drive, because buyers waited for interest rates to drop, and if they do, once you get that higher buyer drive, then you're going to run into a much higher competition level.
• 1:15
  SPEAKER_00: You're going to see that the sellers are going to have multiple offers they're going to receive on the properties they have listed for sale, and that they'll also be able to get more money for those properties at that time.
• 1:27
  SPEAKER_00: You could bet on the market going upwards of 15 to 25 to 30 percent in some areas.
• 1:34
  SPEAKER_00: We'll also see a lot of those offers if buyers hold off until the interest rates do drop, if in fact they do.
• 1:40
  SPEAKER_00: So don't hinge your bet on something not happening.
• 1:43
  SPEAKER_00: But it is definitely something to consider.
• 1:45
  SPEAKER_00: Let me throw out this just so you know, as a home buyer, if you are going to consider buying today, do not buy today with the hopes of interest rates dropping.
• 1:55
  SPEAKER_00: You'll want to buy today, ensuring that you can make that all-in payment every month comfortably, whatever that means to you and yours.
• 2:04
  SPEAKER_00: So find out what those numbers look like, and then you can start working with potentially buying real estate.
• 2:12
  SPEAKER_00: But if rates do drop, which a lot of entities out there propose they will in 2024, that's going to make the market start moving very, very fast.
• 2:21
  SPEAKER_00: There isn't going to be any additional inventory actually by that time, except for the normal properties that will be coming onto the market in this particular type of housing slump where we have a lot of sellers out there, potential sellers, that are wearing what's called golden handcuffs.
• 2:38
  SPEAKER_00: And what that means is basically they have a very low interest rate, and it's difficult for them to leave because of that.
• 2:46
  SPEAKER_00: They want to keep that interest rate.
• 2:48
  SPEAKER_00: So now there are lenders and other people out there that are starting to talk about they'll refinance a buyer for free if the interest rate does drop.
• 2:57
  SPEAKER_00: So that's something to watch out for and make sure you get what that means in writing.
• 3:02
  SPEAKER_00: And then on the other side of it, you have a lot of sellers wondering if they might be able to assume another property's interest rate.
• 3:12
  SPEAKER_00: Because there are some interest rates on mortgages, some mortgage types, I should say, that are transferable.
• 3:19
  SPEAKER_00: That's something else that's going to start coming out here in the next few months.
• 3:23
  SPEAKER_00: I'm Connor McIver.
• 3:25
  SPEAKER_00: When you're ready, reach out to me.
• 3:26
  SPEAKER_00: It was a pleasure updating you, and I hope you have a fantastic Thanksgiving and Christmas, and I'll be here.
• 3:32
  SPEAKER_00: You can check me out on YouTube, Fat to Fit Realtor.
• 3:35
  SPEAKER_00: We'll talk to you soon.