(WHTM) — This is usually a busy time when it comes to buying a house. But, with interest and mortgage rate hikes, is now the right time?
Lawrence Yun with the National Association of Realtors says while the market has definitely changed since last year, buyers are still out there and Central Pennsylvania is a great place to look.
“Even with the rise in interest rates, there’s still a tremendous amount of home buyer interest. One-third of the properties listed on the market are getting multiple offers and being sold above list price,” Yun said. “Compared to other bigger cities, very affordable, some office workers willing to do the long commute, especially with the remote work flexibility.”
Home sales have been down this year, but that is turning around, especially with the Federal Reserve indicating it’s done raiding rates for now. Yun also points to the strong labor market. As jobs continue to go up, so does the number of people looking for a home.
“That’s going to enlarge the pool of eligible of potential buyers coming into the market. I expect the market to improve for the remainder of the year,” Yun said.
Yun also answered the question of whether or not now is a good time to look for a home.
“Market timing sometimes plays out well, other times it turns out to be a wrong decision. But if one is looking for the long term, when we look back it doesn’t matter if I bought the home in June, July, or August. If the mortgage rate were to somehow decline, one can always refinance downward.
Plus, Yun said buying a home is still a good investment.
“In the Harrisburg region, a homeowner over the past decade (has) $70,000 in housing wealth. That’s just coming from price appreciation, and steady growth happening in the Harrisburg region. $70,000 is a very good return for being a homeowner,” Yun said.
And, if you decide to look for a home, Yun says his best advice is to work for a realtor.
“All the complexities of home buying..home inspection, what is the appraisal process, how do you negotiate a contract, let the realtors handle the complex issue so the consumers will just look for the right home within their budget,” Yun said.
A realtor can also find listings quickly, as well as help you get a discount on homes that are lingering on the market.