Prices in this area have come down about 8-12% since last year.....depending on the home's age, condition & interior appointments. While May has been a bit quiet.......June is shaping up to be busy.......And we ,( the greater princeton area realtors) are expecting the 2nd half of the year to pick up as the demand outpaces the inventory supply.
And......this is easily verifiable if you see interest rate trends since the beginning of the year to now..................Rates are inching up slowly & according to NAR economists , the Fed is expected to raise rates later in the year to ease inflationary trends.
Rate cuts were to rein in the lack of consumer confidence, but employment data, rising food & energy prices has not helped.
What a buyer needs to keep more of an eye on is what impact does the interest rate have on their monthly payments.
If the % slide of a home purchase price ends up saving you less than a % increase in interest rate, then that should concern you more, as it is possible that you may be priced out , or not be within your comfort zone for affordability ........or worse,.........by next year, if stricter lending standards are in effect, you may have to put a heftier down payment / have a better credit score / have a higher income........or all 3 to qualify for a loan .
I keep telling my buyers.............the financing needs to come first.............So
Work your numbers & then ask yourself this question.
Should I buy now or will I be able to next year?
Yes, as agents we only get paid when you close on a property, but I firmly believe that this is a buying opportunity that comes along only a few times in ones lifespan. As the prior poster mentioned, you really need to look at what's happening in the financial community. The criteria for mortgage approvals are becoming more strict. Credit scores play a far more important role than in past years, Mortgage Plans have higher qualifications.