Buy Now Or Suffer
Buy now or suffer! That's pretty strong, but hey what I'm here to tell you is that right now we have a 2.5 to 2.75% interest rate on a thirty-year note that's incredible! That's something that's never seen.
Post-COVID it's going higher. Now they are predicting that it might go a half a point higher and it doesn't seem like that much, but that could affect you hundreds of dollars a month. So here's what you need to know, the other thing that is happening is that the highest prices are driven by low inventory. When we looked this week, we saw inventory in Chester County at one month. Now that has to go six months, before it even begins to think about being a buyer's market. Which means a six hundred percent jump in inventory. So that is an amazing amount of inventory. Last month eight hundred homes were listed in our listed now and last month seven hundred and twelve sold, so right now it's a tremendous squeeze of inventory. It's going further because we don't have enough houses. It's going further because right now we haven't built enough houses in the last ten years. When I look locally in Malvern, I saw an extreme one week inventory.
So buy now! Every day you wait may get worse for you in interest rates and in inventory. Plus as we move forward, people are not going to want to move when they have a 2.5% interest rate, and the next thing you know they have to buy a house at 4%. Even though 4% is a tremendously low opportunity as well. So in the future we are looking at less house affordability, less house, it keeps going so buy now or suffer is pretty strong, but, it depends on your definition of suffer.