Heading into 2024, many people in Connecticut are wondering if it’s the right time to buy a house. With mortgage rates possibly going lower, it seems like a good moment to start thinking about buying a home. But some people believe waiting might reveal even better deals.
Getting a house early in the year could be smart because it puts you ahead before more people decide to buy, making the market tighter. Steve Schappert said, “Waiting for more homes to come on the market is a bit of a long shot, Connecticut’s issue with not having enough houses for everyone isn’t going away soon, it’s simple supply and demand.” We can’t build enough single family homes quick enough, zoning regulations frown on tiny houses which leaves condos and cost of construction of units for sale is still too high, something has to change, but it’s not currently on the horizon.
Steve Schappert suggests, “Now’s a good time to buy if you have a stable job and decent credit, at least 580. Get a house you can afford, lock in your mortgage rate, and go for it. Trying to save money faster than prices increase is really hard.”
Predicting where mortgage rates and house prices will go is tricky. We saw really low rates during the pandemic, but expecting them to drop that low again isn’t likely. Steve Schappert thinks mortgage rates might slowly get lower, but not drop dramatically. “Expecting them to fall to 5% is hoping for too much unless there’s a big change in how the economy is managed,” he says.
House prices might go down in some states, but Schappert doesn’t see them dropping in Connecticut. He notes, “With the lack of inventory and mortgage rates getting a bit lower, we are very likely to see big price increases. As people who waited last year start looking to buy because of lower rates, the housing market and demand is picking up again. So, buying a house in 2024 means thinking carefully about your money, where you want to live, and how much home you really need.
Buying now could protect you from future competition and higher prices. Schappert points out, “The market is showing it’s hand, are you in or will you hold?” Even though mortgage rates are low compared to December, buying before they potentially rise again could be smart. “The chance of facing more competition and higher prices if rates fall makes a strong case for buying now,” says Schappert.
Some think saving a bigger down payment is better, especially if you don’t have a lot of money right now. Schappert highlights the importance of being financially ready. For first-time homebuyers, good news is the CHFA “Time To Own Program,” which offers up to $50,000 for a down payment with no payments or interest ever. This can really help.
In the end, deciding to buy a house now or later in Connecticut is about balancing taking action now with planning for your financial future. It’s important to remember that mortgage rates around 6% are actually average for the last 150 years. Waiting for rates to drop dramatically or for many more houses to come on the market could mean missing out on becoming a homeowner. It’s often best to make a move based on what we know now, rather than waiting for something uncertain.
