10 Things To Do If Home Prices and Mortgage Rates Don’t Drop This Year

by EV Atlanta

If you’ve been waiting for the real estate market to shift into your favor, with lower home prices and lower interest rates, you might be frustrated, as industry professionals continue to report insignificant changes.

It’s better to think of the real estate market as a roller coaster — thrilling and unpredictable, said Matt LaMarsh, a real estate advisor and market expert with Engel & Völkers.

“Instead of hoping for a drop in prices or rates, focus on what you can control. Start building a strong financial foundation. Save aggressively, reduce debt and improve your credit score,” he said.

Don’t Wait Too Long

Blumberg’s concern is that if you decide to sit and wait, you could be waiting for a very long time.

“It is also likely that when rates do come down, home prices will conversely go up. My advice to homebuyers is to keep looking and when you see something that you like and you can afford, don’t hesitate to jump on it,” he said.

Tristain O’Donnell, a Realtor with Engel & Völkers, added that homebuyers should not put all their eggs in one basket as it pertains to hoping interest rates and/or home prices will drop.

“In my opinion, home prices won’t drop in the next 12 months and should interest rates drop, home prices will rise, creating a catch-22. Do not bank on home prices and interest rates to both drop,” she said.

Don’t Focus on Rates

Blumberg said that the current housing market is one of “very tight inventory” and he expects that to continue, but there are some good prices, if you know where to look.

“Prices are great in many markets right now, especially where I do business in Manhattan and Brooklyn. I think buyers are currently focusing too much on interest rates, because they are temporary. You can always refinance later on. You date the rate, but you marry the price. Lock in that good price on a great home while you can, because that purchase price is forever,” he explained.