Topanga Ca, 90290
3 Reasons Why Now is a Good Time to Buy a House
1. More Homes For Sale Nationwide
Another reason that this year in 2022 is a good time to buy a home is that fewer buyers compete in a larger pool of homes.
According to the Federal Reserve, more homes are for sale in the United States today than during any period since December 2021.
And, the National Association of REALTORS reports there are fewer active buyers.
At the current sales pace, the national housing inventory will sell out in 11 weeks – a 62% increase from the start of the year.
When there are more homes for sale and fewer buyers to buy them, home sellers often get nervous, which makes this month a good time to make an offer on a home.
2. Sellers Are Willing To Cut Prices
It’s a good time to buy a home when sellers are willing to cut prices. This July, more than 30% of home sellers lowered their sale price from their original listing.
Altos Research says price reductions are in a healthy housing market, and this month’s price cuts match historical trends. However, the real estate data company also notes that the pace of price cuts is increasing.
3. New Credit Score System Adds 22 Points
Another reason is a good time to buy a home in 2022, U.S. credit bureaus stopped including medical debt and collections in their respective credit scoring formulas.
- Satisfied medical collections are removed from credit reports
- Unpaid medical collections are not recognized until the debt is one year old
- Outstanding medical collections of less than $500 are ignored in 2023 and beyond
23 million people benefit from the change. The CFPB estimates the typical home buyer’s credit score increased by 22 points.
Higher credit scores correlate with lower mortgage rates, lower down payments, and greater home affordability.
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