If you’ve been sitting on the sidelines, watching mortgage rates soar and waiting for the right time to jump into the housing market, you’re not alone. For months, potential homebuyers have been holding off due to high rates and affordability concerns. But today’s market conditions might just be the sweet spot you’ve been waiting for—and it might not last long.
Why Are Buyers Moving Now?
Mortgage rates are finally starting to trend down, which means affordability is improving for many prospective buyers in Brookings, South Dakota, and surrounding areas. This creates a window of opportunity that could help you get into the home you’ve been dreaming of. If you’ve had your plans on pause, now’s the time to ask yourself an important question: What do you think everyone else is going to do if rates drop even more?
The reality is, as mortgage rates continue to ease, more buyers will jump back into the market. A recent Bankrate survey shows that more than half of homeowners would be motivated to buy if rates fall below 6%. And guess what? We’re already hovering around the low 6% range, which means we’re not far from that tipping point. When rates dip into the 5s, competition will heat up fast.
So, if you’re on the fence about buying, waiting could mean more buyers to compete with, which will drive up home prices and possibly cancel out the benefits of lower rates. As Nadia Evangelou, Senior Economist at the National Association of Realtors (NAR), explains:
"The downside of increased demand is that it puts upward pressure on home prices as multiple buyers compete for a limited number of homes. In markets with ongoing housing shortages, this price increase can offset some of the affordability gains from lower mortgage rates.”
What Does This Mean for You?
Right now, Brookings and the surrounding areas present a unique opportunity for buyers. Many potential buyers are still waiting on the sidelines, which means less competition for you. That’s one of the reasons this market is such a buyer’s sweet spot. You have the chance to shop for homes with fewer people bidding against you.
Additionally, affordability has already improved. Recent easing in mortgage rates has made homeownership more accessible, especially when compared to earlier this year. According to Mike Simonsen, Founder of Altos Research:
"Mortgage payments on the typical-price home are 7% lower than last year and are 13% lower than the peak in May 2024.”
With lower mortgage payments, you might be able to afford more house than you could a few months ago. And even though the supply of homes is still tight compared to pre-pandemic levels, it’s improving. According to Ralph McLaughlin, Senior Economist at Realtor.com:
"The number of homes actively for sale continues to be elevated compared with last year, growing by 35.8%, a 10th straight month of growth, and now sits at the highest since May 2020.”
This means you’ve got more options to choose from now than you’ve had in the past few years. Combined with less competition, improving affordability, and a growing selection of homes, this might be the best chance you’ve had in a long time to find the right home in Brookings.
Why Waiting Could Backfire
If you think the market is going to get even better, you’re not alone. But trying to time the market perfectly is incredibly difficult, and it could cost you in the long run. If rates drop even further, more buyers will flood the market, increasing competition and driving up prices. As Greg McBride, Chief Financial Analyst at Bankrate, puts it:
"It’s one of those things where you should be careful what you wish for. A further drop in mortgage rates could bring a surge of demand that makes it tougher to actually buy a house.”
In other words, if you wait too long, you could end up paying more for a house simply because of increased competition. The best time to buy may actually be right now, while the market is in this sweet spot.
Local Market Conditions in Brookings
Here in Brookings, the housing market has seen its share of ups and downs, just like everywhere else. But with mortgage rates easing, home prices stabilizing, and inventory slowly increasing, the conditions are starting to favor buyers once again. Even though Brookings might not be a major metropolitan area, these trends still apply, and now could be your moment to take advantage of them before the broader market catches on.
Plus, the community of Brookings, along with nearby areas like Volga, Aurora, and Elkton, offers a range of homes in various price points. Whether you’re looking for a starter home or something larger for a growing family, the current market conditions are creating opportunities you don’t want to miss.
What Should You Do Next?
If you’re tired of renting or waiting for the perfect time to buy, let’s talk. At the Brookings Home Team, we can help you assess your financial situation, understand how the current market impacts your buying power, and explore the homes currently available in Brookings and the surrounding areas.
Don’t let the fear of missing out hold you back, but also, don’t wait until the competition heats up. The current market sweet spot gives you the chance to find the right home with fewer obstacles. Let’s connect and make sure you’re ready to move forward before everyone else jumps back in.
Bottom Line
If you’ve been thinking about buying a home in Brookings, now might be the time to act. With mortgage rates dropping, home prices stabilizing, and inventory increasing, today’s market offers a unique opportunity for buyers. Let’s connect to make sure you’re taking advantage of it before the competition ramps up and prices start rising again.
Posted by Shane Andersen on
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