SCARED TO BUY RIGHT NOW? This might help you decide!
Updated: 4 days ago
Buying a Home Now or Waiting? What Are the Market Signs Telling Us?
One of the biggest questions facing homebuyers today is whether to purchase now or wait for lower mortgage rates and possibly lower home prices. It's a reasonable question, particularly with mortgage rates recently climbing above 7%. But the answer may not be as simple as waiting for better conditions. Let's first examine what's happening in the Market.
What Is Happening in Our Local Housing Market?
The July–September 2026 statistics for the broader Prescott/Quad-City area show a market with fewer sales but relatively stable prices. The median closed price for July-Sept. remained $510,000 in both 2025 and 2026. Closed sales declined about 5%, and available inventory also declined approximately 6%. September's supply of homes fell from 5.1 months' worth of supply to 4.3 months.
However, each individual community is its own market and behaves differently. Prescott's median price declined 3.5%, while Prescott Valley's actually saw a slight increased 2.2%. Dewey-Humboldt experienced a larger median-price decline, going from $410,000K to $390,500. However, limited number of sales makes that number less reliable as an indication of overall property values.
The important point is that higher mortgage rates have slowed buyer demand, but they have also discouraged homeowners from listing and selling. That limited supply continues to support stable or even higher prices in some cases.
Three Reasons to Consider Buying Now
Today's market offers real opportunities that may become less available if mortgage rates decline and more buyers enter the market. Fewer buyers competing means more negotiating leverage, less pressure to make hurried decisions, often resulting in greater willingness among sellers to consider meaningful concessions.
In this present market many buyers have been able to negotiate a lower price, seller-paid closing costs, mortgage-rate buydowns, significant repairs, and often "all-of-the-above". That is a real benefit that may not be there if there are lots of buyers competing for a limited or dwindling supply of homes. Presently, the supply of homes for sale is shrinking.
2) Interest rates could rise rather than decline. If this happens monthly payments become even more unaffordable. It might be smarter to negotiate aggressively for real concessions thus lowering not only your price but your closing costs as well and possibly to have a seller buy down the interest rate. But one might argue the higher rates would mean lower prices. That seems obvious, but ironically (and counter intuitively) the reverse can and has been true in parts of our present market. Prices have actually risen along with interest rates. The constrained supply due to the "Mortgage Rate Locked-In Effect" is a significant factor in why we are stable and even higher prices in parts of our market.
3) Your dream house may not be there when you decide to pull the trigger. A rule of thumb I tell my buyers is "If you're excited about a property then so are other buyers." If they house is really cool, in a good location, in good condition, then even in this market it will sell. Buying now makes sense for someone who has found the right home, expects to remain there for several years, and can comfortably afford the payments.
Reasons to Consider Waiting
1) You're not as ready as you could/should be.
Waiting can be the better decision if your income or employment is uncertain, you need to improve your credit, reduce debt, or save for a larger down payment. Most people want to own a home, but if you're absolutely stretching it on affordability beyond your comfort and/or your credit is marginal, it is probably better to wait.
2) Interest rates might go down. Lower mortgage rates would certainly improve affordability, assuming home prices remain relatively stable or decline. Eventually rates will go down. The question is when and by how much?
3) Prices might come down.
We have already seen that they have come down in some sectors of our market. That we will continue to see reductions seems a likely scenario in the near future. Again, how much will they decline and how much would a price reduction help on the monthly payment verses a lower interest rate. Ask your lender to compare a price reduction with a temporary or permanent mortgage-rate buydown to see which one is most beneficial.
When Will Rates Come Down?
Nobody has a crystal ball. The most important indicator to watch is the yield on the 10-year U.S. Treasury note. Mortgage rates generally move in the same direction, although not always by the same amount. Mortgage rates are usually 1.5%-2.25% higher than the U.S. 10 Year Treasury. Click Here For Latest 10 Year Treasury Yield
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The Best Time to Buy Is the Right Time for You
Trying to perfectly time home prices and mortgage rates is difficult, if not impossible even for professionals. The better approach is to evaluate your financial circumstances, understand the current market, and develop a purchasing strategy that makes sense for you.
With more than 22 years of experience helping buyers and sellers throughout the Prescott and Quad-City area, my goal is to help you make an informed decision, not pressure you into buying before you're ready.
Whether you want to purchase now, explore your options, or wait for more favorable conditions, I'm available to help you evaluate properties, understand market trends, negotiate favorable terms, and plan your next move.
Give me a call or text. Let's discuss your goals and find the best path forward.
Jeff & Teresa Harshman
Home Smart Fine Homes and Land 928.533.2117 928.710.3684 Jeff@RealEstateDepot.net
Helping Folks on Their Journey Home for Over 22 Years!
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