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The Current State of the Housing Market: Why Buy Now?

August 20, 2025

As a trusted home builder in the Ann Arbor area, Norfolk Homes knows that navigating the housing market can feel overwhelming, especially with all the headlines about interest rates, pricing, and market uncertainty. Many potential homebuyers are wondering if now is truly the right time to buy a new home. The truth is, while the market may feel uncertain, there are important reasons why waiting might not be in your best interest.

At our core, our team wants to provide not just homes, but peace of mind. Let’s walk through what’s really happening in the housing market today, and why buying now could be one of the smartest decisions you make for your future.

Facing the Rates

A common hesitation we hear is: “What if I wait for home prices to come down or for interest rates to get better?” Home prices have consistently held strong, and in most areas, they continue to increase over time. The housing market is driven by supply and demand, and with inventory still limited, prices are not expected to fall at this moment in time. The truth is, waiting could actually mean paying more for the same home later.

Similarly, interest rates are not showing signs of significant improvement. If anything, they’ve been fluctuating with little consistency. Hoping for a dramatic drop may only leave you stuck on the sidelines while affordability slips further away. Buying now allows you to lock in a home at today’s pricing and move forward with confidence, and it’s important to choose a builder that is willing to be transparent and upfront with you, which is exactly what we stand for at Norfolk Homes.

Rate Protections Work in Your Favor

Even if today’s interest rates make you hesitant, there are safeguards in place that make the decision easier. When you build with us and secure a construction loan, you’re able to lock in your rate up front. This protects you from sudden increases while your home is being built. Even better, most lenders offer a “float down” option, meaning that if rates do happen to go down before you close, you can take advantage of the lower rate.

This gives you the best of both worlds: the peace of mind of knowing your rate won’t unexpectedly rise, and the flexibility to capture savings if rates drop.

Future Refinancing Opportunities

Another key benefit many homebuyers don’t realize is that lenders often provide refinancing options after you buy. In many cases, you’ll have up to three years to refinance at no charge if interest rates improve.

This means that you don’t have to perfectly “time the market.” You can purchase your dream home now, knowing that if rates are better down the road, you’ll have the ability to refinance without added stress or costs.

A Better Buying Experience: Without the Stress

At Norfolk Homes, we also believe in making the process as simple and stress-free as possible. Unlike some resale transactions, our new construction homes in Ann Arbor don’t come with escalation clauses or hidden costs that can suddenly push your budget out of reach. On top of that, our buyers don’t have to worry about transfer taxes, which can often be an unexpected financial burden.

We want you to feel confident about your purchase, not weighed down by extra costs or confusing fine print.

Why Waiting Can Cost More Than Acting Now

When you add everything together, waiting rarely saves buyers money. Home prices remain steady or rising, interest rates aren’t guaranteed to improve, and costs tied to resale transactions can quickly add up. By acting now, you’re not only locking in a home at today’s pricing; you’re also setting yourself up with flexible options for the future.

Plus, there’s something to be said for peace of mind. The longer you wait, the longer you put your life on hold. Buying a new home now allows you to enjoy the stability, comfort, and joy of a home designed for your needs today, not years down the road.

Talk to Our Team Today

At the end of the day, our goal is to make homeownership possible, comfortable, and rewarding for families like yours. The current housing market may feel uncertain, but the tools, protections, and opportunities available right now actually make it one of the most practical times to buy.

With no escalation clauses or transfer taxes, the ability to lock in your rate with a float down, and free refinancing opportunities within the first few years, you can move forward with confidence. Instead of waiting and worrying, you can start building the life you’ve been dreaming of today. It all starts with a builder you can trust, and with Norfolk Homes by your side, you can trust that we’ll work with you to find exactly what you’re looking for without the stress. Reach out today at (734) 336-1912 or fill out our online form to learn more about our high-quality new homes in Ann Arbor.