Bidding Wars Drop as Housing Market Cools

Your Guide to the Housing & Mortgage Markets

HERE'S HOW THE MARKET COOLDOWN MAY IMPACT YOU

WHAT'S GOING ON IN THE HOUSING MARKET RIGHT NOW?

Bidding wars declined in recent months from a high 71% of offers at the peak of the market down to 44% of offers, according to Redfin data. Meanwhile, mortgage rates have jumped by over 2% so far this year according to Freddie Mac data, and?they may?continue moving higher as the Fed removes its pandemic-era stimulus programs. This is prompting many homebuyers to re-evaluate their homebuying options and/or readjust the price ranges they can afford.

Meanwhile, more homes are coming onto the market although the number of homes for sale is still below pre-pandemic levels. There is still a widespread shortage of housing in the US which is likely to keep house prices elevated. All this means that house prices aren't likely to come down anytime soon, although they may stagnate at or near current levels for the time being.?

WHAT SHOULD YOU DO ABOUT IT?

• Home Buyers: If you're a homebuyer, it may be worthwhile to consider a 5-year or 7-year adjustable-rate mortgage (ARM) in order to increase your purchasing power. The interest rate and monthly payment on an ARM may be lower?than a traditional fixed rate loan. This may help you afford to?purchase a home in a higher price range.?
• Home Sellers: If you're thinking of selling your home, this could be the perfect time to do so. That said, it's more important than ever to price your home right so it doesn't sit on the market for too long. You may also want to consider paying points to reduce the buyer's interest rate. This could make your home more competitive and affordable to a wider range of potential buyers.

Contact me for more info or to evaluate your options!

NUMBER OF THE WEEK

44%

THAT'S HOW MANY?OFFERS?FACE?BIDDING WARS IN TODAY'S MARKET

Source:?Momentifi

Kevin Brierton

Branch Manager

NMLS: 599873

Neo Home Loans

[email protected]

(480) 553-8770

6991 East Camelback Rd., Ste D-300,

Scottsdale, Arizona 85251

Corporate NMLS: 227765

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