Is the Shifting Market Bad for Buyers?

For quite a while, we were in a seller’s market. All sellers had the upper hand; most sold their homes for more than they listed.

Fast forward to today and that’s no longer the case.

Home inventories have fallen and interest rates have skyrocketed. So is this good news or bad news for buyers?

For now, it’s good for buyers – here’s why.

Less Demand

First and foremost, there’s much less demand. This time last year you couldn’t wait for more than a day or two to see a home once it was listed or it was under contract. Not only that, but it was under contract for much more than it was listed for and buyers were waiving appraisal contingencies.

Today, that’s not the case. There are not as many buyers in the market because of higher interest rates, so buyers have much more opportunity to look at more homes and bid what they want on a home, not what other buyers are pushing them to bid.

Reasonable Sellers

The selling craze of last year made sellers go crazy. They weren’t accepting offers even a penny below their asking price, and most were holding out for the highest bid above their asking price.

It makes sense why they’d do it, but it’s not fair to buyers who invest in these homes, spending more than the house may be worth in a few months.

Today’s market has much more reasonable sellers willing to negotiate prices and allow you to pay a fair price for the home. You also don’t have to feel pressured to waive the appraisal contingency.

Tougher Affordability

There is one aspect of the shifting market that can be a challenge for buyers: mortgage rates. They’re at the highest in decades, with recent rates hitting over 6%. This could price many buyers out of the market.

When interest rates are on the rise, it's only natural that many are cautious about diving into the housing market. But here's the thing: as soon as those rates start trending downward, everyone else will likely follow suit.

Remember, the market is shifting, but that’s not a bad thing! Let me emphasize that buying a home should be on your terms and when you feel truly ready. Your financial journey is unique, and it's essential to make choices that align with your goals and comfort level.

If you’re ready to become a homeowner, contact us today, and let us help you get pre-approved for a mortgage!