Shifting Real Estate Market Insight

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 continued to move up. 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 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 the higher interest rates, so buyers still in the market 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.

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 or an inspection.

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.

The good news is you can shop around to get the most competitive rates, and you may even control your rate by perfecting your qualifying factors.?

Before you apply for a loan, check your credit score and fix any issues you find. Stabilize your income and make sure you have a decent down payment. Don’t show up with the bare minimum requirements. Instead, show lenders you are a good risk and are serious about buying a home in today’s market.

Also remember that market trends are local, so all the hype on the news may not apply to your situation.?Every single deal I've worked on in the last 6 months has involved additional negotiations with concessions going to the buyer.?Additional inspections, price adjustments, closing costs contributions so the buyer can pay for points and get a lower interest rate.?All this on AS IS residential contracts!??

Final Thoughts

With things settling down, prices will decrease and buyers will have more options. Sellers may wait longer for their home to sell, but everything won’t feel like such a frenzy. Instead, it will feel like a more relaxed process where everyone can get what they want from the real estate transaction.

If you’re ready look at homes on the market today, contact me today and let me help you find the perfect home.??