Is This the Sweet Spot of the Housing Market?

Are we in the “sweet spot” of the housing market right now?

Seems like an absurd thing for me to say. Right?

Especially given high mortgage rates and an uncertain economy.

But despite those headwinds, here is what we're seeing right now. But bear with me, as this may get complicated.

At this time of year, prices tend to come down from their Spring/Summer highs.

High interest rates have dampened buyer demand, causing home inventory to rise slightly.

We're still at historic low inventory, so homes are getting sold but with one offer instead of multiple (of course, well-priced and well-positioned homes will still see a bidding war).

With fewer offers, buyers have a fighting chance.

They are now able to negotiate for better terms and possibly a concession related to price.

Here's what savvy buyers and sellers are doing instead of fighting for a lower price.

They are negotiating seller-paid closing costs to help "buy down" the buyer's interest rate.

You see, a $20,000 closing credit buying down the mortgage rate will yield a lower monthly payment than a $20,000 discount on the price, to the tune of a few hundred dollars a month.

And, if the sellers are sticking to their price, buyers can still take advantage of the monthly savings by offering $20k more than asking, in this example, and request that $20k in closing costs.

But what if the home doesn't appraise for that extra $20k over ask?

While it's always a risk, appraisers use sales from the past 90 days to use as comparable properties, and most of those were sold while prices were seasonally higher.

So, you see, it may indeed be the sweet spot in the market after all.

Reach out, and let's strategize!

P.S. If you even try to eat the “heart” of my cinnamon roll, we'll go to blows! ??