“The Market is Shifting”. I’m sure over the last month you have heard and read this….but what does that really mean? Is it still a good time to sell? Should we wait to buy because the interest rates went up?
Let’s chat today about all of this. We are always here to answer your questions, and walk you through the process of buying, or selling. We are your sounding board, your experts for guidance, and want what is BEST for you and your unique situation.
So please feel free to reach out to us for an individual consultation.
Read on to get a head start on the information you need to!
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Now, if you been trying to purchase a home this past year or even during the pandemic, you know the limited supply of homes for sale was a considerable challenge. You most likely experienced some intense bidding wars, and this drove home prices up. Due to many more buyers than homes available, there was a lot of competition to get that winning offer.
With the current shift in the market, what was once your greatest challenge may now be your greatest opportunity. Say what?! Well, the current data is showing buyer demand is leveling out in the wake of higher mortgage rates. Here are a few reasons why this shift in the housing market is good news for your homebuying plans.
WHY was it such a sellers Market?
There were many reasons for the limited number of homes on the market during the last few years. One is a history of under building new homes after the market crash in 2008. The crash then was the opposite situation we’ve had recently, where there were more HOMES and HEADS, now we have more HEADS than HOMES. As the graph to the left from Keeping Current Matters shows, housing supply is well below what the market has seen for most of the past 10 years (see graph):
Look close at that graph above, it is showing a trend BACK UP in the right direction this summer! This is due to the moderating demand slowing down the pace of home sales. This allows the housing supply to bounce back, to grow and get to a more “normal” level of supply and demand. So, WHAT does that mean for you? Well, it means you’ll finally have more options to choose from! It should become easier finding your next home, and buyers can start asking for concessions.
Having more options should eliminate so many intense bidding wars. Data from the Realtors Confidence Index from the National Association of Realtors (NAR) shows this trend has already begun. In their recent reports, bidding wars are easing month-over-month (see graph from Keeping Current Matters):
If you’ve been struggling to find your dream home, or have been outbid multiple times, take a breath, a big sigh of relief. It should be getting easier. For buyers, the big takeaway here is you have more options and less competition today.
This shift is also allowing buyers a little more power when it comes to asking for things FROM the seller. Depending on the scenario, you may be able to offer for cash back for closing costs, help with inspections and so on. Let your agent guide you!
Please remember, while the inventory is going up, data shows multiple-offer scenarios are still happening – they’re just not as intense as they were over the past year. You should still lean on a trusted agent, like one of ours, to guide you through the entire process, helping you make your strongest offer up front.
One of our experience Real Estate Professionals would be more than happy to help you.
We help sellers every step of the way through the whole selling process. From help with staging your home, pricing, advertising, and handling all the confusing & stressful stuff.
We also have many buyers looking for homes, so we may even be able to bring you the perfect buyer without the hassle of the showings.
We look forward to hearing from you soon.
The Brokerage House Team