While higher mortgage rates are creating affordability challenges for homebuyers this year,
there is good news for those still looking to buy a home.
there is good news for those still looking to buy a home.
As the market has shifted this year, some of the intensity buyers faced during the peak frenzy
of the pandemic has cooled. Here are just a few trends that may benefit you when you look for
a home to buy a home today.
1. More Homes To Choose from
During the pandemic, the housing supply hit a record low; at the same time, buyer demand
skyrocketed. This combination made it difficult to find a home because there just weren’t
enough to meet buyer demand. According to Calculated Risk, the supply of homes for sale
increased by 39.5% for the week ending October 28 compared to the same week last year.
Even though it’s still a seller’s market and supply is lower than usual, you have more to choose
from in your home search. That makes finding your dream home a bit less challenging.
from in your home search. That makes finding your dream home a bit less challenging.
2. Bidding Wars Have Eased
Over the past two years, one of the top stories in real estate was the intensity and frequency of
bidding wars. But today, things are different. With more options, you’ll likely see less
competition from other buyers looking for homes. According to the National Association of
Realtors (NAR), the average number of offers on recently sold homes has declined. This
September, the average was 2.5 offers per sale. In contrast, last September, the average was
3.7 offers per sale.
If you tried to buy a house over the past two years, you probably experienced the bidding war
frenzy firsthand and may have been outbid on several homes along the way. Now you can jump
back into the market and enjoy searching for a home with less competition.
3. More Negotiation Power
And when you have less competition, you also have more negotiating power as a buyer. Over
the last two years, more buyers were willing to skip important steps in the home buying
process, like the appraisal or inspection, to try to win a bidding war. But the latest data from
the National Association of Realtors (NAR) shows that the percentage of buyers waiving those
contingencies is decreasing.
As a buyer, this is good news. The appraisal and the inspection give you important information
about the value and condition of the home you’re buying. And if something happens during the
inspection, you have more power today to renegotiate with the seller.
A survey from realtor.com confirms more sellers are accepting offers that include contingencies
today. According to that report, 95% of sellers said buyers requested a home inspection, and
67% negotiated with buyers on repairs due to the inspection findings.
Bottom Line
While buyers still face challenges today, they’re not necessarily the same ones you may have
been up against just a year or so ago. If you were outbid or had trouble finding a home in the
past, now may be the moment you’ve been waiting for. Let’s connect to start the home-buying
process today.