Because rising mortgage rates have created some challenges for buyers this year and have “stolen the show,” some of the emerging good news for buyers may have been overlooked. As the scorching market cools, buyers may find themselves in an interesting position moving forward.
More Houses on the Market
As the worldwide pandemic raged, the housing supply hit unprecedented lows while buyer demand absolutely soared. Simply put, there just were not enough homes to meet buyer demand. But now the market has shifted! Calculated Risk advises that inventory has increased by 39.5% during the last week of October as compared to the same week in 2021. Your dream home may now be easier to find.
Bidding Wars are Mostly Over
If you were a buyer who attempted to purchase a home in the last couple of years, you are probably familiar with the bidding frenzy. Perhaps you experienced the horrible feeling of being outbid—more than once! With the easing of bidding wars, buyers are experiencing less competition to buy their dream homes.
Buyers Can Negotiate
With less competition, many buyers may find themselves in the driver’s seat during negotiations. Today, the number of buyers waiving contingencies (such as appraisal, loan, or inspection) has dropped significantly. This provides a much-needed safety net during escrow from potential appraisal gaps or discovering the need for costly repairs.
The Takeaway
Although buyers face challenges in today’s market, these challenges differ from those buyers faced during the past couple of years. If you developed buyer fatigue from presenting multiple offers and being outbid, or just couldn’t find the right home, the current market may be just what you’ve been waiting for. It’s more important than ever to partner with a trusted real estate professional to assist you. Check out my FAQ for Buyers and give me a call. 707-636-4215