The housing market isn’t what it was a year ago—and that’s not necessarily a bad thing. Yes, interest rates are higher year over year, but in many markets, prices are decreasing or, at the very least, not increasing at the breakneck pace we’ve seen.
7-1If you’ve tried to buy or sell a home recently, you know what we’re talking about. The market conditions have been wild, with bidding wars, all-cash buyers, and sellers demanding no contingencies. It’s all but priced out first-time home buyers.
The good news is this is no more. Here are 5 things home buyers can be grateful for now that the tables have turned in the housing market, making it easier to buy a home.
1. Less Competition
Low interest rates are great, don’t get us wrong. But today’s higher mortgage rates—not to mention the recent buying spree—means there are fewer buyers in the market.
What does that mean for you? Less competition! Getting in bidding wars, paying high home prices, and waiving inspections is not fun, but many people were doing all that simply to secure a family home, any home.
Today’s market conditions take the pressure off of first-time home buyers. They can often take their time, do their due diligence, and make a counteroffer. An experienced real estate agent is still the best person to help with these items, but now the ball is in the buyer’s court!
2. Seller Concessions
Let’s talk about that counteroffer for a minute. Did you like the Jacuzzi in the backyard? Does the prospect of lower mortgage rates have you thinking about buying points? Would you like to absolve yourself of some of the other fees associated with escrow and closing costs?
Many sellers today are motivated, because they know they’ve missed out on the hottest part of the market. Most don’t want to wait any longer and risk housing prices dropping further—or, even worse, having their home sit on the market with no bites.
While sellers aren’t obligated to lower their price, throw in extras, or pay for closing costs or points, it can’t hurt to ask. Many real estate agents will tell you that a motivated seller will consider these items if it means selling their home—especially if they’ve already bought a new home and need to move.
3. More Inventory
Two things are happening in many markets right now: Homes are sitting on the market longer, and more sellers are trying to unload their homes as they don’t want to risk housing prices dropping further. This tight housing market has been so difficult on first-time home buyers, and part of that was due to low inventory.
It’s a different story today. There are generally loads of homes to choose from, giving buyers the ability to be more discerning, pick the house that has their desired features, and buy a home that’s close to what they envisioned in their dreams.
There’s no need to settle in this market; the lower rate of home sales guarantees that there’s something for everyone.
4. Supply Chain Improvement
At first glance, supply chain challenges may not seem to have much to do with buying a home, but they do.
Many sellers have waited to put their homes on the market because they couldn’t secure the materials—cement, lumber, etc.—or labor needed to carry out repairs or improvements before listing their house. Issues with transportation also delayed the delivery of these materials to the contractors who would carry out this work.
Thankfully, many materials are back in stock, and issues with transportation are waning. This means sellers can get moving on that to-do list. As they do, more homes will become available.
A bonus is that these homes will come with newly repaired items or upgrades. The supply chain untangling also means new home builders can get more supply finished and on the market.
5. We Can Help with Everything Else
Experienced real estate agents are part of the home buying equation. A trustworthy loan officer is another. Together, they work as a dynamic team to help you navigate rate hikes, market conditions, home prices, mortgage rates, and ultimately home sales.
The one thing that’s stayed constant throughout the past few years is that the market is ever-changing. You don’t need to stay on top of it when you have an APM loan officer by your side. We eat, breathe and sleep interest rates, housing market fundamentals, and the economy. Best of all, we’re always here to answer any questions you may have.
Whether you’re ready to buy a home today or simply want to hear more about what this current market is like, we’re available anytime. Give us a call today.