Wondering about the latest market trends? Do they favor buyers or sellers? Read on to find out.
As you may be aware, there is plenty of shifting happening in the current market. Mortgage rates are on the rise, which has created some budget challenges for homebuyers. However, there are a few trends we have been seeing that actually mean good news for buyers.
First, one of the trends that has emerged is the increase in inventory. More homes for sale always means good things for buyers because it ensures there are enough options to go around. Although the housing supply hit a record low during the global health climate of the last two years, it appears to be stabilizing.
Calculated Risk shows that the number of houses for sale increased by 39.5% for the week ending October 28 compared to the same week in 2021. Economists still consider the current market a seller’s market, but there is still more to choose from as a buyer than there has been in recent months.
Next, a marked shift in trends we have observed is that bidding wars have decreased. Bidding wars occur when buyer demand skyrockets and there are multiple people vying for the same home. In turn, this drives up home prices because each party tries to outbid the others.
Today, things are different. Since another one of the trends we’re seeing is increased inventory, it means more to go around — which naturally leads to less competition. In fact, the National Association of REALTORS® reports that the average number of offers on recently sold homes has declined.
The last of the trends that have emerged in the current market is greater negotiation power. Less competition means that as a buyer, you naturally gain more leverage in negotiations. In the last two years, buyers were so desperate to snag a home that they often overlooked important steps in the transaction process, like appraisals or inspections.
However, recent data from the NAR indicates that the percentage of buyers willing to waive contingencies has decreased. Appraisals and inspections are significant parts of the home buying process. If something is uncovered during the inspection, buyers today now have more power to renegotiate their initial offer.
Despite these market trends, buyers are still facing a number of challenges in their quest for the perfect home. To increase your chances of success and ensure you don’t miss out on your dream house, contact SurterreProperties.com today to partner with a seasoned real estate professional.
Source: KeepingCurrentMatters.com
