While higher mortgage rates are creating affordability challenges for homebuyers this year, there is still good news for those looking to buy a home. As the market has cooled this year, some of the intensity buyers faced during the pandemic’s peak frenzy has also cooled. Here are a few trends that may benefit you when you buy a home in today’s market.
- More Homes To Choose from: The combination of slower sales and an increase in new listings hitting the market has created more choices for buyers. During the pandemic, the housing supply hit a record low while buyer demand skyrocketed. Today, Calculated Risk reported a 39.5% increase in homes on the market compared to last year. The market is still considered a sellers’ market due to a lower supply than normal. However, rising inventory makes finding your dream home a bit easier.
- Bidding Wars Have Eased: During the peak of the housing frenzy, we saw intense bidding wars. But today, things are different. National Association of Realtors reported that the average number of offers on a home has declined from 3.7 last year to 2.5 this year. Now you can enter the market and enjoy searching for a home with less competition. With more options, you’ll likely see less competition from other buyers looking for homes.
- More Negotiation Power: Less competition means more negotiating power as a buyer. Many buyers skipped appraisals and inspections in the housing frenzy to win a bidding war. National Association of Realtors reported that buyers waiving those contingencies are decreasing. The appraisal and the inspection are vital to the home-buying process, and you should never skip them. With more negotiating power, you can feel confident that you’re making the right decision for your purchase. And if something turns up in the inspection, you have more power today to renegotiate with the seller.
While buyers still face challenges today, with more homes on the market and less competition from other buyers, you may have more success finding your dream home. And with more negotiating power, you can be confident that you’re making the right decision for your purchase. Don’t let the current market conditions discourage you from buying a home. There are still plenty of opportunities out there. Let’s connect to start the homebuying process today.
Liz lived in the Grand Canyon for nearly 20 years, and during that time, she made the beautiful outdoors of Northern Arizona a part of her daily life. When she and her family moved to Prescott, they bought a house and had a great experience with their Realtor. Liz decided she wanted to become a part of that great team and found they share the same vision of customer care, respect, and service and also understand the importance of supporting the community in which they practice their business.
Liz Norvelle believes that building a relationship based on respect and trust is what truly matters. Liz’s exceptional customer service will establish the groundwork for a relationship with her clients that will continue into the future when you’re ready for your next home or when friends and family come to join you in your new hometown. Contact Liz, she will take the time to get to know you and assist you in finding a home that best fits your lifestyle needs.