The seller’s market has been around town for quite a while. As such, almost all sellers had the upper hand, and many had sold their homes at prices more than they had listed.
However, that is no longer the case as of today. Instead, the home inventories fell, and the interest rates went up. So can this be considered good news or bad news for buyers?
As of now, it’s good for residential property buyers and here are some reasons why.
1. Less Demand
The real estate market now has less demand than last year’s, wherein you’d see a home getting listed or placed under contract within a day or two. In most cases, the houses were under contract at prices that were more than it was listed, and most of the residential property buyers have waived the appraisal contingencies.
Unfortunately, that is presently not the case. Due to the higher interest rates, fewer buyers are in the market now. Due to this, the residential property buyers currently doing their search have all the opportunities to check more homes. Also, they have all the freedom to bid on what they want on a home and not because of what the other buyers are dictating them to bid.
2. Reasonable Sellers
The previous year’s selling craze made many sellers go crazy. Many of them refused to accept offers, including those that were a penny below their asking price. Also, many of them have been holding out for the highest bid above their asking price.
Technically, what they’ve done made sense. But it’s unfair to property buyers who invested in these houses and spent more than what the homes’ actual worth in a few months.
Presently, the real estate market has more reasonable sellers, including those willing to negotiate prices and allow you to pay for the home’s fair price. Also, you don’t need to feel pressured into waiving the appraisal contingency.
3. Tougher Affordability
The shifting market has one aspect that could challenge property buyers: mortgage rates. The said rates are currently at their highest in decades. With the latest rates hitting nearly over 6%, this could price a lot of property buyers out of the market.
Luckily, the good news is that you can shop around to find the most competitive rates. Also, you can try perfecting your qualifying factors to control your rate. So, before applying for a loan, don’t forget to check your latest credit score and fix all the issues, if there are any. Establish a stable income and ensure you can provide a decent down payment. Refrain from going out and showing up to apply for loans with the minimum requirements. Instead, look for ways to convince the lenders that you’re a good risk and are committed to buying a home in today’s market.
Final Thoughts
The real estate market is shifting, which is not always bad. Property buyers will not always pay overinflated home prices without expecting the bubble to burst eventually.
Prices will likely decrease as things settle down, and property buyers will gain more options. The sellers might need to wait longer for their homes to be sold, but everything will go smoothly. The process is expected to be more relaxed, with everyone getting what they want from the real estate transaction.
If you’re ready to look at homes on the market today, contact Nicole Spellman Group, and let us help you find the perfect home.
