Higher mortgage rates may be creating affordability challenges for homebuyers this year, yet there is some other good news on this front. Both the market and the buyers’ intensity of experience have cooled this year; the following may be encouraging to those seeking their dream home at this time.
There are more homes to choose from.
For most of the last two years, there has not been enough homes to meet buyer demand. According to Calculated Risk, the supply of homes for sale increased by 39.5% for the week ending October 28, compared to the same week last year. It is still a sellers’ market and supply is still low, yet at this time you do have more homes to choose from.
Bidding wars have eased.
If you were put off by the bidding war frenzy over the past two years, now is your chance to jump back into the market and enjoy searching for a home with less competition. With more options now, the National Association of Realtors (NAR) reports that September 2022 found an average of 2.5 offers per sale in contrast to 3.7 offers this time last year.
Buyers have more negotiation power.
When there is less competition, buyers also have more negotiating power. For instance, the home inspection is a very important part of the sale process that was waived by buyers in past sales to win bidding wars.
A recent survey from realtor.com confirms more sellers are accepting offers that include contingencies. It reports that 95% of sellers said buyers requested a home inspection; 67% negotiated with buyers on repairs as a result of the inspection findings.
Granted, there are still challenges facing buyers today and, some of those from yesterday have eased considerably. Now is the time for us to connect and start your home buying process.