Is the Shifting Market Bad for Buyers?

Is the Shifting Market Bad for Buyers?

For quite a while, we were in a seller’s market. All sellers had the upper hand; most sold their
homes for more than they listed.
Fast forward to today and that’s no longer the case.
Home inventories have fallen and interest rates have skyrocketed. So is this good news or bad
news for buyers?

For now, it’s good for buyers – here’s why.

Less Demand

First and foremost, there’s much less demand. This time last year you couldn’t wait more than a
day or two to see a home once it was listed or it was under contract. Not only that, but it was
under contract for much more than it was listed for and buyers were waiving appraisal
contingencies.
Today, that’s not the case. There are not as many buyers in the market because of the higher
interest rates, so buyers have much more opportunity to look at more homes and bid what they
want on a home, not what other buyers are pushing them to bid.

Reasonable Sellers

The selling craze of last year made sellers go crazy. They weren’t accepting offers even a penny
below their asking price, and most were holding out for the highest bid above their asking price.
It makes sense why they’d do it, but it’s not fair to buyers who invest in these homes, spending
more than the house may be worth in a few months.
Today’s market has much more reasonable sellers willing to negotiate prices and allow you to
pay a fair price for the home. You also don’t have to feel pressured to waive the appraisal
contingency.

Tougher Affordability

There is one aspect of the shifting market that can be a challenge for buyers: mortgage rates.
They’re at the highest in decades, with recent rates hitting over 6%. This could price many
buyers out of the market.
The good news is you can shop around to get the most competitive rates, and you may even
control your rate by perfecting your qualifying factors.
Before you apply for a loan, check your credit score and fix any issues you find. Stabilize your
income and make sure you have a decent down payment. Don’t show up with the bare
minimum requirements. Instead, show lenders you are a good risk and are serious about buying
a home in today’s market.

Final Thoughts

The market is shifting, but that’s not always a bad thing. Buyers couldn’t continue paying
overinflated prices for homes and not expect for the bubble to burst eventually.
With things settling down, prices will decrease and buyers will have more options. Sellers may
wait longer for their home to sell, but everything won’t feel like such a frenzy. Instead, it will feel
like a more relaxed process where everyone can get what they want from the real estate
transaction.

If you’re ready look at the home’s on the market today, contact me today and let me help you
find the perfect home