A Key Opportunity for Homebuyers
There’s no denying the housing market has delivered a fair share of challenges to homebuyers over the past two years. A limited number of homes for sale and bidding wars. But those two things have reached a turning point.
The number of homes for sale has increased this year. This is encouraging news. More homes coming onto the market give you a greater chance of finding one that checks all your boxes.
Buyer Competition Moderating Helps Inventory Grow Even More
Mark Fleming, Chief Economist at First American, says “inventory growth is happening not just because there is an increase in listings coming onto the market, but also because buyer demand has moderated some due to higher mortgage rates and other economic factors.” “There has been a pickup in the inventory that we’ve seen recently, but it’s not from a big increase in new listings….but rather a slowdown in the pace of sales”
Basically, the market is shifting away from the frenzy of buyer competition seen during the pandemic. That’s helping available inventory to grow.
“As rising inflation and mortgage rates bring U.S. housing demand back from the 2021 frenzy, inventory will grow double-digits over 2021 and offer buyers a better-than-expected chance to find a home”
How This Impacts You
The combination of more homes coming onto the market and a slower pace of home sales means you will have more options to choose from. That’s great news if you have been searching for a while. Just remember, there isn’t a sudden surplus of inventory, just more homes to choose from than a few months ago. Be decisive and move fast when you find the right home.
And, when you do, you may be faced with less competition from other buyers. If you have been waiting to jump into the market because the intensity of the bidding wars was intimidating or if you have been outbid on several homes, this moderation could help make the process a bit smoother.
Bottom Line
As the housing market begins its shift back toward pre-pandemic levels, you could have a unique opportunity in front of you. With moderating levels of buyer competition and more homes actively for sale, your home search will be less challenging. Let’s connect to begin the process today! Ben Keeney 203-313-0013