3 Trends That Are Good News for Today’s Homebuyers
It is becoming harder to afford a home nowadays with higher mortgage rates increasing, but there is still good news for those looking to buy a home!
Since the market has cooled down a bit this past year, here are a few trends that can benefit you when you go to buy a home.
More Homes to Choose From
The pandemic has been one of the hardest times in history for the market - the housing supply hit its lowest record while the buyer demand for homes increased drastically like it never has been before. Therefore, there were not enough homes to meet buyer demand, thus making it more to difficult for people to find a home. The supply of homes for sale increased by 39.5% for the week of October 28 coming to an end compared to the same week last year, according to Calculated Risk.
The good news for you is that you have more homes to choose from even with supply being lower than more normal levels and it being a sellers’ market.
2. Bidding Wars Have Eased
Over the past two years, the top stories have consisted of the intensity and frequency of bidding wars. Things are different in today’s market: we have more options with more likely less competition from other buyers looking for homes. According to the National Association of Realtors (NAR), the average number of offers on recently sold homes has decreased. The average number of offers was 2.5 per sale in the month of September alone. Last September , the average number of offers per sale was 3.7.
Over the past couple of years, you may have experienced the bidding war frenzy at first sight and could have been outbid on many homes along the way. Not to worry! You are now able to look for more homes on the market now and be able to search for a home with less competition at hand.
3. More Negotiation Power
You’re at luck! By having less competition in the real estate market to buy a home, you have more negotiating power as a buyer. You would be able to skip steps in the homebuying process such as an inspection or appraisal like other buyers have done in the last two years. By skipping these steps, you are more likely to win the bidding war. The latest data from the National Association of Realtors (NAR) shows that the percentage of buyers waiving those contingencies is going down.
This is good news for you as a buyer! The inspection and appraisal give you important information you should know about the condition and value of the home you are buying. Therefore, if something were to show up in the inspection, you would be able to have more power to renegotiate with the seller.
More sellers nowadays are accepting offers that include contingencies today according to a survey from realtor.com. According to the survey’s report, 95% of sellers stated that buyers requested a home inspection, while 67% negotiated with buyers on repairs as a result of the inspection findings.
Conclusion
The homebuying process has gotten easier than how it used to be even a year or so ago. You would be able to look for and buy a home today, making it much easier than it may have been to buy a home in the past. Call me today so we can book an appointment and I would be more than happy to help you out! (310) 519 - 7670