As the market has cooled, some of the intensity buyers faced during the peak frenzy of the pandemic has cooled too. Here are just a few trends that may be beneficial when you go to buy a home today.
1. More Homes To Choose From
During the pandemic, housing supply hit a record low at the same time buyer demand skyrocketed. This combination made it difficult to find a home because there just weren’t enough homes available for sale to meet buyer demand.
According to realtor.com, the supply of homes for sale has increased by 46.8% compared to 2021. While supply is still lower than more normal years, you do have more to choose from in your home search today. That makes finding your dream home a bit less difficult.
2. Bidding Wars Have Eased
One of the top stories in real estate headlines over the past two years was the intensity and frequency of bidding wars. But today, things are different. With more options, you’ll also likely see 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 declined. In October 2022, the average was 2.4 offers per sale. In contrast, in October 2021, the average was 3.7 offers per sale.
If you tried to buy a house over the past two years, you probably experienced the bidding war frenzy firsthand, and may have been outbid on several homes along the way. Now, you have a chance to jump back into the market and enjoy searching for a home with less competition.
3. More Negotiation Power
When you have less competition, you also have more negotiating power as a buyer. During the frenzy of the past few years, more buyers were willing to skip important steps in the homebuying process, like the appraisal or inspection, to try to win a bidding war. But NAR shows the percentage of buyers waiving those contingencies is down year over year.
As a buyer, this is good news. The appraisal and the inspection give you important information about the value and condition of the home you’re buying. And, if something turns up in the inspection, you have more power today to re-negotiate with the seller.
A survey from realtor.com confirms more sellers are accepting offers that include contingencies. According to that report, 95% of sellers said buyers requested a home inspection, and 67% negotiated with buyers on repairs as a result of the inspection findings.
Bottom Line While buyers still face challenges today, they’re not necessarily the same ones you may have been up against just a year or so ago. If you’ve been outbid or had trouble finding a home in the past, now may be the moment you’ve been waiting for. Let’s connect to start the homebuying process today.
“. . . winter shoppers will see lower prices than we saw this summer. . . . On top of that, shoppers in some markets may find sellers who are more willing to negotiate on price or other contract terms than they have been in recent years, especially for a home that has been on the market for a longer period of time.” – Danielle Hale, Chief Economist, realtor.com