Lack of inventory continues to rock the real estate world. According to NAR, a whopping 57% of REALTORS® cite the issue as the leading reason that clients do not complete a transaction. But this doesn’t mean sellers can do whatever they want in the current market. Although severely constricted listing inventory gave them the upper hand in the recent past, potential buyers are finding that the cost of borrowing and higher home purchase costs are putting many homes out of reach. Gone are the heydays of bidding wars and over-asking deals.
Buyers are facing financial hurdles that have them playing the waiting game. With mortgage bills 58% higher than they were last year due to rising interest rates and price appreciation, the market is leaning towards a softening. Lack of affordable housing is even more critical, as well as a further diminished rate of new construction. High inflation, rising rent, and high gas prices all combine to inhibit first-time homebuyers from being successful.
Redfin reported that 19% of sellers cut their listing price this spring. This could be good news for shoppers who were previously priced out of the pandemic’s housing boom. Inventory is expected to rise, and sellers may be looking to make a deal.
Buyers who are wanting to get in on the action this autumn and winter should pay attention to what’s happening in their local market and trust their REALTOR® to help set realistic expectations. The uncertainty of the economy means it’s more important than ever to be financially ready when making a move. Take a hard look at your budget and utilize mortgage calculators and trusted lender advice to determine what you can afford.
Sellers must prioritize making their home more appealing than ever. Staging helps highlight a home’s best features and architecture. Removing personal items and clutter is key to allowing buyers to visualize themselves living in a space. Virtual staging is also an option depending on timeframe and cost.
It’s important not to get discouraged when looking to buy or sell a home. The reality is that the market is constantly changing. With a trusted REALTOR® by your side, guiding you through the process, you’ll be able to make a move when the time is right.