Why Now is the Time to Buy a Home
The housing market has presented a number of difficulties to purchasers in the last two years, and there's no escaping it. The restricted number of houses for sale and the regularity and intensity of bidding wars are two of the most significant barriers homebuyers confronted during the epidemic. Those two elements, however, have reached a new turning point.
“New listings–a measure of sellers putting homes up for sale–were up 6% above one year ago. Home sellers in many markets across the country continue to benefit from rising home prices and fast-selling homes. That’s prompted a growing number of homeowners to sell homes this year compared to last, giving home shoppers much needed options.”
This is fantastic news. The number of houses coming on the market increases your chances of finding one that meets all your requirements.
Buyer Competition Moderating Helps Inventory Grow Even More
Inventory growth is occurring, according to the chief economist, Mark Fleming, at First American, not just because there's an increase in the number of listings coming onto the market, but also due to decreased buyer demand in light of 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. And remember that months’ supply measures the inventory of sale relative to the pace of sales. Same inventory, fewer sales, means more months’ supply.”
In other words, the market is moving away from the buyer competition that occurred during the pandemic, which is allowing more inventory to enter the market. According to their most recent forecast, realtor.com believes that supply moderation will be a significant indicator moving forward and that inventory expansion should continue:
“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
When there are more houses coming on the market and a slower rate of home sales, you'll have more alternatives to pick from while looking for your next house. That's fantastic news if you've been looking for a long time with little luck. Simply remind yourself that there isn't an overabundance of goods right now; rather, there are many more options than ever before. So, when you discover the perfect house for you, be quick and decisive.
When you do, however, you may find yourself competing against less competition from other purchasers. If you've been waiting to get into the market because the bidding wars were too fierce or if you've been outbid on a number of properties, this moderation might make housebuying easier. It's not that bidding wars are a thing of the past, and it won't be easy. But it won't seem nearly as tough.
As the housing market begins to recover from the pandemic, you could be in a position to take advantage of it. With modest levels of buyer competition and more properties accessible for sale, your quest for a home may have become simpler. Connect with The Perreault Group and begin the process today.