Are you having trouble finding a home that fits your needs and your budget? If…
If you tried to buy a home during the pandemic, you know the limited supply of homes for sale was a considerable challenge. It created intense bidding wars which drove home prices up as buyers competed with one another to be the winning offer.
But what was once your greatest challenge may now be your greatest opportunity. Today, data shows a shifting real estate market where buyer demand is moderating in the wake of higher mortgage rates. Here are a few reasons why this shift in the housing market is good news for your homebuying plans.
There were many reasons for the limited number of homes on the market during the pandemic, including a history of underbuilding new homes since the market crash in 2017. As the graph below shows, housing supply is well below what the market has seen for most of the past 10 years (see graph below):
The graph above also shows a trend back up in the right direction this year. That’s because moderating demand is slowing the pace of home sales, and that’s one of the reasons housing supply is finally able to grow. For homebuyers, that means you’ll have more options to choose from, so it shouldn’t be as difficult to find your next home as it has been recently.
And, having more options may also lead to less intense bidding wars. Data from the Realtors Confidence Index from the National Association of Realtors (NAR) shows this trend has already begun. In their recent reports, bidding wars are easing month-over-month (see graph below):
If you’ve been outbid before, or if you’ve struggled to find a home that meets your needs, breathe a welcome sigh of relief. The big takeaway here is you have more options and less competition today in the shifting real estate market.
Just remember, while easing, data shows multiple-offer scenarios are still happening – they’re just not as intense as they were over the past year. You should still lean on an agent to guide you through the process and help you make your strongest offer up front. We work with several trusted partners in real estate, and we’d be happy to recommend a few great agents that can help you achieve all of your homeownership goals.
Many homebuyers gave up the search for a home during the pandemic – with lack of homes for sale, and intense competition for those that were on the market, it may have seemed impossible to buy a home. But now, in a shifting real estate market that is slowly getting back to pre-pandemic levels, opportunities arise. If you’re still looking to make a move, it may be time to pick your home search back up today. Let’s connect to kick off the homebuying process and get you preapproved for the home of your dreams!