If you are a serious home buyer looking to buy a home in today's market, we have 3 good news for you.
1. More Options
With buyer demand skyrocketing while the housing supply really low, the past couple of years have been very challenging for home buyers. But that's no longer the case this time around. An increase of 39.5% in housing inventory can be seen for the week ending October 28 compared to the same week in 2021, according to a study conducted by Calculated Risk. This means home buyers have more options in choosing the best home that suits their needs.
2. Less Competition
Compared to the last two years' low supply and intense competition fueling record-high prices, the market is finally on track to become more balanced. With more options available, bidding wars have eased. Now you can enjoy browsing the real estate market without going through the bidding war frenzy.
3. More Negotiation Power
With bidding wars easing, buyers regain their negotiating power. Numerous buyers were willing to waive appraisals or inspections in the past couple of years to avoid being outbid on a home they like. Recently, the percentage of buyers waiving those contingencies went down, as shown by the latest data from the National Association of Realtors (NAR).
Appraisals and Inspections are two essential steps in the home buying process. It provides the home buyer with information about the value and condition of the home. With re-balancing the housing market, buyers now return to the negotiating table. In a survey conducted by realtor.com, data shows that sellers now had to make compromises to close a transaction, like paying for repairs or closing costs, dropping the price to match the appraisal, and being more flexible with the closing timeline.
Challenges are to be expected with any real estate transaction. But if you are a home buyer in today's market. You can be assured that you now have more options, less competition, and more negotiation power as compared to the past years' heated real estate market.