More Selection For Buyers
In a growing number of local markets, buyers have more time to think about a home before they make a decision on whether to purchase it. Last year, that often wasn't a likely luxury.
"Once you as a potential buyer found a house that met your needs, you had to jump on it right away," said frank nothaft, chief economist for freddie mac. "One thing that we're seeing nowadays -- compared to six or 12 months ago -- is many markets where homes are staying on the market longer."
Home sales are expected to decline in 2006, yet the year should finish as the third strongest on record, according to a midyear report given by Nothaft earlier this month. With fewer sales, more homes are sitting on the market.
It's a change of pace for agents who not long ago didn't have many properties to show their clients, said David Drinkwater a realtor in Scituate, Mass., and regional vice president for the National Association of Realtors.
"Two or three years ago, there was a great deal of reacting in the marketplace because we had a smaller inventory pool to work with," Drinkwater said. "That's not to say that a well-priced property won't move quickly in this environment", he said, "but buyers need to educate themselves so they can recognize a housing gem when they see it. "
Now More Room to Negotiate
Current Market conditions also afford consumers a better opportunity to negotiate.
This market is encouraging everybody to slow down and take their time, according to Victoria Lorusso at Keller Williams. In that time, buyers have more of a say at the bargaining table.
In fact, getting a fair deal is even more of a priority for homeowners who can no longer bank on high appreciation rates to save them if they pay too much, Drinkwater said. if you slightly overpaid in a bidding war at the height of the real estate boom, high appreciation rates helped correct the error, he said. In many markets there is now no such safety net.
Average home value appreciation nationwide should be around 7% for the year, and is predicted to slow even further to 6.2% in 2007, according to Freddie Mac. Local markets vary, however, and even as many markets are cooling, others are still on an upward climb.
Even if you, as a buyer, have the benefit of being more of a haggler than you could have been last year, still remember to look for a place that meets your needs and your budget. Do the calculations and lay the groundwork before your house hunt ever begins. A well priced home in this market will not loose value. So go ahead, and find the home of your dreams!
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