Is the Shifting Market a Challenge or an Opportunity for Homebuyers?

By
Real Estate Broker/Owner with Edge Of The Beach Realty 53243

Article reprinted from Keeping Current

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 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.

The Challenge

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 2008. 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 Opportunity

But that graph 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 you, 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 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.

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.

Bottom Line

If you’re still looking to make a move, it may be time to pick your home search back up today. Partner with a real estate professional to kick off the homebuying process.

 

Posted by
Edge Of The Beach Realty
 

 

Make it a great day,

 

Joanne

 

 Joanne Gillet Owner/Broker

SRES - Senior Real Estate Specialist 

Edge Of The Beach Realty
10080 Ocean Hwy, Suite 9Pawleys Island, SC 29585
843 655 6343 / 843 360 1672
 
 

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Comments (4)

Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Joanne,

I definitely think the shifting market is bringing about many opportunities. There is never a better time to buy! Buyers have more homes to choose from, less competition and less stress! Sellers are still getting a great price, with less stress and a more win/win experience!

Aug 12, 2022 08:39 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Joanne - "shift" happens.   It always occurs as challenges and opportunities are a part of real estate as well as everyday life.  They surface and combine in all sorts of ways.  Kinda like the creature from the black lagoon.  😃

Aug 12, 2022 10:28 AM
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

This shifting market is so needed.  It's time for the Buyers to get out and Buy -- with new and more inventory becoming available and prices being reduced all around us. Now is the Time!

Aug 13, 2022 11:15 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Excellent post and information. The easy to information in a graph is a great way to share data!

Aug 16, 2022 01:57 PM