Jonathan W. Spurr NMLS 304969
As we move into the heart of the summer buying season, one thing is becoming increasingly clear: the housing market is not frozen—it is simply adjusting.
Mortgage rates have remained stubbornly higher than many economists expected at the start of the year, hovering in the mid-6% range. While that has certainly impacted affordability, it has also created something buyers haven’t seen in several years: options. Inventory continues to increase in many markets, price reductions are becoming more common, and sellers are finding that realistic pricing and concessions are often necessary to attract buyers. (Reuters)
Nationally, existing home sales recently posted their strongest reading since December, showing that buyers are still moving forward despite higher rates. At the same time, inventory has climbed and home price appreciation has slowed considerably from the rapid gains of recent years. (Reuters)
Locally, we’re seeing much of the same. Well-priced homes in the entry-level and first-time buyer price ranges continue to sell, while many higher-priced homes are sitting longer and experiencing price reductions. Buyers who were frustrated by bidding wars a few years ago are now finding more negotiating power and more choices.
Many people are still waiting for rates to drop before making a move. While lower rates would certainly help affordability, the challenge is that no one knows exactly when or how much rates will improve. In the meantime, rising inventory and motivated sellers are creating opportunities that simply did not exist during the ultra-competitive markets of the past few years. (Reuters)
If you’re thinking about buying, this may be one of the best environments we’ve seen in years to negotiate price, request seller concessions, and find the right home without competing against dozens of other buyers.
As always, if you’d like to discuss your options, review current programs, or see how much home you qualify for, I’m happy to help.
Inspiring Responsible Home Ownership.