Cervone Deegan + Associates can tell you that despite the recent changes with mortgage rates rising there are some positive things happening that are good news for today’s buyers. Let’s not forget that the market had been going abnormally strong for years but primarily in the favor of sellers. With the recent cooling off there are now some benefits for buyers looking to buy their next home. They are as follows.
More Homes On The Market
When the pandemic hit we had an extremely low housing supply while buyer demand had increased even more so. This caused the perfect storm of making buying even more difficult with bidding wars galore. Now that all has changed. According to a statistic shared by Calculated Risk, inventory levels have increased by nearly 40% for the last week in October compared to the same period last year for example. While it still is more of a seller’s market, this helps even the playing field when looking for your new home.
Bidding Wars Have Slowed
More Negotiating Power
Adding to the less competition benefit, this also means buyers will have more negotiating power. This will help with the obvious things like an agreed-upon purchase price, but this also means fewer buyers will forego the important steps in the home buying process like inspections or other important contingencies. In fact, a recent survey from realtor.com confirms more sellers are accepting offers that include contingencies these days. According to that report, 95% of sellers said buyers requested a home inspection, and 67% negotiated with buyers on repairs as a result of the inspection findings.
Ultimately buyers will still face some challenges these days but at the same time, some of the challenges that had been troubling in recent years have been easing. Contact us today if you are looking to begin your home search and allow Cervone Deegan + Associates to help!