A Key Opportunity for Homebuyers

Dated: June 30 2022

Views: 24

A Key Opportunity for Homebuyers

There is no doubt the housing market has brought a fair share of challenges to homebuyers over the past two years. During the pandemic, when everyone was told to remain contained at home, the number of houses for sale was very limited, pushing buyers into intense bidding wars. If you tried to buy then, but were pushed out of the market, let’s talk!

However, you may have noticed that those two things have reached a turning point.

As you may have already heard, the number of homes for sale has increased this year, and even more so this spring. As Danielle Hale, Chief Economist for realtor.com, explains:

New listings–a measure of sellers putting homes up for sale–were up 6% above one year ago. Home sellers in many markets across the country continue to benefit from rising home prices and fast-selling homes. That’s prompted a growing number of homeowners to sell homes this year compared to last, giving home shoppers much needed options.”

This is encouraging news. More homes coming onto the market give you a greater chance of finding one that checks all your boxes.

Buyer Competition Moderating Helps Inventory Grow Even More

Mark Fleming, Chief Economist at First American, says inventory growth is happening not just because there’s an increase in the number of listings coming onto the market, but also because buyer demand has moderated some in light of higher mortgage rates and other economic factors:

There has been a pickup in the inventory that we’ve seen recently, but it’s not from a big increase in new listings . . . but rather a slowdown in the pace of sales. And remember that months’ supply measures the inventory of sale relative to the pace of sales. Same inventory, fewer sales, means more months’ supply.”

Basically, the market is shifting away from the frenzy of buyer competition seen during the pandemic, and that is helping available inventory to grow. In their latest forecast, realtor.com also mentions the moderation of demand as a key factor and projects the inventory growth should continue:

As rising inflation and mortgage rates bring U.S. housing demand back from the 2021 frenzy, . . . inventory will grow double-digits over 2021 and offer buyers a better-than-expected chance to find a home.

 

How This Impacts You

The combination of more homes coming onto the market and a slower pace of home sales means you’ll have more options to choose from as you search for your next home. That’s great news if you’ve been searching for a while with little to no luck. Just remember, there isn’t a sudden surplus of inventory, just more homes to choose from than even a few months ago. So, you’ll still want to be decisive and move fast when you find the right home for you.

And when you do, you may be faced with less or no competition from other buyers. If you’ve been waiting to jump into the market because the intensity of the bidding wars was intimidating or if you’ve been outbid on several homes, it is time to start again. This moderation could help make the homebuying process a bit smoother. It’s not that bidding wars are a thing of the past but it will feel a lot easier!

Bottom Line

As the housing market begins its shift back toward pre-pandemic levels, you could have a unique opportunity in front of you. With moderating levels of buyer competition and more homes actively for sale, your home search may have gotten a bit less challenging. Reach out to a trusted real estate professional to begin the process today.

 

Blog author image

Véronique Nelson

Welcome to Weichert! My wish is to bring you the “Joie de vivre” of owning the property that suits you and brings you the wellness of truly being home. Over 21 years ago I chose Hillsboro as my ....

Latest Blog Posts

A Key Opportunity for Homebuyers

A Key Opportunity for HomebuyersThere is no doubt the housing market has brought a fair share of challenges to homebuyers over the past two years. During the pandemic, when everyone was told to

Read More

Love Letter in Real Estate Transaction

Love Letter in Real Estate TransactionLove letters are back, but should you use them when making an offer?You may have heard that Oregon had recently banned the use of love Letter as part of an

Read More

2022 Design Trends for a balanced life

There is no doubt, 2022 will be a colorful year!  The new year is the perfect time to consider a home renewal.  You do not need to start long and costly renovation, in order to give your

Read More

This unique market

Boris BuzanReal Estate Consultant“YOU CAN CALL, YOU CAN TEXT, YOU CAN EMAIL, YOU CAN FACETIME!”boris.real.estate@gmail.com (971) 268-3262Real Estate 101 ReportShould I wait out this

Read More