This summer is off to a sizzling start with temperatures and heat indexes rising. But what about the housing market? Are prices still rising?
We’re seeing a few signs that suggest the housing market is cooling off – which is great for BUYERS and still great for SELLERS!
1- Houses are staying on the market longer. More days on the market suggests that there are FEWER BUYERS. It can also mean that home prices are too high and aren’t attracting the right buyers until the Seller lowers the price. Until recently, buyers had to put offers on homes as quickly as possible–sometimes without even seeing them first–and for inflated prices if they wanted a chance to beat out other buyers.
2- Higher mortgage rates mean FEWER QUALIFIED BUYERS – During the pandemic, mortgage rates were the lowest they have been in over 50 years! When mortgage rates are lower, buying a home is more affordable. Now that the rates have gone back up, a payment for a $500,000 home has increased almost $800 per month compared to buying that same home 2 months ago. Not as many people can afford the extra payment each month.
3- Higher mortgage rates mean FEWER BIDDING WARS – During the past couple of years, there have been more people looking to BUY homes than there have been SELLERs. While the mortgage rates were low, bidding an extra $50,000 on a house to try to “win” made sense to a lot of buyers because it would only increase their mortgage payment $200/month. With increased rates, the difference is closer to $300/month. Not as many people are willing to pay a premium for a home with this difference in monthly payment.
Why this “cool-down” is great for BUYERS: If you’re a qualified buyer with a steady income, you have a good chance of being one of only a handful of candidates for a particular home.
Contact us today to learn about how:
– you can be sure to stand out as a qualified buyer!
– we can help you be sure not to bid an inflated price for a home!
Why this “cool-down” is also great for SELLERS: We are still in a “seller’s market” because there is a lower supply of homes than there is a demand for homes. If you’re hoping to get the highest and best price possible for your home, don’t wait until the market balances out and you’re not the one with leverage.
Contact us today to learn about how we can help you:
– expertly market your home to attract the maximum number of buyers.
– expertly price your home to attract the maximum number of qualified buyers.
