09/08/2022
Over the past few months, the higher cost of homes plus higher interest rates were causing folks to rethink their investment purchases. With those two combined, the housing market was Definitely due for a pull-back! What's even more interesting, I think the pull-back is occurring right now.
According to Bloomberg, "[t]he supply of homes for sale across the US grew at a record rate last month, another sign that higher mortgage costs are cooling down the housing market". This situation is as simple as a standard supply-demand curve. More supply of homes out there (listings), represents less of a demand for folks wanting to buy homes. Sellers of homes are having No Choice, but to lower the cost of their homes to increase buyer demand. This not only makes the seller happy because their home will get sold, but buyers become happy too, due to a discount in the home purchase price. YES, this does affect one's monthly mortgage payment.
What's my take on this situation? Well, if someone has been looking for a new home but they found the homes they wanted were too expensive, it's time to begin your search again. Briefly visit your favorite home-shopping website, and notice how long the higher-priced homes are on the market; they are not selling. That is where you will find your homebuying opportunity 😀
If you are seeing the trend I am seeing and are ready to shop, let's get you pre-approved so you truly understand how much home you can shop for. Your realtor will thank you!
The slowdown in demand means more properties are being left on the market. That should give buyers some negotiating power, Realtor.com economist says.
