Is the Shifting Market a Challenge or an Opportunity for Homebuyers? | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
Is the Shifting Market a Challenge or an Opportunity for Homebuyers? | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
If you tried toĀ buy a homeĀ during the pandemic, you know the limited supply of homes for sale was a considerable challenge. It created intense bidding wars which droveĀ home pricesĀ up as buyers competed with one another to be the winning offer.
But what was once your greatest challenge may now be your greatest opportunity. Today, data showsĀ buyer demandĀ is moderating in the wake of higher mortgage rates. Here are a few reasons why this shift in theĀ housing marketĀ is good news for yourĀ homebuying plans.
The Challenge
There were many reasons for the limited number of homes on the market during the pandemic, including aĀ history of underbuildingĀ new homes since the marketĀ crash in 2008. As the graph below shows, the housing supply is well below what the market has seen for most of the past 10 years (see graph below):
The Opportunity
But that graph also shows a trend back up in the right direction this year. Thatās because moderating demand is slowing theĀ pace of home sales and thatās one of the reasons the housing supply is finally able to grow. For you, that means youāll haveĀ more optionsĀ to choose from, so it shouldnāt be as difficult to find your next home as it has been recently.
And having more options may also lead to less intense bidding wars.Ā DataĀ from theĀ Realtors Confidence IndexĀ from theĀ National Association ofĀ RealtorsĀ (NAR) shows this trend has already begun. In their recent reports, bidding wars are easing month-over-month (see graph below):
If youāve been outbid or struggled to find a home that meets your needs, breathe a welcome sigh of relief. The big takeaway here is you have more options and less competition today.
Just remember, while easing, data shows multiple-offer scenarios are still happening ā theyāre just not as intense as they were over the past year. You should still lean onĀ an agent to guide you through the process and help you make your strongest offer upfront.
Bottom Line
If youāre still looking to make a move, it may be time to pick your home search back up today. Letās connect to kick off the homebuying process.
Call Christophe Choo at (310) 777-6342 to tour your future home "HERE"or click "HERE"to estimate your home value.