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If you tried tobuy a homeduring the pandemic, you know the limited supply of homes for sale was a considerable challenge. It created intense bidding wars which drovehome pricesup 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 showsbuyer demandis moderating in the wake of higher mortgage rates. Here are a few reasons why this shift in thehousing marketis good news for yourhomebuying plans.
There were many reasons for the limited number of homes on the market during the pandemic, including ahistory of underbuildingnew homes since the marketcrash in 2008. As the graph below shows, housing supply is well below what the market has seen for most of the past 10 years (see graph below):
But that graph also shows a trend back up in the right direction this year. Thats because moderating demand is slowing thepace of home salesand thats one of the reasons housing supply is finally able to grow. For you, that means youll havemore optionsto choose from, so it shouldnt 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.Datafrom theRealtors Confidence Indexfrom theNational Association ofRealtors(NAR) shows this trend has already begun. In their recent reports, bidding wars are easing month-over-month (see graph below):
If youve been outbid before or youve 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 theyre just not as intense as they were over the past year. You should still lean onan agentto guide you through the process and help you make your strongest offer up front.
If youre still looking to make a move, it may be time to pick your home search back up today. Lets connect to kick off the homebuying process.
