Doom and gloom might be dominating real estate headlines these days, and many would-be homebuyers are feeling hopeless about their chances of getting a good deal in the wake of mortgage rate hikes, low housing inventory, and elevated home prices.
There’s no denying that the cost of buying a house has risen, but if you dig into the data, you’ll find that many homebuyers might actually be in the driver’s seat right now.
In October, home prices continued to drop from the record-high prices we saw in the summer, according to a recent report from Realtor.com®. Plus, the number of houses on the market is up nationally 33.5% year over year, according to our data. Houses are lingering on the market, too, for 51 days on average—which is 6 more days than last year. That shift means that sellers are more likely to price homes competitively.
Simply put, all of this adds up to a power shift in real estate. A year ago, sellers were calling all the shots and buyers were launching legendary bidding wars, waiving contingencies, and paying for homes in cash. But now, the shoe is on the other foot, and 92% of home sellers are accepting some buyer-friendly terms (frequently related to home inspections, financing, or appraisals), according to a Realtor.com survey.
So if you’re currently in the market for a home, here are the biggest silver linings to consider.
Home showings are down, giving buyers more power
Fewer showings mean less chaos and a saner approach to homebuying.
“For the past year, every house I put up would have an offer over the listing price within the hour,” recalls Ami DiPierro, a real estate agent with Choice Residential Real Estate in Raleigh, NC. “It was very frustrating to see a home that matched your buyer and call the agent to see when showings would begin, and learn they were about to accept an offer.
“You can get in the door now and actually look at the house without worrying about overlapping appointments and incoming bids,” adds DiPierro.
Average home prices are falling, which can balance out rate hikes
It’s never good news for buyers—or sellers—when mortgage rates go up. But it’s important to keep it in perspective, especially as home prices are falling.
“Higher interest rates have two consequences on the real estate market,” says Cam Dowski, founder of We Buy Houses Chicago. “The first advantage is that they frequently reduce housing prices, which is advantageous for buyers. The second is that they deter some customers from entering the market, which benefits those who remain. The result is reduced buyer competition, which further reduces buyer risk, broadens buyer options, and lowers property prices.”
Wave goodbye to waived contingencies
This time last year, desperate buyers were willing to waive finance contingencies, inspections, and more to snag their dream home. No more...
Posted by Realtor.com
Nov 8, 2022
By Kathleen Wilcox
