Buyers are becoming discouraged there are not enough homes on the market, especially, in certain price ranges. When they do find something they want, there may be multiple offers and they end up losing to another buyer.
Some buyers after experiencing several of these instances have decided to wait until the market changes. It is understandable but it may be a very long wait as well as being a very costly decision.
Inflation is affecting all sectors of the economy; prices on food, cars, and electronics are going up as well as housing and mortgage rates. Home prices rose 20.2% year over year in May 2022 over 2021, according to a recently released CoreLogic report.
The advantage to current homeowners wanting to move up is that their home is now worth more and it takes the sting out of the price they will have to pay for a larger home.
Unfortunately, first-time buyers and those who don’t currently own a home are seeing the prices continue to increase at a rate many Americans have never seen before. Waiting is most probably going to make it less affordable.
It is true that housing inventory is at very low levels but over six million homes sold last year so there was enough inventory available for six million buyers. For buyers, the problem was they sold fast and there was a lot of competition. The advantage for sellers is they sold fast and there was a lot of competition that increased the price they received.
It may not be as easy as if there were four to six month’s supply of homes for sale but when you purchase a home, these same dynamics will be working in your favor to build your equity with appreciation.
Successful buyers are positioning themselves to act decisively when the new listings hit the market.
- Working with a trusted real estate professional
- Pre-approved by a local lender
- Developed a plan to write a competitive offer
- Determined their limits financially and emotionally.
Six million people bought homes last year and you can be among the fortunate ones who buy one this year. Be committed to what it takes in a highly competitive market. Surround yourself with a competent and confident team that will produce the results you want.