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A Key Opportunity for Homebuyers

A Key Opportunity for Homebuyers | Simplifying The Market

Theres no denying the housing market has delivered a fair share of challenges to homebuyers over the past two years. Two of the biggest hurdles homebuyers faced during the pandemic were the limited number of homes for sale and the intensity and frequency of bidding wars. But those two things have reached a turning point.

As you may have already heard, the number of homes for sale has increased this year, and even more so this spring. As Danielle Hale, Chief Economist for realtor.com, explains:

New listingsa measure of sellers putting homes up for salewere up 6% above one year ago. Home sellers in many markets across the country continue to benefit from rising home prices and fast-selling homes. Thats prompted a growing number of homeowners to sell homes this year compared to last, giving home shoppers much needed options.

This is encouraging news. More homes coming onto the market give you a greater chance of finding one that checks all your boxes.

Buyer Competition Moderating Helps Inventory Grow Even More

Mark Fleming, Chief Economist at First American, says inventory growth is happening not just because theres an increase in the number of listings coming onto the market, but also because buyer demand has moderated some in light of higher mortgage rates and other economic factors:

There has been a pickup in the inventory that weve seen recently, but its not from a big increase in new listings . . . but rather a slowdown in the pace of sales. And remember that months supply measures the inventory of sale relative to the pace of sales. Same inventory, fewer sales, means more months supply.

Basically, the market is shifting away from the frenzy of buyer competition seen during the pandemic, and thats helping available inventory grow. In their latest forecast, realtor.com also mentions the moderation of demand as a key factor and projects the inventory growth should continue:

As rising inflation and mortgage rates bring U.S. housing demand back from the 2021 frenzy, . . . inventory will grow double-digits over 2021 and offer buyers a better-than-expected chance to find a home.

How This Impacts You

The combination of more homes coming onto the market and a slower pace of home sales means youll have more options to choose from as you search for your next home. Thats great news if youve been searching for a while with little to no luck. Just remember, there isnt a sudden surplus of inventory, just more homes to choose from than even a few months ago. So, youll still want to be decisive and move fast when you find the right home for you.

And when you do, you may be faced with less competition from other buyers too. If youve been waiting to jump into the market because the intensity of the bidding wars was intimidating or if youve been outbid on several homes, this moderation could help make the homebuying process a bit smoother. Its not that itll be easy or that bidding wars are a thing of the past thats not the case. But it wont feel nearly as impossible.

Bottom Line

As the housing market begins its shift back toward pre-pandemic levels, you could have a unique opportunity in front of you. With moderating levels of buyer competition and more homes actively for sale, your home search may have gotten a bit less challenging. Lets connect to begin the process today.

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