The market suddenly has a different vibe and you can feel the caution in the air – and that’s great news if you’re a motivated buyer.
When others worry and waiver, opportunities open up for the truly committed buyer.
This may feel counterintuitive given the series of mortgage rises we’ve seen, but as an experienced agent in our neighborhood I’ve seen this happen time and again.
My network around the US suggests many folks have frozen because of the rate rises designed to cool our inflation rate.
So, you should be thinking: “No problem – that gives me a better chance to find my dream property without competing with a dozen cashed-up buyers”.
The statistics indicate you’re in a prime position.
April sales for new homes dropped 16.6% to be at their lowest pace for two years. The purchase of existing homes has fallen away for the third consecutive month, says the National Association of Realtors.
The rise in the average mortgage rate to 5.25% might have even dampened your mood, but it’s still within historical norms for America.
Other numbers are in your favour, too, such as an 8% increase in the national housing supply, which is a price-cooling factor. The supply of new homes hasn’t been this strong for 13 years.
As a buyer now, you’ll surely discover red-hot opportunities but without the red-hot competition.
Below, I’ve listed some key observations to help you find the home of your dreams. In the meantime, if I can help you with your property-buying journey, and sell your existing property, please do not hesitate to contact me.
Be ready
Get those finances lined up. While homes are no longer selling within 13 days (as some areas have experienced) you still cannot delay. You’ll likely have a 30-day window on average.
What’s hot
The lower end of the market is still hot. Millennials and Generation Z buyers who have good jobs are unworried by the Fed hiking rate rises.
Popular property
Multi-generational homes remain popular, especially if they can accommodate two or three generations.
Big demand
Home offices remain in big demand. Many rival buyers are seeking to reinvent their lifestyle by working from home, and they’re paying a premium for this feature.
Family ties
Re-location has become popular with buyers wanting to move closer to family – it’s a post-Covid thing, for sure, so the mortgage rate has less influence on them.