Fall is a great time to bounce back in the real estate market if you missed out on a dream property last summer.
The legion of buyers scouring the market for a new home just a few months ago has thinned out as inflation and fuel prices bite, and mortgage costs rise.
The great news this fall is that prices are now more realistic, with leading real estate site Zillow recording the first dip in values since 2012. And many sellers who’ve enjoyed two years of double-digit value growth now realise they must negotiate to strike a deal.
While rate rises by the Federal Reserve can slow transactions, many buyers are reflecting long-term confidence in the economy, bolstered by an unemployment rate of just 3.5%. Our record low was recorded in 1953 at 2.5%.
Check out my top six reasons why buyers should double down on their efforts to find a new home or re-enter the market after initial disappointments.
Stock rising
Many owners put their selling plans on ice during the past two years because of their own concerns about finding a new home. These homeowners are now entering the market, tired of their life being on hold. This emerging trend gives buyers more choices and great opportunities to negotiate.
Summer sellers
Look for homes that have been on the market since summer. With the holidays just around the corner, summer sellers start to get worried and become increasingly willing to negotiate a competitive price.
Take time
Industry data suggests homes are staying on the market longer. You can take more time thinking about each property right now; an improvement on the past two years when some buyers rushed their decision to avoid missing out.
Realistic viewings
One feature of fall buying is that properties don’t necessarily look their best. The sunshine and warm days are gone, and gardens have lost their color and leaves. So, you’ll get a much more realistic view of each property you visit.
Financial balance
It’s critical you assess your financial capacity before committing to a property. Rates may have risen but they’re actually heading toward historical norms. So, with prices dipping, you may be able to afford a better property than you think.
Your rights
Resist waiving your rights when negotiating. Always make any deal contingent on the results of a building inspection and the final approval of your loan. The slower fall market means there should be no pressure to surrender any rights.