Friday, November 4, 2022 / by Laura Larson
This year's market cooling has also resulted in a reduction in some of the ferocity purchasers experienced during the pandemic's peak frenzy. Here are just a few tendencies you should be aware of when looking to purchase a property nowadays.
1. There are more homes available.
Housing supply fell to a record low during the epidemic at the same time that buyer demand soared. Due to a lack of available properties to satisfy demand from buyers, this combination made it challenging to find a home. When compared to the same week last year, the supply of properties for sale grew by 39.5% for the week ending October 28, according to Calculated Risk.
You have more options in your hunt for a home even though it's still a sellers' market and supply is still lower than more typical levels. That makes it a little bit easier to find your ideal house.
2. Wars Over Bids Have Abated
The intensity and regularity of bidding battles have been one of the most popular real estate stories of the last two years. Today, though, things have changed. There will probably be less competition from other house purchasers if you have more selections. The National Association of Realtors (NAR) reports a decrease in the typical quantity of offers on recently sold homes. The typical number of offers for each sale in September was 2.5. In September of the previous year, there were about 3.7 offers for every transaction.
If you attempted to purchase a property over the previous two years, you undoubtedly first-hand encountered the bidding war frenzy and may have been outbid on a number of properties. You have the opportunity to return to the market at this time and take pleasure in finding a property with less opposition.
3. More force in negotiations
Additionally, you as a buyer have more negotiation power when there is less competition. In order to win a bidding war, more buyers during the past two years have been prepared to forego crucial phases in the home-buying process, such as the appraisal or inspection. However, according to the most recent data from the National Association of Realtors (NAR), fewer purchasers are waiving such conditions.
This is excellent news for buyers. You can learn crucial details about the worth and condition of the house you're buying through inspection and appraisal. Additionally, you now have more authority to renegotiate with the seller if something is discovered during the inspection.
According to a poll, more sellers are now taking contingency-free offers. In accordance with that study, 95% of sellers claimed that buyers had asked for a house inspection, and 67% claimed that as a result of the inspection's findings, the buyers had negotiated repairs.