Current Market Trends

We have seen the residential real estate market cool overall in the last few months. The craze of a hot seller’s market that we experienced has calmed as well. For buyers, there are some positive aspects to the current market conditions.

More Homes Available

During the pandemic, housing supply hit a record low at the same time buyer demand skyrocketed. This combination made it difficult to find a home because there just wasn’t enough inventory to meet buyer demand. 

Supply is still low overall. We have about a three-month supply on a national average, which is about half of what we need for a balanced market. But even though it is still technically a sellers’ market from a supply perspective, buyers do have more homes to choose from in their search than earlier in 2022.

Fewer Bidding Wars

If you tried to buy a house over the past two years, you probably experienced the bidding war frenzy firsthand and may have been outbid on several homes along the way. According to the National Association of Realtors (NAR), the average number of offers on recently sold homes has declined. Now buyers have an opportunity to enter the market with less competition.

Negotiating Power

With less competition comes more negotiating power. Over the last two years, many buyers were willing to waive contingencies with their offer or even skip steps in the homebuying process, such as ordering inspections, in an effort to win the deal. But NAR reports that the percentage of buyers waiving those contingencies is decreasing. This is a positive trend for buyers, since results of appraisal reports and inspection reports have the potential to open renegotiations with the seller.

A recent survey from realtor.com confirms that more sellers are accepting offers that include contingencies. According to the survey report, 95% of sellers said buyers requested a home inspection and 67% negotiated with buyers on repairs as a result of the inspection findings. Realtors in the Granite Bay and surrounding areas are experiencing this trend with their transactions as well.

While some buyers are choosing to hold off on purchasing until interest rates decrease, others have no option due to work, lifestyle, or life changes and must enter the buying pool. For those who do choose to purchase now, there are some definite advantages in the current market. The first step is to contact your lender to see what you can afford and what it will cost you. If you don’t have a lender, ask your trusted realtor for recommendations.

 

Debbie Austin is a realtor associate with Keller Williams, Roseville and has been helping clients buy and sell property in the area for 18 years. If you have a specific real estate question you wish to see addressed, contact Debbie at debbieaustin@kw.com or debbieaustinrealty.com.