While higher mortgage rates are creating affordability challenges for homebuyers this year, there is some good news for home shoppers.

With the rise in interest rates, some of the intensity buyers faced during the peak frenzy of the pandemic has cooled. This provides buyers with more opportunity and greater chances of success for getting their offers accepted. Here are 3 trends that may benefit you:

  1. More Choices in Homes
    During the pandemic, housing supply was at a record low. At the same time, buyer demand skyrocketed. This combination made it difficult to find a home because there weren’t enough properties to meet buyer demand. Lately, however, the market is re-adjusting to pre-pandemic levels. There are more homes on the market, homes are taking a bit longer to sell and this means buyers can be more picky.

  2. Fewer Bidding Wars
    The intensity and frequency of bidding wars was a frequent topic of discussion. But today, things are different. With an increase of homes to choose from, buyers are more selective in the homes that they put offers on. As such, you're likely to still encounter multiple-offer situations on homes that are move-in ready and dressed up to the nines.

    If you tried to buy a house over the past several years, you probably experienced the bidding war frenzy firsthand and may have been outbid on several homes along the way. Now, you have a chance to jump back into the market and search for a home with less competition.

  3. More Negotiation Power
    When you have less competition, you'll also have more negotiating power as a buyer. Over the last two years, more buyers were willing to skip important steps in the home buying process, like the appraisal or inspection (eek! not recommended), to try to win a bidding war. But in the latest data from the National Association of Realtors (NAR) the percentage of buyers waiving those contingencies is going down.

    A survey from realtor.com confirms more sellers are accepting offers that include contingencies today. According to that report, 95% of sellers said buyers requested a home inspection, and 67% negotiated with buyers on repairs as a result of the inspection findings.

Bottom Line
While buyers still face challenges today, they’re not necessarily the same ones you may have been up against just a year or so ago. If you were outbid or had trouble finding a home in the past, now may be the moment you’ve been waiting for. Let’s connect to start the home buying process today!