At long last, home buyer competition has dropped
Is the bidding war frenzy starting to calm? Some data this spring suggests that while the housing market is still red-hot, the competition is showing early signs of cooling.
Which means if you plan to buy in the next few months, you may have some breathing room at the offer table.
Costs are up
Housing prices are up 20% from the year before, and the average interest rate for a 30-year mortgage reached 5.57%, a considerable uptick from 3.29% at the start of 2022, according to Mortgage News Daily.
Buyers are less competitive
Those higher costs already seem to be influencing homebuying behavior. For the first time in six months, Redfin noted a slight drop in home offers, from 66.7% in February to 65% in March, suggesting that home offers were still pouring in, but a possible cooling of the bidding wars.
Their analysts took it as a sign that the higher costs are giving at least some buyers second thoughts about whether it’s their time to buy.
What’s next?
What does that mean for the coming months? Analysts believe the housing fervor will continue to cool. Some homeowners may decide to stay put, while first-time homebuyers may pause their house hunting.
The silver lining for buyers
If you’re planning to buy, the silver lining is a possible drop in the competition in your market. So how can you leverage that while you’re house hunting?
Above all, consult with a real estate professional. Their real-time perspective on the local market will help you shape the best offer strategy. |