The sellers’ market is cooling off a bit. After more than a year of sellers naming their price and getting it, the housing market is finally showing signs of slowing down. Homes are lingering on the market slightly longer now causing seller concerns.
With the fed increasing mortgage rates by more than two percentage points this year, the high price of financing a home has push many buyers to the sideline. Due to this shift many sellers are reducing their asking price.
Sellers had gotten use to homes selling quickly, and often resulting in bidding wars. Higher rates pushing buyers out of the market, and more homes coming on the market lowering prices is the only option for many sellers.
If mortgage rates were down more than two percentage points, instead of up more than two percentage points the boom we experienced over the last two years would still be going strong. This resulting shift means that buyers and sellers are on more equal footing now. Buyers’ ears are perking up as they listen for a clue to get back into the game.
If you can get back into the game, now might be your chance. Many buyers took themselves out of the market because of the vicious competition. Buyers were growing weary of losing house after house because of the strong sellers’ market.
There is a possibility of mortgage rates rising again, but if you wait to see if rates will rise, it could be a year or more before you can re-enter the game.
I believe two years of owning at a slightly higher rate, as opposed to renting for two years is still a better option for most.
The ball is in your court!
By R. Jones
