The supply of homes for sale has been increasing for the past six months. Even with the increase in higher interest rates. Sellers are rushing to get their home on the market before the market cools off.
Higher mortgage rates have caused the housing market to take a turn, and now Owners are in a hurry to find a buyer before demand weakens.
Sellers clearly see the market softening. There appears to be an increase in homes coming back on the market after pending as well. This could be due to the rise in rates, or due to sellers not exercising patience when selecting a buyer.
Six months ago, sellers had grown accustomed to seeing 8 to 15 offers on many homes. Now we’re seeing between one to three offers on a house. This decrease in activity is causing home sellers to take a step back.
While home sellers were in the driver’s seat barely six months ago, they are now seeing far less competition from buyers. Many realtors are reporting even fewer request for showings.
All this means, home sellers will need to adjust their expectations as they may not receive the windfall they expect. The bidding wars, offers of tens of thousands of dollars over asking prices, and buyers willing to waive every contingency may be off the table for now!
While it’s expected to remain a seller’s market, buyers are now struggling with higher prices and mortgage rates. So, they might have less money to put toward a home than they would have six months ago.
So, if you’re selling a home be patient, be selective, be realistic in your expectations. Most importantly talk with your realtor, and don’t get caught out in the cold by passing up a good offer!
By R. Jones
