According to Knock, the housing market may be tilting in favor of buyers.
A recent report says that Federal Reserve interest rate increases and higher mortgage rates have accelerated the rebalancing of the housing market.
Top Agent Insights Report by HomeLight for the fall, which polled 1,005 real estate agents between July 25 and August 14, says higher mortgage costs have forced some buyers out of the market. This means that people who can afford housing at current lending rates are benefiting from a more balanced housing market, which is driven by increased housing supply and lower consumer demand, which has also helped lower home prices, the report says.
While not exactly a buyer’s market, the number of realtors who described their current local market as a seller’s market has dropped to 51%, down from 95% just three months before the survey was conducted.
“The fact that many homes are no longer sold overnight with repeated [asking] Quotations make many sellers nervous about the direction of the market, leading to lower prices,” said Christopher Terry, HomeLight real estate agent. “Buyers are seeing this happening and now believe that waiting can save them money, so the urgency of a quick fix is softening.
“This leads to stockpiling as sellers quickly try to catch what’s left of the sellers’ market,” Terry continued.
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Signs that the balance is returning
This fall, sellers can expect to see fewer competitive offers that exceed the asking price, no contingencies and all cash offers, the report says. Instead, 90% of real estate agents said price cuts have become more common. That’s up from 34% who said the same thing earlier this year in the second quarter.
The report said most real estate agents said they expected the market to return to pre-pandemic normality, with 55% of agents expecting the biggest decline in home prices in markets that quickly warmed up during the pandemic. This included Austin, Texas, Boise, Idaho, and Phoenix, Arizona.
“Houses have been on the market longer, prices have been dropping more often, and buyers are now asking for concessions to help cover the cost of closing or buying back interest,” said Andrea Castaneda, HomeLight real estate agent.
The shift in supply and demand means homes today must be in optimal condition or have unique amenities to attract buyers, Castaneda added.
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Buyer’s market on the horizon?
Based on housing trends, the market may be shifting in favor of buyers., according to fintech real estate company Knock.
Knock said housing inventories are rising at a time when home sales are taking longer. in his latest real estate forecast. At the same time, the median realized price has fallen from its peak in May and June of this year. Such dynamics indicates the emergence of a buyer’s market, the forecast says.
“With the national market forecast to be equally favorable for sellers and buyers by next June, potential property investors and homebuyers could see the most favorable national market in years,” Knock said in a report. “As more markets gradually shift towards buyers, median selling prices are expected to continue to decline, but only up to a point.”
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Credit: www.foxbusiness.com /