Housing Market Insights: A Shift Towards Buyers' Favor
The current housing market shows promising signs for buyers!
As we see home prices hitting new highs and mortgage rates remaining steep, a balance is starting to emerge.
Navigating the housing market can feel daunting, especially with recent trends pushing home prices to unprecedented heights. According to the National Association of Realtors, the median cost of an existing, single-family home in the U.S. reached an all-time high of $426,900 in June. Despite this, there are promising signs that the market is beginning to balance, providing better opportunities for buyers. As a seasoned realtor at Cummings & Company and President of Realvolution Homes Group, I'm here to highlight these shifts and how they can benefit you.
1. Homes are Lingering on the Market Longer
One of the most telling signs of a shifting market is the increased time homes are staying on the market.
With 64.7% of homes listed for at least 30 days, up from 59.6% last year, buyers have more negotiating power. The average home sale period has increased from 35 days last year to 46 days this year. This means buyers might snag properties below the listed price, making now a great time to hunt for deals.
2. Buyers are Backing Out
Increased selectivity among buyers is another indicator of market balance.
About 56,000 home-purchase agreements were canceled in June. Buyers are becoming more discerning, often backing out due to high costs or unmet needs. This trend can create opportunities for other buyers to step in and negotiate better terms, leveraging their position.
3. Sellers Have More Competition
An uptick in housing inventory gives buyers more choices and power.
The total housing inventory rose by 3.1% from May and 23.4% from last year, with unsold inventory at a 4.1-month supply. More listings mean increased competition among sellers, providing buyers with a wider selection and better negotiating leverage.
4. Sellers are Cutting Prices
To attract buyers, more sellers are reducing prices.
In June, 19.8% of homes for sale had a price cut, the highest level of any June on record. Home builders are also joining this trend, with 31% cutting prices to boost sales. This creates a buyer-friendly environment where it's possible to find deals that were previously out of reach.
Conclusion
The housing market is showing clear signs of shifting towards a more neutral stance, offering better opportunities for buyers. From longer market times and increased buyer selectivity to more inventory and price cuts, these trends suggest it is a favorable time to consider purchasing a home. If you’re thinking about buying or know someone who is, don’t hesitate to reach out. As your dedicated realtor, I'm here to guide you through these changing times and help you make the most of the current market dynamics.
In these evolving times, it's crucial to stay informed and prepared. Whether you’re a first-time buyer or looking to invest, understanding these trends can significantly benefit your home-buying journey. Remember, I’m here to assist with any real estate needs you or your loved ones might have. Let’s navigate this market together and find the perfect home for you. Reach out today, and let’s make your homeownership dreams a reality!
Now is the perfect time to buy a home as the market shifts towards a more balanced state.
Remember, homes are lingering longer, buyers are becoming more selective, sellers face increased competition, and prices are being cut. These are clear signs that the pendulum is swinging back slightly in favor of buyers. If you're in the market or know someone who is, let's seize this opportunity together.
Source: CNBC
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Dan McDevitt
Cummings & Company Realtors
Team Leader Realvolution Homes Group
