If you tried to buy a home during the pandemic, you know the limited supply of homes for sale was a considerable challenge. It created intense bidding wars, which drove home prices up as buyers competed with one another to be the winning offer.
But what was once your most significant challenge may now be your greatest opportunity. Today, data shows buyer demand is moderating due to higher mortgage rates. Here are a few reasons why this shift in the housing market is good news for your home buying plans.
The Challenge
Since the 2008 market crash, many reasons have caused the limited number of homes on the market. As the graph below shows, the housing supply is well below what the market has seen for most of the past ten years (see graph below):
The Opportunity
But that graph also shows a trend back up in the right direction this year. That’s because moderating demand is slowing the pace of home sales, and that’s one of the reasons the housing supply is finally able to grow. That means you’ll have more options, so it shouldn’t be as difficult to find your next home as recently.
And having more options may also lead to less intense bidding wars. Data from the Realtors Confidence Index from the National Association of Realtors (NAR) shows this trend has already begun. In their recent reports, bidding wars are easing month-over-month (see graph below):
If you’ve been outbid or struggled to find a home that meets your needs, breathe a sigh of relief. The big takeaway here is you have more options and less competition today.
Just remember, while easing, data shows multiple-offer scenarios are still happening – they’re just not as intense as they were over the past year. It would be best if you still leaned on an agent to guide you through the process and help you make your most substantial offer upfront.
Bottom Line
If you’re still looking to make a move, it may be time to pick your home search back up today—partner with a Martino Realty Group real estate professional to kick off the home buying process.
