Notice To All Buyers!
Welcome back to the 2005-2006 real estate market, where a lack of inventory wreaked havoc on a buyer’s ability to buy a home. Do you remember the myriad of frustrations facing buyers?
- Sales increasing 13.5% year over year, (NAR statistics) with all the best properties selling, leaving little or no good inventory to choose from
- The buyer’s market of the past 7 years is now turning into a seller’s market with more and more sellers unwilling to drop prices and getting even more stubborn by the day
- No time to make a decision on a home, as the good ones seemed to be snatched up overnight
- Having to contend with multiple offers on properly priced homes
- Mortgage rates rising almost weekly, up from a low of 3.35% in early may to nearly 4.6% now
- Home prices increasing by double-digits with median prices up from $187,800 last July, to $213,500 this year
- Housing affordability dropping at what seems to be the blink of an eye
- Increased competition as the economy improves and new households are formed
Yup, you got it. If all of the above hasn’t yet happened in your town, expect to see these situations in the near future. If they’ve already begun to happen, brace yourself. With the lack of inventory and increasing demand, things are only going to get worse. And, how can we be so sure our forecast is accurate? Between pent-up buyer demand, new families being formed, aging baby-boomers ready to retire and few houses built over the past 6-7 years to keep up with the growing population, you would have to be blind not to see the writing on the wall. All of the indicators are there. IF you wait any longer, the choice properties will be gone, and you know what comes next;
YOU GET LESS AND PAY MORE!
So, what can you do as a prospective buyer to prepare yourself for the new challenges you will be facing?