It started out with not enough inventory, a seller's market, multiple offers, 10-20% over asking price, it was a feeding frenzy. Buyers were removing all contingencies and guaranteeing $1000s over appraised price to be the offer that was selected. Sellers were happy to get the best prices we have seen in a while. Six months later, the Feds started increasing the interest rates to stop inflation and the news outlets started sharing their "gloom and doom" rhetoric and everyone panicked!! Those buyers that had homes in escrow canceled, those who were selling, maybe took their listing off the market, to "wait and see" what would happen. Well, here we are six months later and it has been difficult to get the word out that there are OPTIONS!!! It is now a full blown buyer's market - sellers are willing to help you buy their home! 

 

Contrary to what the news would have you believe, the sky is NOT falling!! We are not headed for another crash, like 2008. We are doing things the right way, we are being smarter with loans and appraisals, etc. We are STILL 100s of thousands, yes, over 100,000 homes short on supply. The housing prices are NOT going to crash, there are still many more buyers than homes. We are experiencing a "market adjustment" from the crazy prices that we got when the interest rate was low and everyone was spending like no tomorrow earlier this year.

 

The sellers who need to sell are still selling, unfortunately, depending on their situation and urgency, they may not be able to wait out the market, inflation and interest rates, so many of them are dropping their prices - hoping for a quick sale. We don't need to do this!!! The seller can offer to "buy down" the interest rate for the buyer in the amount that they were going to reduce the price - either for the first 2 or 3 years of the loan, or for the term of the loan, so that the buyer still gets the benefit of the lower payment - to the tune of a couple of hundred ($200-400 - depending on price) dollars!!! The seller still retains the value, thus not negatively impacting neighborhood values. I will post some examples of these options next time. 

 

Many would-be buyers are saying they are waiting until the rates come down to buy. Even Dave Ramsey says it is best to buy now, while rates are down, before they go higher, DO NOT wait for them to come down. My added note: buy now while home prices have softened, there isn't the bidding war to get the home you want, while sellers are inclined to give credit to buyers to help with closing costs or to help buy down the interest rate. Most lenders are offering free (or some type of promotional price) refinancing in the next 24 months, because we KNOW the rates will come back down.

 

Contact me today so that I can help you get into a home.