Mortgage Loan Assumption At a Glance Mortgage Loan assumption lets a buyer take over the…
Is the Housing Market Changing?
The national economy is a complex system but there are a few signs that potential homebuyers and sellers can look for that show the housing market is shifting. For the past few years, the home market in the U.S. has been a seller’s market. This means that conditions were generally more favorable for sellers than buyers. Is this changing?
Signs the Housing Market Might Be Changing
Housing Inventory
One of the biggest signs that the housing market is changing is looking at the available inventory. In a seller’s market, there are more buyers than available homes for sale. In a buyer’s market, the reverse is true. When you start to see inventory go up but the number of people looking to buy a home remains the same, chances are that the market is changing.
Keep in mind that this applies to the same area over time. That means that you can’t compare inventory in New York City during one month to the Inventory in rural Iowa a few months later. It is best to look at individual cities and neighborhoods across multiple months and years to get the most accurate picture.
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Above Asking Price Offers
Buyers over the past few months have needed to offer more money than the seller initially listed for a home. Buyers have gotten into bidding wars that escalated home prices. Why did this happen? Simply, there was so much competition for the homes on the market that buyers were willing to up their offers to appeal to sellers. Interest rates were also very low, which made it an appealing time to buy.
When fewer offers come in, buyers don’t need to pay more to stay competitive. If offers start to come in at the offering price or lower, things are likely changing to be more favorable to buyers.