Buyers in the housing market have some positive news. While financing rates remain low, a shift in real estate inventory shows a trend toward increased homes on the market. With more options comes fewer bidding wars, making now the perfect time for previously reluctant buyers.
Real Estate Inventory Is Rising
According to Realtor.com, in June 2021, new listings increased 5.5% year over year and 10.9% compared with May. While these statistics for new listings are contrary to what is normally seen during the summer months, a surge in demand for larger suburban homes has largely contributed to the anomaly. With more people working and playing from home, the requirements for their home environment have changed as well. In addition, the strain on the labor market and increased cost of materials resulted in a decrease in new construction. Fortunately, recent months have also seen a rise in new housing starts.
A long-awaited real estate inventory surge is expected to carry into fall months, a welcome outlook for buyers who’ve been on the losing end of competitive bidding wars.
What Does This Mean for Potential Buyers?
With housing inventory steadily marching towards an equilibrium and mortgage rates still hovering at historic lows, now is the time for buyers to take action. Historically low mortgage rates won’t last indefinitely, and as last year has shown, the housing market is quick to shift based on a variety of unforeseen events.
As more homes come on the market, opportunity awaits buyers who are ready to act swiftly. Here are some ways buyers can be prepared for housing opportunities:
- Determine your budget – Setting a budget allows you to be realistic about what is financially best for you and your family and allows you to target your home search more effectively.
- Explore mortgage options – Interest rates are only one aspect of your mortgage. Origination fees and discount points also have to be considered, along with the length and type of mortgages available. Determine what type of mortgage best suits your needs and the best place to obtain it.
- Get a preapproval letter – A preapproval letter gives you more authority in your search. It’s one less concern on the seller’s end when deciding on an offer.
- Choose a real estate expert – An expert in the industry can help you through many of the hurdles of homeownership. From locating the home of your dreams to securing a contract, your real estate expert is your best asset in the home buying process.
- Determine your home needs and wants – Make a list of the most important aspects of your new home, followed by a list of wants. When you prioritize what you are looking for, it’s easier not to get distracted by bells and whistles that may not meet your needs. This will also help your real estate expert guide you towards the listings that provide the best match.
Buyer’s Custom Guide to Real Estate
Buying a home can be confusing, but it doesn’t have to be frustrating or hard. Shifts in real estate inventory offer a prime time for buyers. That doesn’t mean you have to do it alone. Scheduling a discovery session with a strategic adviser creates a customized plan that ensures you find the right home and win the offer. Buying a home is more than a transaction, it’s a life transition. We are here for you during this transition.
Don’t miss out on the opportunity to purchase a home while interest rates are still at historical lows. If you’re looking forward to working with an experienced buyer specialist who can help you take advantage of changing market conditions, look to the real estate experts at Path & Post. Our team of buyer specialists can help you find a better path forward to homeownership today.