It’s no secret that the real estate market has become competitive for buyers who are in the market to purchase a home. From the unpleasantness of multiple competing offers and rising prices it’s understandable that buyers may want to wait out the market, despite the fact that interest rates are at historically low rates. As a buyer it’s a lot more pleasant to purchase a home when there’s an abundance to choose from and you’re not competing against other buyers for the same home.
Many people think waiting for a Buyer’s Market is the better time to buy a home however, that’s not really the case. Home values actually decline in a Buyer’s Market because there are more homes for sale than there are buyers to buy them. While that sounds like a dream come true as a buyer, the reality is that it’s better to buy in a Seller’s Market because your home will appreciate right after you buy it.
Summer season is usually characteristic of a “summer slowdown” in the housing market as kids are out of school and people go on vacation. However, this year we’re seeing the end of forbearance for many homeowners. During the pandemic homeowners with federally backed loans were able to ask for forbearance – which means they could pause or reduce their mortgage payments for a period of time. While the vast majority of forbearances have ended with homeowners staying in their home, anywhere from 16%-20% have resorted to selling their home, according to the Mortgage Bankers Association, which means we should see an increase in supply over the next few months.
The bottom line for buyers is don’t wait for the market to balance out the current real estate market is a win-win for both savvy buyers as well as sellers so don’t give up.