Buying a Home in a Seller's Market

Let's talk about the burning question on everyone's mind these days. When will the housing market shift? 

Unless you've been living underground, you know that it's a seller's market & has been for quite some time. Since the start of the Covid crisis in 2020, the housing market has experienced an extreme flip in homes for sale (approx. under one month of available inventory) on a consistent basis. Even so, there are still plenty of buyers looking, creating high demand & low supply, which equals... you guessed it, lots of competition.

So when will this change? Most experts say; not any time soon. For things to lean to a "buyer's market", we'd need to see a dramatic increase in homes listed (around 6 months in inventory) and unfortunately for buyers, this doesn't look likely.

So what can buyer's do? 

Many have chosen to "wait for things to calm down".  Sadly, there are no guarantees things will change any time soon. After all, those who opted for this strategy last year are already feeling the pain from that decision.

Even so, from our experience, it's still possible to succeed in this low-inventory market. After all, it may be competitive, but it's nowhere near impossible to find a home in today's climate. You might also be surprised to hear that you can still find a great deal on a home today too, with the right strategy.

While interest rates are still reasonably low (as of today they hover around 3-4%), they appear to be on the rise. Yet, obtaining a low mortgage rate won't mean much if you can't find a home to finance in the first place.

In order for buyers to still find a good deal, they must follow some simple strategies:

• Save enough money for a suitable down payment
  • Lenders will require at least 3% down unless the buyer obtains down payment assistance, which we wouldn't recommend. Buyers with less than ideal financing are more likely to be out-bid, spend more time looking for a home, & may find themselves in a less than ideal home when all is said and done. To avoid this, saving for a 3-5% down payment is your best bet. 
• Prepare to make decisions and appointments quickly
  • Homes aren't staying listed for very long, simply because there aren't many to choose from. Therefore, it's best that buyers come into the process with a healthy expectation. Looking at homes within the first day or two days of being listed for sale is best. Most homes also have offer deadlines, but even if that isn't the case, buyers should expect to submit an offer as soon as the same day that they toured the home, if not within the next day or so at the latest to avoid missing out.
• Find great representation
  • There's no playing around anymore. Finding a strong buyers agent, a responsive lender and diligent, timely inspectors is more crucial than ever before. Sellers are all but demanding quick, easy closings, and having someone represent you poorly, missing details, or dragging their feet won't fly. Buyers can't afford to miss out on a home once the offer is accepted, so making sure you're working with a trustworthy individual is just as important as finding the right home today. 
• Don't let the crazy get to you
  • You'll likely have to make some compromises in today's market, but that doesn't always mean you're getting a bad deal. The biggest mistakes many buyers are making today are letting the market scare them to the point of making poor investment decisions or being unwilling to make any compromises for fear that they'll be taken advantage of. Find an agent who can help you make "smart compromises", the kind that you won't feel in the long run. This doesn't always mean higher bids! Often this means crafting an offer that meets all the seller's needs, while still protecting yours. 

No one is saying the market is fair for buyers, they certainly don't have the upper hand in the current climate. Still, it doesn't need to be a scary process and it certainly doesn't mean buyers can't find a good investment or a great home. 

Don't believe us?

Let us change your mind. We have licensed agents on our staff with an abundance of experience buying & selling homes, renovating & managing rental properties. We can help make the buying experience smooth and find you a great deal in the process, even in a seller's market. 

Schedule a free consultation to:

• Ask questions

• Start the home buying process

• Set up tours to see homes for sale

• Get realtor advice