While higher mortgage rates are creating affordability challenges for homebuyers this year, there is some good news for those people still looking to buy a home.
As the market has cooled this year, some of the intensity buyers faced during the peak frenzy of the pandemic has cooled too. Here are just a few trends that may benefit you when you go to buy a home today.
1. More Homes To Choose from
During the pandemic, housing supply hit a record low at the same time buyer demand skyrocketed. This combination made it difficult to find a home because there just weren’t enough to meet buyer demand. According to the real Estate Board of greater Vancouver, the # of homes for sale increased by 20% this September compared to September 2021. Even though supply is still lower than more normal levels, you have more to choose from in your home search. That makes finding your dream home a bit less difficult!
2. Bidding Wars Have Eased
One of the top stories in real estate over the past two years was the intensity and frequency of competition. But today, things are different. With more options, you’ll likely see less competition from other buyers looking for homes. If you tried to buy a house over the past two years, you probably experienced the bidding war frenzy firsthand and may have been outbid on several homes along the way. Now you have a chance to jump back into the market and enjoy searching for a home with less competition.
3. More Negotiation Power
And when you have less competition, you also have more negotiating power as a buyer. Over the last two years, more buyers were willing to skip important steps in the homebuying process, like the appraisal or inspection, to try to win in competition. Our experience today is that unconditional offers are very rare.
As a buyer, this is good news. It is so important and less stressful to have the opportunity for complete due diligence on your purchase.
While buyers still face challenges today, they’re not necessarily the same ones you may have been up against just a year or so ago. If you were outbid or had trouble finding a home in the past, now may be the moment you’ve been waiting for. Partner with your local real estate professional to start the homebuying process today.