Is the Shifting Market a Challenge or an Opportunity for Homebuyers?

Real Estate Blog

Is the Shifting Market a Challenge or an Opportunity for Homebuyers?
If you tried to buy a home during the pandemic, you know the limited supply of homes for sale was a considerable challenge. It created intense bidding wars which drove home prices up as buyers competed with one another to be the winning offer.
 
But what was once your greatest challenge may now be your greatest opportunity. Today, data shows buyer demand is moderating in the wake of higher mortgage rates. Here are a few reasons why this shift in the housing market is good news for your homebuying plans.
 
The Challenge
 
There were many reasons for the limited number of homes on the market during the pandemic, including a history of underbuilding new homes since the market crash in 2008. As the graph below shows, housing supply is well below what the market has seen for most of the past 10 years (see graph below):
 
Is the Shifting Market a Challenge or an Opportunity for Homebuyers? | MyKCM
The Opportunity
 
But that graph also shows a trend back up in the right direction this year. That’s because moderating demand is slowing the pace of home sales and that’s one of the reasons housing supply is finally able to grow. For you, that means you’ll have more options to choose from, so it shouldn’t be as difficult to find your next home as it has been recently.
 
And having more options may also lead to less intense bidding wars. Data from the Realtors Confidence Index from the National Association of Realtors (NAR) shows this trend has already begun. In their recent reports, bidding wars are easing month-over-month (see graph below):
 
Is the Shifting Market a Challenge or an Opportunity for Homebuyers? | MyKCM
If you’ve been outbid before or you’ve struggled to find a home that meets your needs, breathe a welcome sigh of relief. The big takeaway here is you have more options and less competition today.
Just remember, while easing, data shows multiple-offer scenarios are still happening – they’re just not as intense as they were over the past year. You should still lean on an agent to guide you through the process and help you make your strongest offer up front.
 
Bottom Line
 
If you’re still looking to make a move, it may be time to pick your home search back up today. Let’s connect to kick off the homebuying process.

Recent Blog Posts

Stay up to date on the latest real estate trends.

Real Estate Blog

Why You May Want To Start Your Home Search Today

If you’re thinking about buying a home, you likely have a lot of factors on your mind. You’re weighing your own needs against higher mortgage rates, today’s home price… Read more

Real Estate Blog

Is the Shifting Market a Challenge or an Opportunity for Homebuyers?

If you tried to buy a home during the pandemic, you know the limited supply of homes for sale was a considerable challenge. It created intense bidding wars which drove… Read more

Real Estate Blog

Why It’s Still a Sellers’ Market

As there’s more and more talk about the real estate market cooling off from the peak frenzy it saw during the pandemic, you may be questioning what that means for your… Read more

Real Estate Blog

Why Are People Moving Today?

Buying a home is a major life decision. That’s true whether you’re purchasing for the first time or selling your house to fuel a move. And if you’re planning to buy a … Read more

Real Estate Blog

Want To Buy a Home? Now May Be the Time.

There are more homes for sale today than at any time last year. So, if you tried to buy a home last year and were outbid or out priced, now may be your opportunity. Th… Read more

Real Estate Blog

Inside Diane Keaton’s Stylish Real Estate Portfolio

The actor has long been an avid fan of interior design and flipping houses Diane Keaton’s love for real estate began early. In a 2017 interview with Wine Spectator, s… Read more

Real Estate Blog

Expert Housing Market Forecasts for the Second Half of the Year

The housing market is at a turning point, and if you’re thinking of buying or selling a home, that may leave you wondering: is it still a good time to buy a home? Shou… Read more

Real Estate Blog

Luxury Homes Are in High Demand

As people realize their needs are changing, some are turning to luxury housing to find their dream home. Investopedia helps define what pushes a home into this categor… Read more

Real Estate Blog

What Are the Best Options for Today’s First-Time Homebuyers?

If you’re looking to buy your first home, you’re likely balancing several factors. Because both mortgage rates and home prices have risen this year, it costs more to b… Read more

LET'S TALK