As the amount of housing inventory has increased and prices have fallen, some buyers have become more eager to look for potential homes to purchase. This follows several months of rising interest rates and record-high inflation, which have caused the housing market to cool and prices to drop overall. While this may be less fortunate for some sellers, it could be a good time for reticent buyers to start getting into the market to take advantage of relatively low prices.
What is Happening in the Housing Market?
Right now, housing prices have been falling, due in no small part to rising inventory. More people are putting houses on the market to sell, including both new houses and homeowners looking to sell their current homes, meaning there are more homes available to buy compared to the number of people buying. This means that bids for new homes are lower, as there are fewer people competing for the same properties.
Why is This Happening?
The reason for the rise in inventory is simple: there is a great deal of demand for houses, and both real estate developers and existing homeowners reacted to that demand. For a time, it was nearly impossible to find a house on the market that didn’t have dozens of bidders competing for the property, but with more inventory coming onto the market, there is less reason to engage in these extensive bidding wars. This has caused overall housing prices to fall, as sellers get fewer bids and are forced to adjust their prices accordingly.
How Does This Affect Buyers?
For buyers, the market is looking the best it has been since the beginning of the COVID-19 pandemic. Falling prices and rising inventory means that homes that may previously have been unaffordable may now be within your price range. However, potential buyers should be wary of rising interest rates, which may increase the interest owed on a mortgage, increasing the amount they will need to pay over time to purchase a home.
How Does This Affect Sellers?
Sellers, meanwhile, are starting to feel the pressure from both rising interest rates and high inflation. As prices overall begin to fall, some sellers may be at risk of losing the equity on their homes, depending on how much they owe on their mortgages. Still, there are many more prospective buyers than there are sellers, meaning there is plenty of opportunity to make money from your property.
At Liongate Homebuyers, we assist our clients with a variety of services related to buying and selling real estate, including purchasing homes for cash. We have experience handling real estate financing, especially for developers and house flippers. If you are interested in selling your home for cash, please contact us at 516-548-6553, or visit our contact page.
