There’s a lot of buzz out there about supply improving- more listings coming to market and therefore an improved buyer scenario. While this is mostly true (16 out of 17 tracked cities have more supply than they did last month at this time according to Cromfrod Report) don’t think we are in anything other than a seller’s market still! While supply may be improving slightly, we still have low inventory levels and indicators strongly in favor of sellers at all price points. What I have been telling my buyers is- these recent changes in supply mean they will be competing with less offers than before. In the $400k-$500k price point, we might be up against 2-5 offers instead of 10-20, which make your odds better as a buyer for sure, but will still have you paying premiums- over asking, waiving appraisals, etc.
I believe another large factor at play here is buyer-burn-out. The buyer-burn-out is simply backing out or taking a pause on the searching process; many buyers are tired, disappointed and lack the will to continue the uphill battle- understandably so. For my buyers, it’s time to take advantage of both these factors and get the deal! I hear a new story of a buyer taking a pause every day- therefore, it’s an opportunity to get an offer on a home with no competing offers or possibly 1 other offer.
The danger in this burn out/increased supply zone is that after all the drama buyer’s have been through, now, with a property under contract the buyer begins to second guess their deal when they get it. Did I overpay? Is the market going to crash? Why doesn’t anyone else want this house? It’s a slippery slope. What I remind my buyers is this- review your list of wants/needs, price, payment, rate and then of course the inspection and make an educated decision to move forward.
Written by- Misha Renteria