Don’t Let Buyer Competition Keep You from Purchasing a Home
This year’s record-low
mortgage rates sparked high demand among homebuyers. Current homeowners,
however, haven’t put their houses on the market so quickly. This makes finding
a home to buy today challenging for many potential buyers. With an obstacle
like this, those searching for their dream homes may be pressing pause on their
searches as we approach the end of the year, but that could be a big mistake
for many hopeful house hunters. Here’s why.
According to the most
recent Housing Trends Report from
the National Association of Home Builders (NAHB):
“The length of time spent searching for a home continues to grow.”
The report indicates
that 62% of buyers now spend 3 months or more looking for a home, an
increase from 58% one year ago. A primary cause for the delay is the
heavy competition today’s buyers face when making an offer on a home. Based on
recent data from the National Association of
Realtors (NAR), the average
house in today’s market receives 3.4 offers before it’s sold. This
means for every buyer who purchases a home, there are on average two or three
buyers who have to begin their search all over again.
Compared to this time last year, the NAHB report shows that buyers are having more success finding homes in their price range. However, it also notes the percentage of buyers saying they’re getting outbid when they make an offer has jumped from 15% to 27%. Buyers are indicating that bidding wars are a major obstacle to finding their dream home (See graph below)
If this is a challenge you’re up against in
your home search, you’re not alone. Feeling stuck in the process can be
frustrating, but if there’s ever been a year to power through, this is the one.
NAHB noted:
“Difficulties finding a home to buy will likely lead 20% of active
buyers to give up until next year or later. That share is up from 15% a year
earlier.”
Experts anticipate
home prices will continue to rise into 2021, and the incredibly low-interest rates we’ve seen this year are also forecasted to increase as the
economy strengthens. Hopeful home buyers who decide to hold off on their search
until there’s less competition run the risk of finding a more expensive housing
market when they start looking again. If affordability is a key motivator
behind your decision to buy a home, this winter is still the best time to make
it happen.
Bottom Line
Bidding wars may be one of the greatest
challenges buyers face in today’s housing market, but they shouldn’t be a
deal-breaker. Having the right expert on your side throughout the buying
process will give you the advantage you need when it comes to finding the right
home and making a competitive offer. If you’re ready to buy this winter,
contact a local real estate professional to discuss how to position yourself
for success.
As always, if you have any questions about this blog post, please feel free to contact us at Bill-913-837-0760 or Danicia 913-837-0411. We would love to hear from you!
No comments:
Post a Comment