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Geoffrey Rickaby - First Weber Realtor

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The Real Estate Market Is Cooling Down: What Buyers Need to Know

Posted in Featured

The current housing market is in transition. Things are beginning to calm down after years of rising prices and low inventory. Mortgage rates are rising, and the national median home price is down 3.4% from a year ago. Due to this, it is becoming more challenging for buyers to afford homes, and as a result, sales are beginning to decline.

Existing-home sales in March 2023 are down 22% from a year ago and down 2.4% from February. After a 131-month run of record increases, this is the second month in a row that there have been year-over-year decreases.

There are a few things that are causing the real estate market to cool. First, since the start of the year, mortgage rates have been steadily rising. At 6.5%, the average 30-year fixed-rate mortgage is at its highest level in more than ten years. Due to the increased cost of borrowing money to purchase a home, some buyers are being discouraged from entering the market.

Second, stock levels are beginning to rise. In March, there were 1.419 million homes available for purchase in the US, an increase of 7.7% from the same month last year. As a result, buyers have more options and are less likely to face competition from other buyers’ offers.

Finally, there are indications that the economy is slowing down. In an effort to fight inflation, the Federal Reserve is raising interest rates, which is probably going to hurt economic growth. Because of this, some people might be hesitant to purchase a home at this time for fear of losing their jobs or having their income reduced.

The current real estate market is generally beginning to slow down. This trend is being fueled by rising mortgage rates, rising inventory levels, and a weakening economy. Although it is unclear how long this trend will last, buyers are currently better off than they have been in recent years.

Here are some tips for buyers in the current real estate market:

  • Be ready to take quick action. You must be prepared to submit an offer as soon as you find a home you like because houses are still selling quickly.
  • Be prepared to pay more than the asking price. In some situations, you might have to make an offer higher than the asking price to win a bidding war.
  • Get a mortgage pre-approval. This will demonstrate to sellers that you are a serious buyer and have a good chance of closing the deal.
  • Be patient. Although the market is cooling, it might still take some time to locate the ideal residence at the ideal price.