This year’s record low mortgage rates have caused high demand among home buyers. Current homeowners, however, have not so quickly put their homes on the market. This makes finding a home to buy difficult today for many potential buyers. With such an obstacle, those looking for their dream homes may be squeezing 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 the la National Association of Home Builders (NAHB):
“The length of time looking 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 of 58% a year ago. The main cause of the delay is the heavy competition that buyers are buying today when they are bidding on a home. Based on recent data the la National Association of Real Estate Agents (NAR), the average house in today’s market is getting 3.4 offers before it is sold. This means that for every buyer who buys a home, there are on average two or three buyers who have to resume their search.
Compared to this time last year, the NAHB report shows that buyers are more likely to find homes in their price range. However it also notes the percentage of buyers saying they get it offer more when they bid, jumped from 15% to 27%. Buyers indicate that supply wars is a major obstacle to finding his dream home (See graph below):If this is a challenge you face during your home search, you are not alone. Feeling stuck in the process can be frustrating, but if it’s ever been a year, this is it. NAHB noted:
“Difficulties in buying a home are likely to cause 20% of active buyers to give up until next year or later. That share more than 15% a year earlier.”
Experts predict that home prices will continue to get up in 2021, and the incredibly low interest rates we’ve seen this year also predict increases as the economy strengthens. Hopeful homeowners who decide to continue their search until less competition risks finding a more expensive housing market when they search again. If affordability is a key incentive behind your decision to buy a home, this winter is still the best time to realize it.
Bidding wars may be one of the biggest challenges buyers face in today’s housing, but they don’t have to be a deal breaker. Having the right expert on your side during 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, let’s connect to discuss how to position yourself for success.
Content previously posted in Keep Current Things