The shortage of housing on the market causes a lot of stress for potential buyers. A shortage of properties available for purchase has spurred demand and spiked home prices, leaving many buyers idle.
But in June the supply of housing increased. According to Realtor.com, new ads were up 5.5% from the previous June and, just as important, 10.9% from May.
Of course, the real estate market still needs a lot more homes to give average buyers a chance. Last June, there were 415,000 fewer homes for sale than would normally be the case on a typical day that month. But, nevertheless, June stocks mark an improvement over March, April and May, and if more offers continue to appear on the market, then in terms of house prices, the situation may begin to cool.
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How to navigate today’s market
Many buyers refuse to give up in today’s real estate market for one big reason. Mortgage loan rates remain very competitive overall, and buyers do not want to pass up the opportunity to get an affordable home loan with a 30-year maturity period.
However, today’s market is challenging for buyers. The ongoing inventory shortage means that several homes that are available for purchase are closing. bidding warwhere potential buyers fight in the hope that they can beat each other on price.
Customer frustration is exacerbated by the apparent lack of starting houses in the market, coupled with the number of buyers who come and make cash offers for low to moderately priced homes. Most people who want to buy a home cannot do it right away – they need to finance this purchase with mortgage… But mortgages can take time to close and can fail, so buyers who need home loans are more dangerous for sellers than buyers who have the ability to pay in cash and close immediately.
If you have a hard time navigating today’s housing market, this can help narrow down your priorities for your new home. Rather than dwelling on seven or eight key stats, narrow that list down to four or five, as this could open the door to more properties.
Also, if you are having trouble accepting an offer, get preliminary agreement from a mortgage lender. While pre-approval does not guarantee a mortgage, it does does Tell sellers that you are a serious buyer with a proven track record. Plus, pre-approving your mortgage can help you set a more accurate home purchase budget. This, in turn, can prevent a scenario where your love for a particular home forces you to overdo it and take out a loan you cannot comfortably afford.
Today’s housing market is difficult for buyers, but the fact that inventories have risen is a positive sign. And if this trend continues, more people will find it easier to buy a home in the second half of the year.