Many people are fixated on the high mortgage rates that homebuyers are facing today, which can overshadow the benefits of buying a home in today’s market. Homebuyers have a unique set of opportunities at their fingertips that were not available during the past two years. It can be easy to focus on the headlines, but remember, most of the time they only create fear instead of clarifying what’s actually happening in the real estate market. At the end of the day, purchasing a home is a very personal decision and the best way to form that decision is by collecting your own facts. So, here are some benefits of buying a home in today’s market:
You Have More Options to Choose From
Having more options is never a bad thing. When inventory was super low, home buyers had to decide which amenities they could live without to increase their chances of securing a home. According to a recent Zillow study, 75% of the homeowners who purchased during the pandemic have buyer’s remorse. Most of those home buyers rushed into their purchase, didn’t like their neighborhood, paid more than what they wanted, and compromised on certain home features. The good news is that in today’s market, you can take your time on your home search and find a home that crosses off all of your wants and needs.
The graph below shows our current month’s supply of inventory, compared to the previous two years. There are two main reasons for this growth in home inventory: homeowners are continuously listing their homes for sale and homes are spending more time on the market due to less buyer competition.
You Won’t Have to Waive Your Contingencies
In the red-hot housing market of 2020 and 2021, it was common for home buyers to waive all of their contingencies. Essentially, homebuyers were letting their guard down and putting themselves in a very vulnerable position. Even though real estate agents don’t recommend waiving contingencies, they often did this to make their offer more appealing to the home seller. Nowadays, it’s rare for home buyers to waive all of their contingencies. Contingencies are written into the contract for a reason. They protect the home buyer from having to move forward with a home sale if there are substantial issues with the home, if they can’t secure financing, or if the property doesn’t appraise at the offer price.
You Have More Negotiating Power
More home sellers are becoming antsy as their homes sit on the market for longer periods of time. This gives buyers room for negotiation – a luxury that was not around during the pandemic. Instead of paying thousands over the list price, homebuyers today actually have an opportunity to offer less or negotiate for terms that suit their needs. In today’s market, home sellers are more likely to negotiate with buyers on repairs and help out with closing costs.
If you’ve been thinking of buying a home make sure to weigh all of the pros and all of the cons. Yes, mortgage rates are high right now but you can speak to a qualified lender to see if you can secure a monthly mortgage within your budget. When interest rates come down, you can always refinance. If you have any questions or would like a referral to a local Long Beach lender, give us a call at 562.896.2456.