Relief on the Horizon for Home Buyers
A recent housing report found that more than one in five sellers dropped their asking price during May 2022, the highest rate since October 2019.
Our key takeaways from this national real estate report:
- More than one in five sellers dropped their asking price during May 2022
- Nationally, buyer demand declined 9% percent during May (as measured by home tour requests)
- Pending sales posted their largest annual decline since Spring 2020, a mix of inventory and tempered demand
- The number of homes for sale posted their smallest decline since the same period
- Mortgage rates sit at over 5 percent, but saw two weeks of slight declines in June 2022.
What does it all mean? The data signals a slightly cooling market shift in favor of homebuyers, although supply challenges continue to persist and are expected to maintain elevated prices. For buyers, this means fewer multiple offers to compete with and homes staying on the market a few extra days.
What’s causing this shift, even if it’s slight? The spring surge in mortgage interest rates led to a sudden and significant downshift in the market in May. With rates stabilizing, and inventory still low, we anticipate home price growth rates to decline but not plummet. The best news for buyers: less competition as supply starts to build up may make this the optimal time to purchase.
First Time Buyers
If you’re a potential home buyer and don’t know the first place to start looking to buy a home… We gotcha! Two Door Group is making sure our new and first time home buyers sleep easier, helping to educate and walk through each step of the path. Don’t just take our word for it, we have a 6-page e-book for you to check out, too. Click here for homebuyer guide.
If you’ve been sitting on the sidelines of a hyper-competitive market this past year, this news might have you jumping for joy! Now is a golden opportunity to get pre-qualified. Ask us for an introduction to our preferred mortgage partners for a no-obligation, personalized consultation.
For Two Door Group, June 2022 proved that buyers are still seeking to purchase their dream homes this summer. We closed 13 units totalling $4.679M, and you could be next!