Buyers today have had to deal with incredibly low housing inventory in an incredibly competitive market. For those leary of moving fast, the uncomfortable pressure of feeling rushed is heavy and ever-present. Even for those who powered though, a restful night of sleep was probably not had until closing papers were signed. It’s been rough for buyers, locally and throughout the country, but it appears there is light at the end of the tunnel. In fact, according to experts across the country, the housing market may just be turning a corner.
Housing inventory is rebounding! According to housing experts, nationally we have seen the number of active listings rise by 8.0% in May. However, it’s important to note that although there may statistically be more listings than earlier in the year, inventory is still on the low side, especially when compared to pre-pandemic years. Yes, more homes are available, but inventory is still 59.6% lower than it was in May of 2019. But, don’t let that fact rain on your homebuying parade, slowly but surely, the needle seems to be inching towards a more neutral housing market.
Mortgage rates may be higher than they were in 2021, but historically rates are still low when compared to previous decades.
That being said, It is also important to note that mortgage rates are projected to change throughout the year. Be ready to capitalize on buying a home when your purchasing power is strongest. Working with your Realtor and loan officer can help you determine how to time your move.
Manage Your Expectations
In today’s market, if you snooze, you lose! View homes with an open mind and show up with creative solutions to problems like excessive wallpaper and outdated flooring already formulated. Now is not the time to walk away from a home because it needs more TLC than you had hoped. Instead, ask yourself if the home is in the location and condition that you need more than having the cosmetic updates you want. A good rule of thumb is to follow the 80-10-10 rule. The rule is simple and is meant to help you see past the things you can change later down the road. Determine if you like 80% of the home, if you can fix 10% and can life with the other 10%. If so, you may have a winner!
Buyers now is not the time to rest on your laurels. Still come to the table with your best and final offer the moment you know you want to submit an offer on a home. Be as competitive as you feel comfortable and keep communication with your Realtor as open as possible. Your agent knows how to compete in this market, lean on them and their expertise! And if you are in need of connecting with a real estate agent, browse our website! Ruhl&Ruhl has offices throughout Iowa and offices in Illinois and Wisconsin.