If you are searching for a home or looking to sell your home, now is the time to make the decision and act on it! You may have heard of some changes recently as far as pricing and competition are concerned, and these changes could only become more impactful as the year continues. When the Federal Reserve began combating growing interest rates with increasing mortgage interest rates earlier this year, bidding wars slowed, and the stronghold of sellers dominating real estate negotiations began to shift. While this may feel like the real estate market is collapsing, especially as we have been experiencing a very wild market in the Austin area for the past few years, this shift is actually just the restoration of the balance of power between sellers and buyers.
“The housing market isn’t crashing, but it is experiencing a hangover as it comes down from an unsustainable high,” said Redfin deputy chief economist Taylor Marr in the latest Redfin report. “While a lot of home sellers are already dropping their prices, more homeowners will likely decide to stay put now that the mortgage rate on a new home is significantly higher than their current one.“
According to the latest Redfin report, an increasing number of home sellers are dropping their prices as bidding wars decrease, mostly to offset the rapidly-increasing mortgage interest rates and to entice buyers. The report mentions it is the fourth consecutive month where home buying competition between buyers is in decline, which means if you were thinking of buying or selling your home, now is the time to do so.
Why? Because should the inventory of homes outpace the number of buyers, then buyers will become the ones who control the market. If you are thinking of selling your home, now is the time to make that decision as the shift may not be in your favor soon. If you are thinking of buying, you should definitely consider buying now, as interest rates are only expected to increase, and even if home prices drop, the mortgage rate will only make it more expensive to buy a home later on down the road.
Interested in buying or selling your home? Give us a call at 512-956-8620 or email us at info@rxrhometeam.com! We’d love to hear from you!
