Hope Lies Ahead for Homebuyers

Finding Opportunities for Hopeful Homebuyers

Hope Lies Ahead for Homebuyers

The real estate market for homebuyers since the beginning of 2024 has been challenging for several reasons. The obvious reason for this is affordability due to rising interest rates; this isn’t a new topic. Rates peaked over 8% in Q4 of 2023, and while they haven’t yet gotten back to that level in 2024, the rates are still significantly higher than they were 12 months ago, and they haven’t yet dropped like economists forecasted them to. This has a considerable impact on a buyer’s monthly payment and affordability; what they could once afford, they can no longer. However, hope lies ahead!

The result of the increasing rates in Q3 and Q4 of 2023 – paired with decreasing seasonal inventory – was pent up demand as we jumped into 2024. This demand was stronger and fiercer than in years past due to how sharply the market slowed down last year. This extremely high demand – with slightly lower rates than were present in the months prior, saw buyers coming out in full force and writing extremely strong offers with little inventory options available. Our team saw so many buyers struggle with multiple offer scenarios in Q1 where they were (for all intents and purposes) a strong offer with a great financing situation, but because many of them couldn’t write full cash offers with no contingencies, they couldn’t get an offer accepted.

We’re now seeing another correction happening right now, and this time, it is a screaming opportunity for buyers. Inventory is finally increasing – so buyers now have more time to look at more options for writing an offer on a home, and they are competing with fewer other buyers due to having more available options. Of course, there are always exceptions- move-in ready homes in the most desirable neighborhoods will continue to fly off the market in days (if even!) with multiple offers and great terms.

For hopeful homebuyers, my advice is this. Seek out opportunities! If you feel like you’re ready to give up because you’ve written offers that haven’t been accepted, the market is different today than it was in Q1, so talk to your agent about finding the window of opportunity where you can be successful. Sometimes that window is a small snapshot in time over a weekend where there is an excess of inventory that just went live, or sometimes it is the house that just came back on the market after another buyer overbidding and getting cold feet. Either way, if your approach is to continue to seek out the house that is going to be competitive and you don’t have the means to compete, that is the fastest path to getting burnt out during the process. Look slightly outside your preferred criteria and radius and open your mind to the lifestyle you are looking for rather than specific features, and you will be amazed at the opportunities that this summer’s market will bring for you. 

Posted by Alison Crim on
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