Short answer: Buyers are waiting. According to the United States Department of Housing and Urban Development (HUD), prices for new homes jumped $80,000 in two years. It normally takes a decade or longer for prices to increase by that much. Mike Tyson says everyone has a plan until they get punched in the mouth. That price increase is an $80,000 punch in the mouth. Interest rates are balancing out to a historically low 6%. Yes, they have increased from 3% during the pandemic. But that was an extra-ordinary set of circumstances. We’re back to business as usual (only better because 6% is really low.)
Buyers haven’t given up on their dream of owning, they are just recovering from a significant change in the market. They are taking more time to save up the additional down payment, waiting until they get a raise to afford the higher payment and/or being more selective in their home search. Buyer’s margins for repairs and upgrades after closing have shrunk considerably as purchase prices have increased.
Buyers- I’m here for you. Please let me know how I can help not only in your search but how I can help with your buying strategy. It’s important to have a knowledgeable, experienced advocate in your corner during a changing market. I’d be honored to help.