A buyer’s market in real estate occurs when the number of homes for sale outweighs the number of people looking to buy. 2023 was no picnic for homebuyers in Asheville and elsewhere in the US. Interest rates on 30-year fixed home mortgages climbed to a high of 7.79 percent in October. Over the next two months, though, they steadily decreased. Some experts predict the tide’s turning and the downward trend will continue into 2024.
A variety of ever-changing factors influence how the housing market fluctuates. Working with dedicated mortgage lenders like those at GoPrime Mortgage in West Asheville increases the odds that you’ll be ready when a buyers’ market in real estate truly returns. Meanwhile, follow the advice of your lender to get ready.
Can You Predict the Best Time to Buy?
It’s impossible to know the best time to buy, but keeping an eye on market trends helps. Signs that a buyers’ market in real estate is returning include:
- The supply of homes on the market increases
- The number of people looking to buy decreases
- Homes stay on the market longer
- Prices for homes start to decline or stop increasing
- Sellers begin offering incentives to buyers
- Interest rates for mortgages drop
When it comes time to pursue that all-important home loan, many buyers work with an industry professional like the licensed loan offers at GoPrime Mortgage. They have the experience and market know-how to give you an edge on your homebuying quest.
How Can I Increase My Buying Power?
Knowing when there’s a buyers’ market in real estate is important, but that’s only one factor in giving you an edge. One of the advantages is only available to a small percentage of buyers — being able to offer all cash to purchase a home. This appeals to sellers because it doesn’t require the extra time and potential roadblocks of getting a loan approval.
While a cash purchase is beneficial, most people obtain a 30-year fixed loan to afford home ownership. If that’s you, take steps to put your finances in the best light before applying for a home loan. To achieve this, you can:
- Improve your credit score
- Pay off debts
- Increase your savings
- Request an increase on your credit line
Each of these tips boosts your bargaining power when acquiring a mortgage on a new home. It just makes sense to sweeten your financial picture before applying for that crucial mortgage loan.
What Incentives Do Sellers Offer that Give Buyers an Advantage?
Sellers sometimes offer one or more incentives to attract a buyer for their home. These incentives that appeal to buyers may include:
- Paying for closing costs
- Offering a home warranty
- Agreeing to an early or later possession time
- Paying for a period of HOA fees
- Offering a lease-purchase
- Including furniture or décor items
Several of these add-ons save you out-of-pocket cash. Others align with a timing issue on the sale of your current home. These incentives make certain purchase deals particularly appealing. Even if the seller doesn’t mention any, you can always request one or more of these perks with your offer.
Can I Look Forward to Better Buying Power in 2024?
There are hopeful signs of an improved buyers’ market in real estate in 2024. While it’s doubtful that the four percent rates from recent years will return soon, some experts see rates dropping to 5.5 or six percent within the next two years.
Whether you’re looking to buy your first home or your fifth home, tracking the trends arms you with practical input to guide your house hunt. Contact a seasoned professional at GoPrime Mortgage to find the financing that fits your dream home.
Sources:
https://www.forbes.com/advisor/mortgages/real-estate/housing-market-predictions/
https://www.capitalone.com/learn-grow/life-events/buyers-market/
https://www.cnn.com/cnn-underscored/money/mortgage-interest-rates-today-30-11-2023
