This Hot Housing Market is Moving Towards a Cool Down Period

The housing market in the United States was seeing a consistent upsurge for the past several years. During the summer, one would usually expect this market to get even hotter. As it turns out, however, it never pays to speak too soon!

Hot Housing Market

What’s actually happening is that the real estate market seems to be simmering down a bit. We might have reached a peak, or will reach it anytime soon. According to the latest statistics, the prices are slowly going down while the number of properties for sale is going up. The same goes for the average time for a home available on the market, meaning that sales have started slowing down as well.   

So, what does this mean for homeowners, home buyers, and sellers? While home values are still on the rise, that factor just might change sooner than we realize. The Housing and Mortgage Market Review states that home prices will most likely either rise or stay stable for the next two years at least. They’re at a record high even now, but the market growth is likely to slow down a little.  Let’s now have a look at the meaning of these changes for various groups: 

Home Buyers

There are now more homes for sale, so buyers have more choice. It’s been a difficult phase for them so far, with bidding wars and scarce properties all over the place. 

If you're a potential home or property buyer, here are some tips to help you navigate this slightly more forgiving market: 

Get expert help

There are many expert agents out there who can help you find that dream house or property. In the past year, the U.S market has seen more houses available (around 4 percent). In the largest cities in the U.S, the difference in a single year is as much as 10 percent. Even with the increasing choice, there’s still a lot of competition among buyers. Plus, not everyone is always aware of the differing housing markets between cities. If you’re planning on moving to a whole different city or state, it’s all the more important to get an experienced real estate agent on board. 

Make a budget and stick to it

Now that the market is more in favor of home buyers, you can act upon this advantage and negotiate a bit. However, it’s equally important to stick to your budget. You must wait a bit more till you have enough savings to buy a real estate property.

Have flexible closing dates and schedules

The real estate market might be cooling for a bit, but you’re still facing a time crunch when you like any property. The average for houses going under contract after listing is only 28 days, which isn’t much. Some metro areas might have even shorter grace periods, so you have to act as quickly as possible. 

You will need to have your schedule a bit empty while the home purchasing process is underway. Once a home is listed, they’ll probably be off the market sooner than you realize. Take some time off, cancel some plans, and schedule your tour right away. 

A flexible closing date will also give the home seller a decent moving timeline. The greatest advantage of this step is that it doesn’t cost you a thing but does make your offer more attractive than the rest. 

Check out homes that are below your limit

Bidding wars are still a thing. So, narrow down your vision a bit. You might like a specific house and have to increase your offer if someone else wants it as well. 

In fact, most homes on the market are still going for way above the listed price. It just makes sense to go for something that’s below the maximum you can afford. Fluctuations in your mortgage loan amount can also affect your budget, so be sure to take that factor into account. In that case, it’s a wise idea to consider the rent to own mobile homes option. 

Home Sellers and Homeowners

Those who want to or already have put their property on the market might be feeling anxious in that environment now. If you’re one of these, take heart in the fact that home values will probably still be rising for at least two years now. Demand is going down slightly, so reevaluate your approach as soon as possible. Here are a few steps and precautions to take: 

No borrowing against the home’s value

Home equity is increasing, which means that most homeowners will probably be staying right where they are. Some people might be tempted to make use of that equity by getting an HELOC (Home Equity Line of Credit) or a home equity loan. While this might be helpful at the movement, it’s not really a good idea. Basically, you’re risking your home for some life upgrades that you can probably do without. 

If it’s not an absolute emergency, get some savings together and pay cash for that remodeling or a vacation. It might be a few more months or even years before you get what you want, but at least you won’t be taking such a serious move. 

Prepare to adjust prices

If a house hunter is savvy enough, they can detect overpriced properties very quickly. If you feel that your home is not selling fast enough, count on your real estate agent and discuss whether lowering the price is a viable option. While lowering the price might be a  bit disappointing, it will at least get your house off the market. Remember, a house sitting on the market for too long will make potential buyers doubt its value even more. 

Have patience

The hard truth is that the demand for housing is a bit lower than before. You might not get as many offers as you could expect even as little as a year ago. There’s no need to get overly worried about this; all you really need is one good offer to sell and make a tidy profit.  

Since the real estate market is cooling down, selling a home might take some more time. This is the point where you stay with the process, work alongside your agent, and focus on getting the property in even better shape than before. 

Stay updated about trends

Your real estate agent is best equipped to tell you about the ebbs and flows in the housing market. Stay in touch with pros like them, as well as other homeowners or people who are looking to sell their real estate. See where the market is headed and try to keep up as much as possible. With efforts like these, you’ll hopefully be able to give potential home buyers what they’re looking for. For instance, you could use this time to work on upgrades that current home buyers want; perhaps open up some space for a home office instead of investing in marble countertops that stain easily. 

The Takeaway

The hot-selling real estate market might be winding down a little bit, so homeowners and sellers have to be a little more on their toes. However, this doesn't mean that buyers are ruling the roost - far from it. At the end of the day, everyone has to stay tuned to the market and work out a deal that’s suitable for all parties.