The recent slowdown in the housing market has been a
Since last summer, more properties have come onto the market; mortgage interest rates have dropped; and the rate of home price appreciation, once in the double digits, is waning.
But that still doesn't help the many would-be buyers on a tight budget.
Affordability is still the biggest hurdle to homeownership, with nearly half of aspiring buyers looking for residences costing $200,000 or less, according to a recent realtor.com® survey.
That may be wishful thinking—the national median home price was about a third more, at $295,000 as of March 1. And home prices are still up 7% year over year. More than 1,000 people who hope to buy a home within the next 12 months participated in the survey.
“The Spring home buying season is an improvement over last year from an inventory perspective nationwide, but 
would-be buyers still face challenges," Chief Economist Danielle Hale of realtor.com said in a statement. "This year, shoppers are going to be grappling with their budgets, rather than competition from a horde of other buyers."
would-be buyers still face challenges," Chief Economist Danielle Hale of realtor.com said in a statement. "This year, shoppers are going to be grappling with their budgets, rather than competition from a horde of other buyers."
Unfortunately, the lower end of the market is also the tightest. The number of homes at or below $200,000 actually declined 7% from this time last year. Ouch. Nationally, inventory is up 6% overall, with the high-end segment ($750,000 and up) seeing the largest surge of homes going up for sale, with an 11% annual increase.
But the decline in entry-level houses for sale could explain why 
the largest group of buyers surveyed has been scouring the market for seven months or more. An additional 26% have been looking for four to six months, while 34% have been searching for only three months or less.
the largest group of buyers surveyed has been scouring the market for seven months or more. An additional 26% have been looking for four to six months, while 34% have been searching for only three months or less.
And the balance of power clearly has shifted away from sellers. With more homes to choose from, just 17% of home shoppers plan to submit offers over the asking price. That's down from 26% last year.
Plus, mortgage rates have fallen to just 4.06% on 30-year fixed-rate loans from 4.06% a year ago. This means buyers get a break with lower monthly mortgage interest payments.
"More homes on the market and lower mortgage rates will help offset some difficulties associated with price gains.
NOW is the time to get a Pre-Approval letter from our preferred lender. You'll be on your way to locking in your interest rate and giving the assurance to prospective sellers that you mean business. This is easy and necessary, and can be done via email or over the phone.
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Looking to sell or buy your home? Contact Carriene Porter at Precision Realty & Associates, LLC. Her years of experience and vast knowledge can assist you in this important decision of buying and selling your home.
Call or text today 801-809-9866!
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