After more than a year of low housing inventory, skyrocketing prices, and intense bidding wars, the real estate market appears to be tempering a bit. While inventory is still sparse (though improving) and prices continue to appreciate (though at a less rapid pace), there's plenty of reason for optimism if you're looking to buy. Here are a just a few reasons why it's a good time to buy a house.
Fewer Bidding Wars
A bidding war occurs when a listing receives multiple bids to purchase. According to a recent study, bidding wars are occurring in fewer closings after surging in April. Real estate agents were surveyed and reported that 74.1% of their listings received multiple offers – a peak during the pandemic.
Since then, however, that number dropped to 72% in May and 65% in June. For context, last June saw the bidding rate at 56.8% as the market began to rebound during the summer months. Don't let that annual increase alarm you, though.
Competition for listings still exists, but it's not as fiery as it was during the spring. If the thought of duking it out with other offers has left you feeling fatigued, then rejoice as demand lessens.
We don't want to give you any wrong impressions – housing inventory still hasn't quite normalized to a stable state. Listings are still tough to come by, and even as competition dies down a bit, buyers are still hungry for any new home that becomes available.
With all that being said, there is cause for optimism. New listings were up 9% during the week of July 24, the second increase in as many weeks. What's more, there's been an increase in new listings during 15 of the last 18 weeks compared to last year.
Slowly but surely, new homes continue to hit the market.
Mortgage Rates are Still Low
Low mortgage rates represent another critical reason why it's a good time to buy a house. Since dipping below 3% in April, mortgage rates have continued hovering around 2.8%. In Florida specifically, the average rate for a 30-year fixed loan is 2.98%, while the average rate for a 15-year fixed loan is 2.29%.
Such low mortgage rates have resulted in an increase of buying power for those seeking to purchase a house. Even with inflated house prices, low mortgage rates help to restore some balance to buyers.
Ready to shake off buyer fatigue and get back into the housing market? Contact one of our agents to get started today.