Should You Buy a Home in this Market?
With real estate inventory on the rise, now could be a great time to buy your first home - or even upgrade from your current one. But, before you start house hunting, it's important to understand why inventory is increasing and what that means for potential buyers and sellers. Let's take a look!
Why is Inventory on the Rise?
The simple answer is supply and demand. When housing markets are hot, more people start looking for homes - which often leads to bidding wars and rising prices. But when sales slow down due to economic conditions or other market shifts, there can be an oversupply of homes on the market. This is where we are now in many areas of the country - inventory is high and prices are falling as sellers compete for buyers in this buyer's market.
What Does This Mean for Buyers?
For buyers, this could be a great time to purchase a home if they have job security and good credit. Because there is such an abundance of homes on the market right now, buyers can often negotiate lower prices than asking price, as well as getting some or all of their closing costs paid by the seller. Additionally, many sellers are willing to pay for home warranties (which can help cover repairs during the first year after purchase) in order to make their listing more attractive to potential buyers.
What Does This Mean for Sellers?
For sellers, this means they will need to price their homes competitively in order to attract buyers who may have multiple choices when it comes to selecting a new home. It also means that sellers may need to offer concessions like covering closing costs or paying for home warranties in order to sweeten the deal and make their listing stand out from others on the market.
The bottom line is that now might be an excellent time for both buyers and sellers alike when it comes to purchasing or selling a home due to an increase in real estate inventory. However, it's always best practice for both parties involved in any real estate transaction (whether buying or selling) to research local market trends thoroughly before making any decisions so that they can be sure they are making sound investments that suit their individual needs!