After two years of scorching property markets, recent sales data tells us that the housing market has finally begun to decelerate. Here’s why a slowdown can be good news for would-be homebuyers.
Home inventory is rising. NAR data shows that inventory of homes for sale began rising in April 2022, with more than 237,000 additional homes on the market by June. This number is expected to keep rising.
Sales are cooling. Earlier this month, the annual rate of new home sales fell 17% between March and April. It was also the lowest reading since April 2020. Reports show that the numbers of homes with price reductions continues to rise while the share of homes getting multiple offers is decreasing.
Even though the current market deceleration is expected to continue for some time, buyers who took a break from house-shopping may benefit from re-entering the market now. Real estate agents and mortgage lending professionals will be able to work more closely with buyers, trading the pressure of bidding wars for traditional customer service. And this may be all that’s required for would-be buyers to find the ideal home.
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