For a Buyer’s Market, Are You Prepared? Sales of Pending Homes Fall for the Seventh Month in a Row

The National Association of Realtors reports that the quantity of pending home sales decreased by 2.0% in September. Pending home sales have decreased for the eighth straight month.

The drop in pending sales of real estate indicates a dip in demand for home purchases. This is caused by several things, one of which is the increase in mortgage rates.

Mortgage rates have been steadily rising since October 2021, and they are currently over three times higher than they were at that time. This has increased the cost of purchasing a property and discouraged many prospective purchasers from joining the market.

The dearth of inventory is another reason fueling the fall in demand for home purchases. The demand for homes cannot be met by the supply of available properties. Because of this, it is becoming more and more difficult for purchasers to afford a home as property values rise.

What effect does this have on the real estate market?

If mortgage rates stay high and inventory stays low, the demand for homes is likely to continue declining in the upcoming months. This may cause the housing market to cool off, stabilizing or even dropping home prices.

How should purchasers proceed?

Obtaining pre-approval for a mortgage is crucial if you’re considering purchasing a property. This will help you determine the maximum amount you can borrow and the monthly payment amount.

When you do locate a home that appeals to you, you should also be ready to move fast. Demand is beginning to decline, but the housing market is still competitive.

Here are some pointers for current market homebuyers:

• Receive a mortgage pre-approval.
• Be ready to take swift action.
• Examine a mortgage with a shorter term.
• Increase the down payment amount.
• Compare interest rates.

Recall that mortgage rates fluctuate. They will finally descend once more. You can take certain actions to lower the cost of purchasing a property in the interim.

Other real estate buying advice:

• Be adaptable when defining your search parameters. You might be able to discover a better deal if you’re willing to consider purchasing a home in a different neighborhood or of a different design.
• Deal with an experienced real estate broker. A competent realtor can assist you in locating the ideal house for your requirements and negotiating the greatest deal.
• Never be reluctant to bargain. If the house has been on the market for some time, the seller might be open to haggling over the asking price.