3 Advantages of Being a Home Buyer Right Now

There’s no debate that the recent spike in mortgage interest has left many buyers on the fence. Nonetheless, this current market has shifted favorably for home buyers as competition dries up.

Here are just a few trends that may benefit you when you go to buy a home today.

1. WAY more Selection
During the pandemic, housing supply hit a record low at the same time buyer demand skyrocketed. This made it hard to find a home because there just weren’t enough to meet buyer demand. According to Calculated Risk, the supply of homes for sale increased by 39.5% for the week ending October 28 compared to the same week last year. Not only are there more available options of homes in the Portland Metro to choose from, you have more time to evaluate your decision without the fear of a home being snatched.

2. Bidding Wars… Old News?
Over the past two years, Portland real estate was hard to come across without a ridiculous bid 5-10% over asking price and no terms favorable to you as the buyer. That is no longer the case! According to the National Association of Realtors (NAR), the average number of offers on recently sold homes has declined. This September, the average was 2.5 offers per sale. In contrast, last September, the average was 3.7 offers per sale.

3. Power to Negotiate
When you have less competition, you have more negotiating power as a buyer. Many were willing to waive appraisal or inspection, to try to win a bidding war. But the latest data from the National Association of Realtors (NAR) shows the percentage of buyers waiving those contingencies is drastically reduced.

This is a GOOD thing! The appraisal and the inspection give you important information about the value and condition of the home you’re buying. And if something turns up in the inspection, you have more power today to renegotiate with the seller.

A survey from realtor.com confirms more sellers are accepting offers that include contingencies today. According to that report, 95% of sellers said buyers requested a home inspection, and 67% negotiated with buyers on repairs as a result of the inspection findings.

Bottom Line
While buyers still face challenges today, they’re not necessarily the same ones you may have been up against just a year or so ago. If you were outbid or had trouble finding a home in the past, now may be the moment you’ve been waiting for. Reach out to a local real estate professional like myself to start the homebuying process today.