The housing market has been on a journey in the last year. Market dynamics have shifted in a way that it has become unpredictable to decide. At this moment, clients and sellers both have a hard time making deals happen.
The rise in home price?
The economic situation is not going through a positive time. Inflation, high mortgage rates, and the high price of houses is not making it easy for clients to purchase houses. Affordability has become the main concern for real estate investors. According to a report by Zillow, a typical monthly mortgage payment is 75% higher today than it was in June 2019. Looking at the financial situation, it cannot be said that the house price is going down soon.
What about housing inventory?
Although the home prices are getting higher, there is a good chance that the availability of the house is also going to grow significantly in number. There is hardly a chance in the future that houses are going to be short in number. During the pandemic, it was hard to construct new houses. But as the world has come back to its previous version, investors are planning to construct new houses for sale. So, the inventory is going to be on track soon.
The expectation of negotiation?
It is always appreciated for clients and sellers to go through negotiation before finalizing any deal. negotiation will always be a part of a house sale in the near future. Make your case as buyers why your offered amount is perfect for the house. Same for the seller. There are a lot of factors in purchasing a deal, so try to make a conversation.