Even though home buyers are purchasing homes at a brisk pace this year, there are still some concerns for the prospects that have not yet bought. The biggest challenge for many are just getting a foot in the door, no pun intended. There are more families making offers and missing out, than buyers actually purchasing homes. That’s the quagmire and our number one concern for tomorrow’s home buyer.
Lack Of Inventory: The main culprit for the complete turnaround of the market. Supply and demand now back in favor of the seller. If inventory were more abundant, there would be more options for buyers and fewer multiple offers on homes. The lack of inventory has started the tidal wave that we are now experiencing. The lack of inventory will more than likely continue through the end of the year with many homeowners holding out longer before selling.
Home Prices On The Rise: Those homeowners that are delaying selling their property understand the cycle has turned and prices are heading up. Buyers are under a time crunch and also realize that prices will escalate in the immediate future. The domino effect of low inventory and high demand has increased home prices by double digits in most cities and towns throughout California and the nation. If home prices continue this trajectory, some buyers will be priced out of the most desired communities such as Davis, California.
Increase In Mortgage Rates: Lost opportunities in recent bidding wars have cost those prospects dearly in higher mortgage rates. If a buyer bought a home at the start of the year, rates were below 4% and home prices has not picked up to the current level. The unfortunate circumstances of losing a home to a higher bid, combined with the rise in rates and prices are a trifecta that has created much angst and sleepless nights for consumers.
All Cash Investors: Investors are back with a fury. That’s when you know real estate is rocking and rolling. Investors are opportunist and have taken advantage of buying properties with all cash offers. In many parts of Sacramento and other affordable areas, investors are buying the bulk of the inventory, which leaves little chance for the first time buyer. Even though buying a home has gotten tougher, it’s still a great time to buy. There are strategies that can put a buyer in an excellent position, even when competing against those all cash investors. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home and easy access to view local area homes for sale in Davis, California and the surrounding communities.