When people began the frenzy of buying up homes due to the pandemic-induced desire for more space and low interest rates, it led to soaring prices and aggressive bidding wars.
While the craze has led to some making big money it has also led to buyer regrets who made a buying decision too quickly.
We are beginning to see a light at the end of the tunnel.
The recent trend reports indicate that there’s less competition now than there was a few months ago. Homes are spending slightly longer on the market -16 days on average – and, for the first time since 2018, people no longer cite bidding wars as the main reason they weren’t able to get the home they wanted.
Sellers have also started dropping their prices, with the share of listings that had price drops in July rising to 4.7%, the highest percentage since 2019.
So while these shifts may be meager, they’re positive signs that buying a house is slowly but surely getting a bit easier.
So what does the mean?
For home buyers, this means that there may be more affordable inventory available.
For home sellers, this means that while their home values are still growing, the may need to consider pricing more competitively than they have in the past.
What goes up, must come down.