Smart and Exciting Reasons To Buy a Home This Summer
If you’re wondering whether buying a home this summer is a smart move, you’re not alone. Many potential homebuyers are waiting to see where real estate market trends go next. But here’s what savvy buyers are starting to notice:
This summer might be one of the best opportunities to buy a home in recent years. Here are three key reasons why it may be the right time to take action.
1. Buyers Have More Negotiating Power
Over the past few years, sellers dominated the housing market. Today, the tide is turning. See the graph below, which uses Redfin data to compare the number of active buyers and sellers.
Back in 2021 through early 2023, buyer demand (blue line) far exceeded available listings (green line). That created intense bidding wars and rapid home price increases.
Now, with more sellers than buyers, the market is shifting. This gives homebuyers more negotiating power. Sellers may now be more willing to:
Offer price reductions
Cover part of the buyer’s closing costs
Make home repairs before closing
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:
“. . . with housing inventory levels reaching five-year highs, homebuyers in nearly every region of the country are in a better position to negotiate more favorable terms.”
And while inventory has grown, we’re still not seeing an oversupply. National housing inventory remains below historic norms, keeping the market balanced and avoiding the risk of a crash.
2. More Homes Are Hitting the Market
If you’re looking for more home options this summer, you’re in luck. Realtor.com data shows that more homes were listed this May than in May 2024 and May 2023.
This increase in housing inventory means buyers have more choices when searching for the right property. Whether you’re looking for a specific layout, location, or price point, the chances of finding a match have improved.
Jake Krimmel, Economist at Realtor.com, shares:
“With more fresh inventory hitting the market, buyers have better opportunities to find a home that fits their needs.”
Now is a great time to explore listings in your target area and schedule showings before competition increases.
3. Home Prices May Be More Flexible
More homes for sale means they’re not selling as quickly as they were during the height of the seller’s market. As a result, some sellers are adjusting their home prices to attract buyers.
According to Realtor.com, 19.1% of home listings had a price reduction in May.
This is the fifth straight month of increased price cuts, showing a return to more normal real estate pricing trends. While most sellers are still pricing realistically, those who initially overpriced their homes are more likely to adjust.
A recent article from The Street puts it this way:
“Although sellers have had the upper hand in the housing market over the past few years, houses are now staying on the market for longer, shifting negotiating power back to homebuyers.”
This doesn’t mean you’ll find steep discounts on every home, but it does suggest there’s more flexibility for serious buyers. Don’t forget to explore the many different home loan programs out there too.
Final Thoughts: Why Buying a Home This Summer Makes Sense
This summer brings a promising mix of advantages for buyers:
More homes to choose from
Reduced competition
Increased price flexibility
Stronger negotiating power
If you’re planning to buy a home in the near future, now may be the perfect time to get started.
Want help navigating your local housing market or getting pre-approved for a mortgage? Let’s contact us and make your homeownership goals a reality.
Source: Keeping Current Matters
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