According to Jean Grant, Vice President of HUNT Mortgage, the past few years made those looking to purchase a new home well positioned to get a great property at a great price. Recent buyers were also able to finance the home with a historically low interest rate. Low interest rates and a large amount of inventory created a strong buyer’s market. This spring, as the housing market continues to improve, there is a shift emerging towards a seller’s market. Both buyers and sellers alike need to be made aware of this market shift so they can act accordingly.
The number of homes for sale is currently below average compared to recent years, and low interest rates are still attracting individuals looking to purchase. Unlike in recent years, however, current homebuyers are finding themselves struggling to locate a property that meets all of their needs, and often end up in multiple offer situations when they do find what they are looking for.
“All the more reason to have an experienced Mortgage Consultant and also real estate professional by their side,” says Grant.
Lower inventory can mean some of the best properties are often receiving offers from multiple buyers. This situation can cause buyers to bid higher than the listing price, to increase the chances that their offer is chosen. “Though this can be frustrating for those looking to purchase a home, the current market is great news for the appraised value of properties. Appraisals are often one of the biggest unknown factors that can cause issues when applying for a mortgage,” Grant continues.