If you are a buyer and out there searching to buy your dream home, you may be having real difficulty realizing your dream. There has been a recent shift in the housing market buyer sentiment.
Why is there a shift in sentiment? In one word, frustration! Buyers who were slow to enter the housing market at the early onset of low interest rates and a modest housing inventory are frustrated. With low inventory and increasing prices for houses, buyers are taking a second look at purchasing.
New home construction delays. In an effort to off-set the housing demand of buyers, new home construction is on the upswing in most areas of the country. Yet, with the demand for new affordable homes, comes an increase in new home construction costs due to a limited supply of essential materials and builders passing the cost increases on to new buyers.
Bidding wars. Many sellers are asking and getting at or above listed sale price for their homes. Buyers may find themselves in a bidding war with other potential buyers for one or more properties. Recent national home sales data shows a significant drop in days on market as buyers are acting quickly to gobble up a desired property.
How long this sentiment will last is uncertain. If this is just a knee-jerk reaction or are we beginning to see a new trend? We shall see.
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