Monday, January 15, 2024 / by Richard Eimers
In recent years, soaring mortgage rates have chilled the enthusiasm of homebuyers and deterred potential sellers from entering the market due to the prospect of higher loan costs.
This prolonged period of cautious waiting has led to a notable slowdown in the real estate sector. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), estimates a substantial 18% decrease in existing home sales last year, following a 17% decline in 2022.
As financing costs gradually decrease, there's optimism for a resurgence in sales volume. Selma Hepp, Chief Economist at CoreLogic, anticipates a boost in home sales activity in 2024 compared to 2023. The decline in mortgage rates is expected to motivate more sellers to trade their existing homes, alleviating the market's inventory shortage and stimulating increased transactions.
Evidence suggests that homebuyers' patience is waning, even with higher borrowing costs. A recent Bank of America survey indicates a significant drop froms ...
Saturday, October 14, 2023 / by Richard Eimers
It’s still a seller’s market, but its strength has declined. Buyers now have a little leeway with sellers and notably more bargaining leverage with lenders.
NEW YORK – Despite being challenged by low inventory and high mortgage rates, house-hunters have some bargaining power with lenders who have money to lend yet fewer mortgage applicants. They’re competing for a shrinking pool of homebuyers, which gives applicants a bit more leverage.
Real estate agents say today’s motivated sellers are also more open to certain buyer requests that they probably wouldn’t have entertained a couple of years ago during the pandemic-driven housing boom. Now, to prevent a sale from stalling or slipping through their fingers entirely, they’re more willing to help buyers out with closing costs or to acquiesce when buyers ask for repairs to be done as a condition of sale.
A third money-saving route for homebuyers, according to agents, is to approach sellers, buis ...