We posted earlier how home buyers are gaining bargaining power due to the increased volume of homes for sale. You can find that article here. We have more news that may benefit home buyers. According to Mortgage 101, investors are starting to slow down their trend of snatching up cheap homes with cash payments. This means that traditional home buyers will start to have more leverage and more opportunities to get the home they want.
This may not bode as well for sellers as the quick offers from cash buyers drying up leads sellers to have to take mortgages which can drive down costs and take more time. Buyers, by comparison have more leverage and will eventually force the banks to start loosening mortgage requirements to allow more people to buy as pressure mounts from buyers.
The inventory of homes available will likely start to take longer to sell as more reliance on traditional buyers becomes the norm. The factors listed are expected to bring home values within a narrower range within their markets. This is expected to slow the growth of housing prices overall. That rate, however, is still expected to be well above the traditional average. This slowing will help more buyers get into the market, however, it may slowly drive sellers out.
Everyone is trying to speculate based on the statistics and trends that present themselves, and that is something we are attempting to do here. From the source article we cite here, to our analysis, to any other site that seeks to project the market trends. Things can and do tend to change. Please keep this in mind as you read any of these types of assessments. To get a more current view on the state of the market, talk to us in person. Use the blue “Live Chat” button on the left hand side of the page.