Bidding Wars? No More!

The housing market may have seemed a bit bipolar and off its meds this last year, but the good news is it appears to be leveling out! From what we’ve experienced, it seems like there’s been a year of bidding wars. But don’t get me wrong because I will be the first to say, “a house is worth as much as someone will pay for it!”.

For the people pre-qualified and who have been working hard towards their goals, they may have had their hat in the ring a few years ago in purchasing a home but have found themselves frustrated and defeated! The good news is, things are starting to calm down. I encourage those with the “American Dream” of Homeownership to keep the faith and know the market is cooling off slowly but surely from what I see.

Why is this happening? Well, I can only project from my standpoint. People who were deadset to move to a specific area have had the cash or ability and have made that move. Our community shoppers left are the pre-qualified buyers tirelessly watching the listings hoping to get their bid in on their budget. In the meantime, I’ve been keeping an eye on listings and seeing a lot of price cuts over the last few weeks. So this seems to be forcing the hand of the sellers who are really wanting to sell, to lower the prices to be able to sell their listed homes since the BOOM is slowing down.

Rates are still historically low. So regardless, of what we’ve been seeing for listing prices, it is still an amazing time to apply for a mortgage. It may not be “the early 2021 ALL TIME low”, but rates are still very low. It’s been a long stretch of a “Sellers Market”, but as we see listings sit we may get back to times of buyers being able to have more of an opportunity to negotiate for the home they want.

With that being said, you must know your buying power. There are safe fails in place to ensure you do not get a mortgage payment beyond your means. So if you find a home that is “the one”, make sure you are working closely with your mortgage loan officer on the importance of buying power. If you have a good loan officer who works well with their realtor partners, then you will be set up with a “dream team” behind you to negotiate. Your “Dream Team” should get you your dream home, but also the best financial investment possible.

We are all happy to see this crazy market get back to a little less “extra”. Happy Shopping.

I’m licensed in WA State and Searchable on Google, or email chandra@penmortgage.com for questions