It's no mystery that the past few years have been tough for homebuyers trying to find their dream homes. If you've put your home purchase on hold due to affordability issues and fierce competition, you're not alone. A Bright MLS study highlighted the top reasons buyers paused their home searches:
- Inability to find anything within their price range
- Fierce competition
- Available homes not meeting their needs
Growing Supply of Home Listings
Currently, the supply of home listings is increasing. Data from the National Association of Realtors (NAR) shows that inventory has grown throughout 2024, with an upward trend in the supply of existing homes.
Increase in New Home Construction
Today, there are more new home constructions. Builders have increased the number of new developments nationwide, particularly in areas where home supply has been limited. According to NAR, one in three homes on the market is newly built. These new homes are often smaller and more affordable, targeting first-time homebuyers and those with smaller budgets. Additionally, some builders are offering incentives like lower mortgage rates and free upgrades.
Less Buyer Competition
Higher interest rates, around 7%, have taken many potential buyers out of the market. Combined with the increased home supply, this reduces the number of offers and competition you might face.
Home Prices Are Moderating
Home prices are slowing down, a welcome change after rapid appreciation over the last 10 to 14 years. The increase in supply and reduced demand has helped moderate the market to a more normal pace. The average forecast for home price appreciation in 2024 is around 3% to 5%, more in line with historical norms.
Time to Get Off the Sideline
If you've been thinking about purchasing a home, now is the time to act and take advantage of the easing market. Contact me today to evaluate your housing needs and help you find your dream home.
