Tag Archive for: Market Shift

When Buyers Get More Realistic: Shifting Trends in the Housing Market22

The housing market is seeing a shift, signaling opportunities for buyers. While inventory remains tight, changes in buyer behavior and market trends are creating a more balanced landscape. Here’s how buyers are navigating this evolving market.

Current Market Conditions

Low Inventory Levels

In July 2019, there were 1,387 active listings. By July 2023, this number dropped to 553, reflecting a 60% decrease in inventory.

National Trends

On a national scale, housing inventory has increased by over 30% year-over-year, marking the largest jump since 2017.

Interest Rates

Mortgage rates have fluctuated, climbing from around 3% at the beginning of the year to approximately 5.5%–5.6%. These rates are influencing buyer and seller behavior alike.

How Buyers Are Getting More Realistic

Adopting Contingencies

Buyers are increasingly relying on contingencies, such as home inspections, to protect their investments. These clauses allow for careful evaluation of properties, reducing risks during the escrow period.

Slower Pace of Transactions

With fewer bidding wars and reduced competition, buyers have more time to evaluate properties and negotiate terms.

Leveraging Escrow Protections

Escrow plays a critical role in ensuring fair transactions. In Pennsylvania, earnest money is held in compliance with the Real Estate Licensing & Registration Act (RELRA), safeguarding buyer and seller interests.

The Role of Contingencies

Why They Matter

Contingencies protect buyers from unforeseen issues, allowing for deposits to be refunded if specific conditions aren’t met.

Impact on Sellers

While contingencies may seem to favor buyers, they ensure a fair process for both parties, reducing potential disputes.

Conclusion

When buyers get more realistic, they make smarter decisions that align with evolving market dynamics. By using contingencies, understanding escrow procedures, and leveraging current trends, buyers can approach the homebuying process with confidence.

Contact Realty Network Group for expert guidance in navigating today’s real estate market!