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!