You may be able to get a better deal on a home by waiting until after a market correction.
Interest rate increases may be contributing to the cooling housing market.
You may have more bargaining power in a buyer’s market.
You might want to wait until the market cools down to buy a home. Below, we’ll go through a few scenarios where patience may work in your favor. Of course, your experience and results may vary based on different factors.
1. The economy is experiencing a downturn
The current economic downturn is likely contributing to the recent housing market slowdown. Depending on who you ask, some say we’re already in a recession, while others say a recession is imminent.
Economic uncertainty can impact the housing market. Some people may be extra cautious with their savings during a downturn. If they believe things are unsteady, they may postpone buying or selling homes.
2. Home prices are expected to decrease
Over the last two years, the housing market has been highly competitive. With more buyers than available homes to choose from, prices have increased dramatically. With multiple buyers sometimes making offers on the same homes, bidding wars have caused some homes to sell for more than their asking prices.
But the Federal Reserve has been increasing interest rates in an attempt to cool high inflation. These rate increases can impact the housing market, as the cost of borrowing increases, and fewer people may apply for mortgages.
The decrease in market demand can have a cooling effect on housing prices. Waiting to buy could help you get a better deal on both your purchase price and mortgage interest rate.
3. You may have more bargaining power
As the housing market cools, there may be more homes on the market. The increased inventory may allow you to take your time while looking at homes to find one that suits your wants, needs, and budget.
Waiting to buy a home may also give you more negotiating power. If sellers are receiving fewer offers, they may be more flexible during negotiations. It could help you to ask for the seller to pay for part or all of your closing costs, for example. You could also negotiate appliances, furniture, repairs, or something else.
This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice. Opendoor always encourages you to reach out to an advisor regarding your own situation.
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