There is some good news in real estate these days…the market is SOFT, which means buyers are getting an advantage if they want to jump back into the market. I’m not talking about the mortgage interest rates that keep climbing but the simple logic that there’s more inventory than we’ve had in some time and that’s to a buyer’s advantage.  There’s almost twice as many listings as have been closing recently so that points to lots of choices for buyers. One industry expert says “We are witnessing the greatest buyers’ market in the history of real estate” after Redfin reported that sellers now outnumber buyers by almost 60%.

Although mortgage rates are now @7+%, here’s a glimpse at previous decades and their rates: 1975-9%, ’85-13.5%, ’95-7.9%, ’05-5.7%, ’15-3.9% and ’25-6.7%.

That figure is a national average, as some areas of the country have very few homes for sale vs a ton of them.  Sellers are outpacing buyers, but many are sitting in their Lazy Boy loungers thinking to themselves, “I really don’t have to sell, let’s see what I can get for this place!”  Homeowners are still pricing themselves like its COVID days, expecting dozens of offers over asking price the moment the property hits the market, but those days are gone.  I have once client who’s had at least six offers -all about the same price- and has refused them all, saying they are ‘Too Cheap”.  I become a broken record by repeating over and over, “A property is worth what a buyer is willing to pay, not worth what you need to get out of the sale.”  In our Salt Lake market, there were 962 price reductions in February vs 1,742 in June and there will be more to come as we head into the November/December holidays where folks would rather nest than buy or sell properties.

Buyers are seeing higher rates due to inflation, war, high oil and food prices, and massive layoffs, etc. The Fed just made a big move last week to raise rates in response to growing inflation.  For the first time since 2023 the Federal Reserve unanimously hiked its interest rate to hopefully ensure price stability and promote full employment in the economy. Despite rising rates I’d say write offers if you see properties you like, as it doesn’t cost a dime to make an offer. And, many sellers now are offering to help pay your closing costs to get the loan done.

Unless you’re a cash buyer, you have to get pre-approved with a lender, bank or credit union as you have to prove to a seller that you can purchase, have had a credit check, a job, a down payment, etc. before they agree to negotiate with you.

The right time to buy is when YOU are ready, willing and able.  And methinks rates could be 8% by the end of the year, so get pre-approved now and let’s go shopping!