This content is not the product of the National Association of REALTORS®, and may not reflect NAR's viewpoint or position on these topics and NAR does not verify the accuracy of the content.
If change is coming in the real estate market, then it might be a change that benefits home buyers and sellers. Most home sellers either buy another home, rent, or combine households. In each situation, they are participating in the housing market. Home sellers are often home buyers.
Housing inventory is creeping up. Although as a REALTOR I use months of inventory as a metric, what most home buyers care about is simple: how many homes are for sale, in the area I want, for the price point that I can afford.
How do we gauge how competitive a real estate market is? A few factors include 1) how many offers for each listing; 2) how many contingencies or cancellation rights are being removed by the buyer; 3) how much above list price the accepted offer is. Add this unconventional factor to the end of the list: how many buyer’s agents you get calling you begging & begging for their offer to get accepted.
2022 is not following the same trends as 2020 or 2021. Each year has been unique.
This year, “Home shoppers are facing a one-two affordability punch this spring: Quickly rising mortgage rates are compounding affordability challenges that have been brought on by record home value growth. Yet so far, in spite of rising costs, buyers remain ready to pounce on any inventory that hits the market.” (Zillow).
If the market balances out, which in California might mean still being a Seller’s Market but a less extreme Seller’s market, then both parties in a transaction can benefit.
Good news for a Seller: it will be easier for you to do a contingent sale where you are selling and buying at the same time, but only having to move once.
Good news for a Buyer: the fast pace of the housing market went from 90 MPH to 70 MPH. We are still going fast, but you have a shot at finding the house of your dreams.
You may have seen headlines about a new forgivable down payment program. The Cal HFA website describes it as, “The Forgivable Equity Builder Loan gives first-time homebuyers a head start on this with immediate equity in their homes via a loan of up to 10% of the purchase price of the home. The loan is forgivable if the borrower continuously occupies the home as their primary residence for five years. The Forgivable Equity Builder Loan is a forgivable subordinate loan program that may only be used with a CalHFA first mortgage.”
This program attempts to address the competitive home prices that first time home buyers (and anyone entering the real estate market) faces.
If you are curious about whether you or someone you know could be eligible, please reach out to me! I can connect you with a loan officer and give you action steps towards buying a home. If you are considering selling, then call me today so I can give you an accurate range of what your home might sell for!