Is the Shifting Market a Challenge or an Opportunity for Homebuyers?

<article class="post-408931 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-408931"><span class="entry-date">August 10, 2022</span><div class="entry-header center-block text-center"><h1 class="entry-title">Is the Shifting Market a Challenge or an Opportunity for Homebuyers?</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Is+the+Shifting+Market+a+Challenge+or+an+Opportunity+for+Homebuyers%3F&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fis-the-shifting-market-a-challenge-or-an-opportunity-for-homebuyers%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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<p><img alt="Is the Shifting Market a Challenge or an Opportunity for Homebuyers? | Simplifying The Market" class="webfeedsFeaturedVisual wp-post-image" decoding="async" link_thumbnail="" loading="lazy" sizes="auto, (max-width: 549px) 100vw, 549px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2022/08/09072640/20220810-KCM-Share-549×300.jpg" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2022/08/09072640/20220810-KCM-Share-549×300.jpg 549w, https://files.simplifyingthemarket.com/wp-content/uploads/2022/08/09072640/20220810-KCM-Share.jpg 750w" style="display: block; margin-bottom: 5px; clear:both;max-width: 100%;" width="358"/></p>
<p>If you tried to <a href="https://www.simplifyingthemarket.com/2022/07/13/should-i-buy-a-home-right-now/?a=712984-fa409495d5d70154d03a25e81e9540e2">buy a home</a> during the pandemic, you know the limited supply of homes for sale was a considerable challenge. It created intense bidding wars which drove <a href="https://www.simplifyingthemarket.com/2022/07/21/think-home-prices-are-going-to-fall-think-again/?a=712984-fa409495d5d70154d03a25e81e9540e2">home prices</a> up as buyers competed with one another to be the winning offer.<span id="more-46966"></span></p>
<p>But what was once your greatest challenge may now be your greatest opportunity. Today, data shows <a href="https://www.simplifyingthemarket.com/2022/07/26/a-window-of-opportunity-for-homebuyers/?a=712984-fa409495d5d70154d03a25e81e9540e2">buyer demand</a> is moderating in the wake of higher mortgage rates. Here are a few reasons why this shift in the <a href="https://www.simplifyingthemarket.com/2022/07/29/three-reasons-to-buy-a-home-in-todays-shifting-market-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2">housing market</a> is good news for your <a href="https://www.simplifyingthemarket.com/2022/07/15/should-i-rent-or-should-i-buy-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2">homebuying plans</a>.</p>
<h4><strong>The Challenge</strong></h4>
<p>There were many reasons for the limited number of homes on the market during the pandemic, including a <a href="https://www.simplifyingthemarket.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/?a=712984-fa409495d5d70154d03a25e81e9540e2">history of underbuilding</a> new homes since the market <a href="https://www.simplifyingthemarket.com/2022/07/14/housing-experts-say-this-isnt-a-bubble/?a=712984-fa409495d5d70154d03a25e81e9540e2">crash in 2008</a>. As the graph below shows, housing supply is well below what the market has seen for most of the past 10 years (<em>see graph below</em>):</p>
<p><a href="https://files.simplifyingthemarket.com/wp-content/uploads/2022/08/09143009/20220810-MEM-Eng-1-.png"><img alt="Is the Shifting Market a Challenge or an Opportunity for Homebuyers? | Simplifying The Market" class="aligncenter wp-image-46972" decoding="async" height="488" loading="lazy" sizes="auto, (max-width: 650px) 100vw, 650px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2022/08/09143009/20220810-MEM-Eng-1-.png" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2022/08/09143009/20220810-MEM-Eng-1-.png 960w, https://files.simplifyingthemarket.com/wp-content/uploads/2022/08/09143009/20220810-MEM-Eng-1–400×300.png 400w" width="650"/></a></p>
<h4><strong>The Opportunity</strong></h4>
<p>But that graph also shows a trend back up in the right direction this year. That’s because moderating demand is slowing the <a href="https://www.simplifyingthemarket.com/2022/07/26/a-window-of-opportunity-for-homebuyers/?a=712984-fa409495d5d70154d03a25e81e9540e2">pace of home sales</a> and that’s one of the reasons housing supply is finally able to grow. For you, that means you’ll have <a href="https://www.simplifyingthemarket.com/2022/07/22/great-news-about-housing-inventory-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2">more options</a> to choose from, so it shouldn’t be as difficult to find your next home as it has been recently.</p>
<p>And having more options may also lead to less intense bidding wars. <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-05-realtors-confidence-index-06-21-2022.pdf">Data</a> from the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-06-realtors-confidence-index-report-07-20-2022.pdf"><em>Realtors Confidence Index</em></a> from the<em> National Association of</em> <em>Realtors</em> (NAR) shows this trend has already begun. In their recent reports, bidding wars are easing month-over-month (<em>see graph below</em>):</p>
<p><a href="https://files.simplifyingthemarket.com/wp-content/uploads/2022/08/09143042/20220810-MEM-Eng-2-.png"><img alt="Is the Shifting Market a Challenge or an Opportunity for Homebuyers? | Simplifying The Market" class="aligncenter wp-image-46973" decoding="async" height="488" loading="lazy" sizes="auto, (max-width: 650px) 100vw, 650px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2022/08/09143042/20220810-MEM-Eng-2-.png" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2022/08/09143042/20220810-MEM-Eng-2-.png 960w, https://files.simplifyingthemarket.com/wp-content/uploads/2022/08/09143042/20220810-MEM-Eng-2–400×300.png 400w" width="650"/></a></p>
<p>If you’ve been outbid before or you’ve struggled to find a home that meets your needs, breathe a welcome sigh of relief. The big takeaway here is you have more options and less competition today.</p>
<p>Just remember, while easing, data shows multiple-offer scenarios are still happening – they’re just not as intense as they were over the past year. You should still lean on <a href="https://www.simplifyingthemarket.com/2022/07/28/a-real-estate-professional-helps-you-separate-fact-from-fiction/?a=712984-fa409495d5d70154d03a25e81e9540e2">an agent</a> to guide you through the process and help you make your strongest offer up front.</p>
<h3><strong>Bottom Line</strong></h3>
<p>If you’re still looking to make a move, it may be time to pick your home search back up today. Let’s connect to kick off the homebuying process.</p>
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