For everyone that has told you, or for every post you might have seen that implies that the “housing market is changing”, that is old news. It has changed. In our opinion, the change results in more opportunity than we have seen in years. Let’s paint the picture explaining how we came to this conclusion. 

The last 2-3 years are now being referred to as the “pandemic housing boom”. Interest rates crept as low as 2.6%, and home values soared. Beginning in 2019, home buyers capitalized on these low rates, ranging from first time home buyers to trade ups. With that being said, in the middle of record low rates, at what point did the buyer pool change their stance? What caused them to say, “this interest rate to sales price offset no longer makes sense”? Truthfully, we believe this realization came about before interest rates made it to 7%.  

We have to remember that there is far more to an offer than sales price and interest rate. In the height of bidding wars, buyers were being radical as it related to appraisal shortfalls, inspections, etc. At what point did the combinations of these risks offset the interest rate? The market began to realize that this was a dangerous combo. This combined with the Fed’s rate hikes has resulted in the market we see today.

What exactly is the market climate now? In short, sellers are still able to sell their homes in above average time frames compared to market norms. Sellers have re-introduced buyer concessions in efforts to either assist with buyer closing costs or rate buy-downs. The occasional bidding war exists for the perfectly maintained property, but even those are becoming smaller by the day. In our opinion, buyers have more leverage than we have seen in a very long time. As a buyer, you should be going to see homes (within your means to purchase: current rates + sales price) and making offers that make sense to your budget, even when that is below list. Days on market are now in your favor. In fact, many things are in your favor. 

Sellers. Now is the time to be picky with your agent. You should have always been, but now more than ever. One of our INK RVA agents would love to exceed your expectations. 

This evolved market will bring out frustration in sellers, buyers, and agents alike. Sellers who did not want to list their home for max value, be it for moral reasons or because they were not interested in paying the higher sales price for their next home – now do not want to sell for less and are frustrated at the higher rates. Buyers who were unmotivated for low rates and high prices, are equally as unmotivated for decreasing prices at higher rates. 

There is no perfect time to buy a home. The timing has to line up with your family, timeline, and finances. Any market can be leveraged in your favor, but that requires guidance. We remain thankful for the trust of the Greater RVA area, and would love to discuss how this changED market can be leveraged for your family or investment portfolio.