The recent slowdown in the housing market has
Since last summer, more properties have come onto the market; mortgage interest rates have dropped; and the rate of home price appreciation, once in the double digits, is waning.
But that still doesn't help the many would-be buyers on a tight budget.
Affordability is still the biggest hurdle to homeownership, with nearly half of aspiring buyers looking for residences costing $200,000 or less, according to a recent realtor.com® survey.
That may be wishful thinking—the national median home price was about a third more, at $295,000 as of March 1. And home prices are still up 7% year over year. More than 1,000 people who hope to buy a home within the next 12 months participated in the survey.
“The Spring home buying season is an improvement over last year from an inventory perspective nationwide, but 
would-be buyers still face challenges," Chief Economist Danielle Hale of realtor.com said in a statement. "This year, shoppers are going to be grappling with their budgets, rather than competition from a horde of other buyers."
would-be buyers still face challenges," Chief Economist Danielle Hale of realtor.com said in a statement. "This year, shoppers are going to be grappling with their budgets, rather than competition from a horde of other buyers."
Unfortunately, the lower end of the market is also the tightest. The number of homes at or below $200,000 actually declined 7% from this time last year. Ouch. Nationally, inventory is up 6% overall, with the high-end segment ($750,000 and up) seeing the largest surge of homes going up for sale, with an 11% annual increase.
But the decline in entry-level houses for sale could explain why 
the largest group of buyers surveyed has been scouring the market for seven months or more. An additional 26% have been looking for four to six months, while 34% have been searching for only three months or less.
the largest group of buyers surveyed has been scouring the market for seven months or more. An additional 26% have been looking for four to six months, while 34% have been searching for only three months or less.
And the balance of power clearly has shifted away from sellers. With more homes to choose from, just 17% of home shoppers plan to submit offers over the asking price. That's down from 26% last year.
Plus, mortgage rates have fallen to just 4.06% on 30-year fixed-rate loans from 4.06% a year ago. This means buyers get a break with lower monthly mortgage interest payments.
"More homes on the market and lower mortgage rates will help offset some difficulties associated with price gains.
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Looking to sell or buy your home? Contact Carriene Porter at Precision Realty & Associates, LLC. Her years of experience and vast knowledge can assist you in this important decision of buying and selling your home.
Call or text today 801-809-9866!
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