While it’s still a seller’s market with low inventory across the board, we’re starting to see the market stabilize. It’s an excellent time for sellers to list their homes, but buyers have more purchasing power than ever before, and it’s important to understand how that can help you in the current market.
Let’s dive into purchasing power and how to use it to your advantage.
What Is Purchasing Power?
Purchasing power is a homebuyer’s ability to buy a property funded by mortgage money. The amount a buyer can borrow is based on their income and current mortgage rates, which are constantly adjusting and changing. Purchasing power is essentially the driving force behind how homes are priced because, without it, homes would sit on the market due to buyers not being able to afford them.
As a buyer, there are a few key factors to note that we will discuss below to help you navigate the current market.
Home Prices On The Rise
Median home prices have been lower this year than we saw in 2022, but that doesn’t mean they’re low. Many economists and experts agree that home prices are on the uptick, so there will never be a cheaper time to purchase a home than now.
Settling Interest Rates
Many buyers have been on the fence about buying due to increased interest rates. While they are higher than we saw last year, they are starting to settle, and who knows where they will be in a few months or at the beginning of 2024. Becoming more accustomed to the higher interest rates and realizing what this might mean for your budget can help you when looking for homes.
Sellers Are Willing To Negotiate
As we mentioned before, we’re still in a seller’s market, but that doesn’t mean sellers are taking advantage of buyers. Homes are sitting on the market much longer than in 2022, so if a buyer is interested in their property, sellers are willing to work with buyers and negotiate to close the deal. As a buyer, you want to be competitive with the offers you’re writing, but that doesn’t mean you should be afraid to ask sellers for things you want and need.
As a buyer, you still have power in the current market! If you have any questions or are wondering if now is the time for you, please contact us! We would love to review your options and see how we can help you!
