There are many reasons why home buyers have become frustrated with the housing market. The prices of homes are at an all-time high and there is no sign that they will fall.
According to the S&P CoreLogic Case-Shiller Home Price Index, March saw a 20.6% increase in home prices nationally. This is the latest month that the index has released data. It also takes into account rising mortgage rates. They were significantly higher in March than they were at the beginning of 2022.
If you try to buy a home today, you will likely end up paying more. It’s actually very difficult to find a good deal on a home purchase these days. It doesn’t mean it can’t be done, but the stars must align in order for this to happen.
What you can expect to see in a deal today
The inventory in today’s housing market is severely deficient. This is not a problem that only exists in certain cities. It’s a problem that affects all of the country.
Sellers have a lot more flexibility when it comes time to charge more for their homes because there aren’t enough homes available to satisfy buyer demand. Homes are often offered multiple times when they hit the market, which can drive up their prices. It will be difficult to get a great deal on a home until the inventory is increased in a meaningful manner.
The problem is compounded by the fact that mortgages are becoming more expensive. You might pay more to buy a house today than you would for a mortgage.
How to make a deal
Although homes are expensive today, it doesn’t mean you won’t be able to find a bargain. To find the best deal, you might need to work with a professional real estate agent.
Be aware that an underpriced home may indicate a problem. There’s a good chance that the house in question has a costly issue. Don’t buy a home without having it inspected. Although some buyers may waive inspections in order to accept offers, it could prove costly.
If you are able to make an offer on a property and a seller is desperate, you may be able to negotiate a great deal. You might find that the seller is unable to move due to a job or other reasons and must close their sale in a matter of weeks. You might be able to get the home for a reasonable discount if you have enough cash.
Don’t expect to find bargains when you go on a home search. If you are able to pay a moderate amount for a home, it will be a blessing in disguise.