Are we in a buyers market? I know it’s hard to imagine since it seems like forever since those words have been uttered. The relentless competition out there for every home listed for sale makes it seem like were in a perpetual sellers market.
Now there are signs the market is shifting away from a seller-dominated market to a more buyer friendly one. A few reasons are cash purchases are down from 42% to 37.9%, inventory is on the rise, and loan originations are up a whopping 32% for federally chartered banks to end the second quarter of 2014.
As always we must ask what does this mean for you? Well, with cash investors looking to invest elsewhere and increased inventory it won’t be the feeding frenzy for buyers looking for the right home and they’ll be able to leverage the market shift to negotiate more favorable sale terms like seller credits? With interest rates as low as they have been all year buyers’ purchase power will only be improving as we enter the fall months. Now, there could be some down side as many buyers may feel they’ve simply been priced out of the market but that’s where your mortgage plan comes in to play. Getting a solid mortgage plan is the first step no matter what the market is doing so to get yours click on my name below.
These remaining months of 2014 could prove to be the best time in a while for those buyers waiting to make their move.