Are We in a Buyer’s Market?

Lara DeHavenLake Conroe Homes, Mike Goins Real Estate, Montgomery County, News

Are we in a Buyer's Market?

We have experienced a Seller’s Market for many years. This means that demand exceeds supply, which benefits the sellers in pricing. In fact, during the pandemic, the Seller’s Market hit a fever pitch. Now many experts are starting to see that the market has switched quickly. Let’s explore today if we are in a Buyer’s Market.

What is a Buyer’s Market?

The simple description of a Buyer’s Market is that the supply of housing options exceeds demand. In other words, there are more houses on the market than interested buyers. This gives the buyer an advantage over the seller. They have more options and can usually negotiate a better price.

Why Are There Less Buyers?

According to Dave Ramsey, high interest rates have decreased the amount of prospective buyers. In fact, Ramsey gives the statistic that home prices in Texas have decreased by 1.5% when you compare Q3 this year to Q3 last year. Higher interest rates adversely affect the overall home price for people who cannot pay cash for a house.

Are We in a Buyer’s Market?

According to WFAA, Texas is in a Buyer’s Market due to several observations. First, there is a larger inventory of homes for sale than buyers. There are also fewer bidding wars. Very few homes are being sold above the asking price. It is now common to see sellers reduce the price of their home for sale. All of these factors combine to signal that we have entered a buyer’s market.

Additionally, Realtor.com placed both the city of Houston and Montgomery County into the Buyer Market category. Last month in Montgomery County homes sold for 3.72% less than the original asking price. Clearly, the real estate market has flipped.

Consequences of a Buyer’s Market

If you are a potential buyer, you can expect to have time to consider different homes. You won’t be pressured into putting in an offer for above asking and trying to sweeten the deal by offering to forego an inspection. Things like this happened all the time during the pandemic and to the detriment of the buyer. Knowing the current market you can expect to be able to pay the asking price or even negotiate the price down. You might even get the seller to sweeten the deal by offering extras. However, you should consider hiring an experienced agent to help you throughout this process. One that understands the market and has sharp negotiation skills.

On the other hand, if you are a seller, you can expect that there will not be a bidding war or feeding frenzy on your listing. Prepare your home to present its best foot forward. Keep in mind your home’s curb appeal and invest some time and/or money in increasing traffic to your house. Think of ways to make your home stand out from other options. Hiring an experienced real estate agent is key in getting your home seen by as many potential buyers as possible and setting your price competitively.

The current real estate market has switched to a Buyer’s Market. Potential buyers can benefit from this trend with wise counsel. Consider calling Mike Goins to represent you whether you are buying or selling. He has the experience to navigate this ever-changing real estate waters.