How to Take Advantage When the Market Slows

For the past few years, potential homebuyers have had some difficulty in the housing market. The first half of 2022 hasn’t been kind either with rising interest rates and increasing home values. As a result, the cost associated with owning a home has increased so the competition hasn’t been as fierce.

However, don’t let the higher costs deter you from seeking a home. National data states that home sales are starting to drop significantly, which might also affect the prices. Data from the National Association of Realtors showed that home prices were down almost 6% in July 2022 compared to the previous month. That number also marked the sixth straight month that sales declined.

This isn’t all bad news, especially if you’re looking to buy a home. Some steps you can take to make a slower market work for you include the following:

Be ready to pull the trigger. Finding the right home is more than just perusing listings and deciding you want to live in a particular home. You need to be financially ready. Ensure you have an emergency fund available and know exactly how much money you can afford to spend without going over budget. Consider getting pre-approved and shop around for a loan.
Ask for help. While you know you don’t have to look for a home on your own, you might not need to pay a down payment on your own either. Look in your city or state to see if either offers down payment assistance to make it easier to afford the home you want.
Look for smaller. Resist the temptation to buy a massive home when a smaller one would work better. When your focus is on properties that fit your budget, that doesn’t mean you need to settle. Determine what features of a home are important and think about adding other aspects over time.

Don’t rush into a huge financial decision just because of a slowing market. You can take advantage of this changing market and still end up with your dream home. For more information or assistance, reach out to a trusted real estate professional.

Sources: Time.com, Investopedia.com