Sellers may need to adjust expectations as bidding wars fade, mortgage rates soar, and buyers gain leverage. Despite some positives, such as increased housing inventory and ongoing sales, the market dynamics are evolving, challenging sellers’ assumptions and strategies.
Key Points:
- Sellers face a challenging market as bidding wars diminish and buyers become more cautious, scrutinizing properties and demanding contingencies.
- The recent spike in mortgage rates, reaching 7% from record lows in 2021, has deterred prospective buyers and altered sellers’ financial calculations.
- Homeowners, even if they profit from a sale, may struggle to upgrade due to increased borrowing costs when purchasing another property.
- Despite ongoing sales and growing housing inventory, sellers must adapt to changing market dynamics, including increased buyer options and reduced demand.
- The housing market, once heavily skewed in favor of sellers, is gradually shifting, prompting sellers to reassess pricing and expectations.
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