07/28/2023
A reason why July 2023 is a good time to buy your first home is that the psychology of home sellers is shifting. Here’s what we mean.
Buying or selling a home is an emotional transaction. Two primary emotions – fear and greed – drive buyer and seller decisions.
In a housing market with declining home prices or a weak U.S. economy, home sellers might feel fearful and reduce their asking price more quickly to avoid losing a sale.
Conversely, in an upward-trending market, feelings of greed emerge, challenging a buyer’s ability to get a good deal.
Recently, home sellers have grown more confident.
First, Altos Research data reveals that new home listing prices are increasing faster than the median sales price of all homes, which suggests a rise in seller greed. Next, fewer sellers are reducing prices compared to prior years another showcase of seller confidence.
And finally, today’s home sellers now offer fewer concessions, leaving home buyers with fewer ways to lower their interest rate.
However, it’s a finding from Fannie Mae’s monthly sentiment report that highlights how quickly market expectations changed. For the second time in eight months, U.S. consumers project home prices will be higher a year from now, which means that the window for a good deal in housing is nearly closed.
Buyers who act quickly will get access to the best homes and prices. Later in 2023, home affordability will be worse.
Saul Mendoza
P: 813-551-3905
E: [email protected]
W: Sm-estates.com
