HAMPTON ROADS, Va. (WAVY) — After months and months of bidding wars for homes, there’s a new phase happening in the real estate market.
Now, homebuyers are doing the opposite instead of offering more than the asking price for backing out of deals left and right. 10 On Your Side asked an expert about the cooling off of the market.
According to the National Association of Realtors, pending home sales dropped 8.6% since May. Higher interest rates and home prices then impacted potential buyers.
Better Homes and Gardens Real Estate’s Barry Jenkins has been in the real estate business for 24 years. With about a month’s worth of inventory in Hampton Roads right now, Jenkins says the market is stable, but it is a seller’s market.
“[With] some houses, we get 15, 20, or 25 offers on it because everybody wanted to buy the same house,” said Jenkins. “Well, now you’re not competing with that extreme amount of people. You might be up against 3 or 4 people.”
For those looking to buy a house right now, he suggests focusing on the “why.”
What is the reason why you want to buy a home?
“The data is very clear. When you look at real estate from a ten-year vantage point, it always comes out on top. And that’s because we always have a demand for a roof over our heads,” said Jenkins.
This week, the Federal Reserve raised its key interest rate three-quarters of a percent to between 2.25 and 2.5%. Rate hikes increased the cost of borrowing money and increase the costs.
“There’s a lot of changes that have occurred and because of that, there’s a lot of creative opportunities, different types of loans, different payment schedules, different interest schedules, all variations of that kind of help you to make the best decision for you.”
For sellers, Jenkins recommends hiring an agent and selling the house at a respectable price to get the money you need.
The National Association of Realtors are expecting a 13% drop in sales for the year 2022 with a rebound in 2023.