The real estate market has been the subject of scrutiny as to why it displays certain behaviors. You may have been discussing with a neighbor or friend, “Why is the real estate market so crazy?” Many factors that affect this: interest rates, the power of buyers and sellers, and house inventories. When these factors interact, there are ebbs and flows to property sales.
We have seen an incredible seller’s market for the past two years. Houses had written offers before they were seen, acceleration clauses were frequent, and sellers were getting a lot more value in the equity they had put into their homes. Houses were selling for thousands more than they were listed due to multiple offers. For sellers, it felt like the good times would never end.
Buyers, on the other hand, have had a rough two years. Competing for homes with cash buyers made being aggressive a must. Buyers were competing for houses where the appraised values required additional cash to make the sale. The frenzy to capitalize on low interest rates with miniscule house inventory ran buyers ragged until they either purchased a house for more than they had planned or burned themselves out and continued to rent. Now, frequent interest rate increases have made purchasing a home more expensive for borrowers. I am finding that some conventional loan buyers are terminating contracts due to the increasing closing costs and future instability. It is difficult to want to purchase the most expensive item in your lifetime when global news is full of uncertainty.
Things are changing—there is good news! With this shift in the real estate market, buyers are getting better negotiating power. Some sellers are making price decreases, offering home warranties, interest rate buydowns, and paying closing costs to attract buyers. No longer are sellers able to avoid negotiating on items found in an inspection, or demand buyers bring money for an appraisal gap. Houses are on the market for longer. That is good news for buyers and a change of pace for sellers. Our area is experiencing increased home inventory, so buyers have more choices and leeway. And with these incentives, buyers are finally having the home-buying experiences they had anticipated. They finally get to settle down in the communities they love.
If you have been thinking of buying a home in the Greenhorn Valley, please give Southern Colorado Real Estate Brokers a call. Our office has been servicing this community for over 15 years, and we would love to bring our expertise to help you secure your future. Call us at 719-676-4477 or email Stephanie at stephanie@socoreb.com. We are right off Hwy 165 W, so please stop by Monday through Friday from 9 am to 4 pm to say hello!