What the shortage in housing inventory means for home buyers
With the number of houses for sale at an all-time low, it can be harder than ever to find a new home. Still, that doesn’t mean it’s a bad time to look. In fact, with interest rates expected to rise, you might regret not shopping for a house now.
But in a hot housing market like right now, you have to be prepared because deals happen fast. In a low inventory market like this, buyers are going to find a lot of competition for houses that are available. You might even end up in a bidding war. With more buyers than sellers, the basic laws of supply and demand push prices higher. It’s important to stand out from the pack by having your financial documents in order when you make an offer. They can either be the obstacle or pathway to your dream house and should be given priority as such.
Even though home prices are higher than the past, they may be more affordable in 2018 than they will be next year. With interest rates on the rise, you could save a lot of money by moving to a new house this fall. Under the current market conditions the longer you wait, the farther you move away from your dream house, financially.