Are Buyers In The Driver's Seat Now? • Birmingham Appraisal Blog

Abstract

The smell of a market shift is in the air but what does this mean for the average buyer? Over the past two years, buyers have been put through the wringer. The steep rise in home prices, and the market's competitive nature, have tested the resolve of buyers. Will the rate increase be beneficial to buyers? Conventional wisdom would indicate that an increase in rates should not be good for buyers, right? After all, a higher interest rate will result in a higher mortgage payment. June Median House Price - One area that buyers do not have an advantage with is affordability. Since 2016 the median sales price of a home in the Jefferson and Shelby County area of Alabama for the month of June has increased by approximately 58%. These rapid increases in prices were less noticeable with lower interest rates with the recent increases we have had, the monthly payments are becoming less affordable for the average buyer. Price Reductions - What other stat could be more advantageous for buyers than the one that measures price reductions, right? Over the past several years we have not seen a significant increase in price reductions because sellers had buyers beating down their doors to make an offer. The existing buyers are benefitting from an increasing inventory of homes, less competition from other buyers, and more price reductions.