4 Ways to Avoid Overpaying in the Current Housing Market |

Abstract

Because the market was so competitive, most people who wanted to 'win the home' would end up paying much more than the listing price. As home buyer demand cools and home inventory climbs, overbidding will become much less common. "As the market shifts, buyers need to focus on their local market rather than getting swept up in national trends." Existing homes, which make up roughly 90% of home sales, saw an inventory increase of 9.6% from May to June - up to a 3-month supply at the current sales pace. With home prices and mortgage rates rising, you might not find your dream home at an affordable price. At one point during the COVID pandemic, sellers were able to list their homes at prices well above their market value. As more homes are becoming available and fewer buyers enter the market, sellers are becoming more realistic about their sales prices. Appraisals tell you how much the home is worth, so you could end up needing to take money out of your down payment savings if your home is valued lower than the sales price you accepted.