The number of houses on the market is very low which is common for this time of year but right now we may be at a record low. There is definitely demand for housing and while some home buyers have given up others are buying houses.
It is true that prices are high but it is also true that interest rates are low.
Here are some of the reasons why some buyers are buying and others are not:
- Some buyers have stopped looking or making offers.
- Buyers who have not been pre-approved will not be able to get an offer on a house accepted.
- People who are holding out for a bargain won’t be buying any time soon. We all look for bargains but in this housing market, they are very rare.
- Buyers who are looking for housing in neighborhoods where the median price is more than they can spend.
- People who can not pay cash but are competing against cash buyers for “fixer-uppers”
It is alright to sit this year our ad come back stronger next year. Homebuyers who have decided to sit this year out should keep their pre-approval letter up to date and make sure that they have enough cash on hand so that if that perfect house does come on the market they have a shot at buying it.
As we head into spring there will be more houses on the market but the demand for them will remain higher than the supply.
