The strong seller’s market is begging to show some small cracks. For quite a while, sellers have been able to tack on higher prices than recent comps and get their asking price. Steadily rising home values and buyers anxious to scoop up any available home in light of tight inventory and rising mortgage rates contributed to the ever-escalating prices. The past few months, buyers began to see signs of the market tilting in their favor. And today, there is more good news for home buyers.
More Homes are Selling for Less than Asking Price
A recent article from the Florida Realtors Association reported that 62 percent of homes sold in 2018 sold for less than asking price. And predictions for 2019 is that the trend will continue with 77 percent of homes selling for less than asking price.
The Reasons according to the Article:
- Home prices have been steadily on the rise but list prices have been increasing at unrealistic levels
- Sellers’ expectations are too high
The result for some buyers whose homes are overpriced? They actually end up selling their homes for an average of 1.5 percent below the market.
More Good News for Home Buyers: Mortgage Rates Hit 3-Month Low
The week of December 13, 30-year mortgage rates fell to their lowest rates in 3 months to 4.63 percent. Mortgage applications that were in a lull just a few months ago are starting to pick up.
If you’re a home buyer looking for expert guidance, contact us.
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