Light at the End of the Tunnel
It’s been tough to be a home buyer. The housing market has gone through more than one bout of turbulence since the pandemic started. With interest rates driven up by the Federal Reserve’s combat against high inflation, and housing inventory still low, 2023 wasn’t the easiest year to become a new homeowner. But there’s light at the end of the tunnel.
Sweetening the Deal
Prospective homebuyers have a few tailwinds at the moment.
For one, winter isn’t a traditional time to buy a home. That means while there might be less on the market, there is also less competition from other buyers.
And then there are current interest rates. Rates were more moderate over the past decade, so many sellers today may have lower rates on their existing mortgages. Selling their home would probably mean buying a new one, which suggests that many homes on the market today are there out of necessity. So, to close the deal, sellers may look to sweeten it.
Indeed, more sellers are now providing relief to buyers in the form of cash for home repairs or covering a portion of closing costs.
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