Buyers came out this Spring to take advantage of low rates and relative low prices in the neighborhoods they wanted to buy in. Now it is late Summer and a lot of home buyers still have not been able to buy a home. Home buyers have become demoralized by the lack of inventory and intense competition for a limited selection of homes for sale. If this sounds like you, you are not alone.
Since the beginning of the year home prices have risen and continue to rise because of the run up of prices due to bidding wars between home buyers. Home sellers are sitting back and waiting for the home buyer that will offer the most for their house. Many buyers have lost confidence they will not be able to purchase a home. Home buyers have seen opportunity in the current real estate market. With record low interest rates, lower home prices and increased confidence in the economy, many have thought the same thing, “this is the time to buy”. But without homes to purchase, many will be left out in the cold this summer.
A survey by Redfin found these results when surveying home buyers.
- Believe that the market may be shifting against them: 46% of respondents believe now is a good time to buy, down two quarters in a row; in the first quarter it was 56%. Thirty-two percent believe now is a good time to sell, up two quarters in a row; in the first quarter it was 13%.
- Are more confident that home prices are on the rise: 61% believe prices will increase, up two quarters in a row; in the first quarter it was 32%.
- Increasingly prefer a conventional sale over a foreclosure or short sale: 62% of respondents were “very interested” in conventional sales, up from 57% in the second quarter and 48% in the first quarter, marking a return to normalcy after years of bargain-hunting;
- Are more likely to back off when faced with multiple offers: 31% said they would step back from a bidding war, compared to 28% in the second quarter, the first time we asked this question. Just 8% would do whatever it takes, compared to 10% a quarter earlier.
- Have growing concerns about the economy, despite rising home prices: 27% of respondents cited general economic weakness as a concern about buying this year, up from 24% in the second quarter and 20% in the first quarter.
Our suggestion to you is to not stop looking for homes. Many buyers will be demoralized and stop looking which will lower the pool of buyers and increase the chance that your offer will be accepted. Persistence is key.
Current Homes For Sale in the City of Yorba Linda
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