Last week while driving to an appointment, a guest on a radio show stated that we were in a buyer's market. I almost had to pull over to listen to the rest of the interview. It became obvious he had something to promote as it certainly wasn't the truth. While there are more homes on the market this year compared to last year, there is still an undersupply compared to the normal pre-pandemic years. The Monthly Housing Market Trends Report from Realtor.com stated this:
"While the number of homes for sale is increasing, it is still 43.2% lower than it was before the pandemic in 2017 to 2019. This means that there are still fewer homes available to buy on a typical day than there were a few years ago."
Knowing this, it's important that buyers are realistic in balancing their wants and needs when house hunting. With limited options available, buyers will have more success if they identify their necessities vs. their perfect "wants."
In Frisco and surrounding cities, we are experiencing a major UNDER SUPPLY of homes for sale. A balanced market consists of 6 months of homes available for sale to prospective buyers. In Frisco, there is a supply of only 1.3 months of inventory according to NTREIS trends March reports. In Plano, the supply is 1.1 months, Prosper's housing supply is higher at 2.7 months, but still all of these cities do not have the housing inventory to meet current buyer demand.
The current housing shortage will impact buyers this Spring and Summer but one of the best tips I provide to buyers is to go beyond a standard mortgage pre-approval and instead work with their lender for a fully underwritten approved loan. That removes the mortgage approval contingency which causes sellers to consider full cash offers more favorably than offers with financing. This also ensures you know your budget and options should you participate in a bidding war. It's easy to fall in love with a house that's outside of your reach.
Then, sit down and begin to prioritize your future home's list as follows:
1) Must Have's - These are absolutes that have to work for you and your lifestyle
2) Nice to Have's - These are preferred features that you would love to have but you can live without if a home checks off all your must have's and has a few of your nice to have's.
3) Perfect Have's - These are your dream features you don't need, but if these are present in a home including the must-have's and most of the nice to have's, you have found THE house.
I always appreciate and ask my clients to share this list with me so we can continue to refine the list along the way and keep focused on their objectives. On occasion I find buyers start to classify all 3 categories as must have's. This causes buyer anxiety as a perfect house does not exist. I gently remind my buyers again to review their list again to see if their re-classification is truly what they expect. In every situation, they do tend to make adjustments but realize they don't need to have it all.
Looking for a great agent to help you with your home buying journey? Call me today and let's get started on a great home buying experience.