That’s a reality Shelton is also underlining to her clients. “When demand exceeds supply, your prices are going to go up,” she said. “So with all of these extra people that have been looking and waiting, we’re already at a lack of inventory and it doesn’t look like that’s really changing anytime soon. We have to make sure that our buyers are going in very prepared, even though rates are [getting] lower.
“I do definitely foresee there being a surge of homebuyers coming into the market which will then only increase home prices because we’re going to go back to seeing five, six, seven offers on a house where now we’re seeing maybe two, three, four.”
Could buying now be the right move for certain borrowers?
Plenty will wait it out until they know the Fed is definitely cutting before they take the plunge. Those who are in a position to buy now, though, could see some advantages in the current market – namely, the prominence of seller concessions, which largely faded during a prolonged period of heavy bidding activity during the COVID-19 pandemic and beyond.
Ultimately, Shelton said prospects for her local market are strong looking ahead, with a possible dip in rates and a shift toward a more buyer-friendly environment suggesting a welcome degree of balance could finally be on the way.
That can only be good news for brokers and their clients – although borrowers need to be fully aware of the type of market they’re likely to face in the future. “I do think that we’re headed back into what is going to make it a more stable market with a little bit lower rates to help people have home affordability,” she said, “but also, that pool of homebuyers needs to be well educated that going in, they’re going to have to have additional funds.”
