Current Surprise AZ home owners are taking their time putting their home on the market. 2020's record mortgage rates have created high demand for homes for sale. Home buyers are challenged with getting out bid, and homes on and off of the market almost instantly. Some buyers have decided to put the home buying hold, and this could be a mistake, here is why:
National Association of home builder reports:
“The length of time spent searching for a home continues to grow.”
The report indicates that 62% of buyers now spend 3 months or more looking for a home, an increase from 58% one year ago.
The main cause for the delay is too much competition. Based on NAR's report most homes are receiving 3.4 offers before it is being sold, this number is an average. Homes for sale in Arizona under 350k are seeing even more offers. Home buyers that get a home are lucky, because for every home that goes under contract, there are still a few buyers that need to start looking for another home again.
Compared to this time last year, the NAHB report shows that buyers are having more success finding homes in their price range. However, it also notes the percentage of buyers saying they’re getting outbid when they make an offer has jumped from 15% to 27%. Buyers are indicating that bidding wars are a major obstacle to finding their dream home (See graph below):
If this is a challenge you’re up against in your Arizona home search, you’re not alone. Feeling stuck in the process can be frustrating, but if there’s ever been a year to power through, this is the one. NAHB noted:
“Difficulties finding a home to buy will likely lead 20% of active buyers to give up until next year or later. That share is up from 15% a year earlier.”
Experts anticipate Surprise Arizona home prices will continue to rise into 2021, and the incredibly low interest rates we’ve seen this year are also forecasted to increase as the economy strengthens. Hopeful homebuyers who decide to hold off on their search until there’s less competition run the risk of finding a more expensive housing market when they start looking again. If affordability is a key motivator behind your decision to buy a home, this winter is still the best time to make it happen.
Todays challenges, bidding wars, high competition for homes, should not be a reason to give up on the home buying process. Contact us, we have a pretty good way to help you position yourself for success when looking for a home to buy in 2020-2021's real estate market.