A Different Way to Look at the Current Housing Market by Gregg Pechmann with Ross Mortgage

by Ed Dembowczyk

Home sales are near 30-year lows. Most people hear that and think something must be wrong with the housing market. I look at it differently.

When fewer homes are selling, it often means fewer buyers are competing for those homes. And that can create something buyers haven’t had much of over the last several years: Leverage.

Think back to the crazy housing market when buyers were competing against 10, 15 or even 20 offers. People were offering over asking price. Inspection contingencies were being waived. Sellers weren’t interested in paying closing costs. Buyers were simply trying to win the house.

Today’s market can look very different. A home that’s been sitting on the market for 60, 90 or even 120 days may have a seller who is much more willing to negotiate.

That could mean:

• Seller paid closing costs

• Money toward an interest rate buydown

• Repairs after the home inspection

• A lower purchase price

• More favorable contract terms

• More time to actually make a good decision

Here’s the interesting part.

Home sales may be near three-decade lows, but home prices remain historically high. That tells us something important. Low transaction volume does not automatically mean housing values are collapsing. It means fewer people are moving. For the right buyer, that’s an opportunity.

I’m not saying everyone should run out and buy a house today. I’m saying don’t confuse a quiet market with a bad market for buyers. Sometimes the best opportunities show up when everyone else is sitting on the sidelines.

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Ed Dembowczyk

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