If you’re planning to buy a home in the next two years, you’re in good company – a huge amount of folks are apparently doing the same!
For this year, home sales are up nearly 8% over last year as lower mortgage rates, demographics, and the economy came together to create an environment for the highest level of purchases since spring of 2007. Realtor.com® registered more than 40 million people looked at listings wanting to buy, according to survey data. Assuming that every purchase may involve two people, the amount of buyer traffic indicates 20 million potential home sales. However, only 6 million sales will be recorded this year at the current pace of sales. What does this mean?
The number of actual transactions is a function of supply. If 20 million households are actually ready and able to buy now, there is a limited inventory available. At the current pace of sales, the country will run out of its full stock of new and existing homes available for sale in 4.7 months. Also, we don’t have 20 million buyers who are planning to buy now. Surveys revealed that 17% of buyers were looking to buy within the next three months. Over half of the active shoppers said their planned timeline was at least six months or more. So, if you just beginning to look and don’t plan to buy for about six months, you are in the company of millions of people with the same plan.
Typically, the buyer’s journey is from three to nine months from start to closing. Home shoppers are at varying stages of their journey at any given time. Even though the peak buying season ends in the summer, the market is not likely to slow; it will probably become more hectic as more buyers get closer to the late stages of their journey and closer to closing.
Along the way, different tasks arise for buyers. At the start, most of your time is taken with gathering information, deciding on your desired neighborhood, and looking at listings. As you move along, you continue to look at homes but also seek mortgage pre-approval, work with your Realtor®, and make offers.
The early issues are finding time to figure it all out and saving for a down payment. As buyers approach the end of the process, the issue shifts to actually finding a home you want and can afford.
Call on Buy Sell Live Atlanta to help you as you navigate on your journey. We’re here to help – contact us today!