Chicago, IL (PRWEB) July 22, 2014
Although home buyers and sellers are working with the same sales and price conditions in the real estate market, The Federal Savings Bank learned that these buyers have different ideas of who has leverage.
According to a Redfin release from July 9 titled "Redfin Agents Report Disconnect Between Buyers and Sellers", home sales went down 9 percent year over year in May, but sellers are still overvaluing their properties when they put them on the market. It is not uncommon for homeowners to take some time to adjust their prices, but the current delay is atypically long. While sellers are pushing for a higher profit, buyers are attempting to get a lower price with a more aggressive offer. This is because affordability is declining, and many consumers are unwilling to raise their bid in a competitive market.
Redfin Chief Economist Nela Richardson said that buyers' willingness to walk away from a poor deal is actually good for the housing market. In fact, sellers have lost their power over buyers in many markets, particularly in the Midwest, where only 12 percent of Redfin agents say sellers have more leverage. According to Boston.com on July 14 in a release titled "Goodbye Seller's Market?", this trend has also been seen in the Boston area, as more for-sale signs are popping up and the number of transactions is slowing.
The Federal Savings Bank, which has much of its business centered in the Midwest, thinks prospective home buyers should apply now for a mortgage and take part in the bidding process for homes. Mortgage rates have fallen since early spring and home prices are trending higher due to a lack of housing inventory. If home buyers are gaining an edge in the bidding process, then now is a good time for prospective mortgage applicants to submit their paperwork to get involved!
For information about getting a low cost mortgage for the perfect home, contact the Federal Saving Bank, a veteran owned bank.