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Good And Bad News For Home Buyers: Home Inventory Is Low But So Are Interest Rates

By Siddharth Mariappan

recent national survey suggests that home buyers will find a continuing inventory shortage in 2016. According to a report of the National Association of Exclusive Buyer Agents (NAEBA), low inventory plus increasing home prices could present challenges for home buyers this year. One NAEBA agent predicted that “Low inventory and crushing demand mean most sales will be bidding wars.”

Bidding wars can be complicated and stressful. To be competitive, Buyers need an experienced agent to advise them about strategies for being successful in a multiple offer scenario. Examples of ways to entice Sellers include the use of escalation clauses (your offer price will increase by a certain amount against other higher offers, up to a set price limit) and information-only inspections (if Buyers don’t like inspection results, there is no further negotiation, but they can void the contract).

On the plus side, mortgage interest rates remain low, currently around 3.75% for 30-year loans.

If you are considering buying a new construction home, give me a call at 904-570-1216 or email me atjonkbrooks@gmail.com.

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