A Drop in Home Sales May Be an Opportunity for Buyers – Here’s Why

A recent report from the National Association of Realtors shows that home sales have declined 7.7% in November 2022 and mark ten months of continued decline. However, this drop in home sales may be an opportunity for buyers.

Inventory shortages have been driving up prices and creating a competitive market that often favors sellers over buyers. Now, with the temporary lull in home sales, some buyers may be able to take advantage of lower prices and still find their dream home without having to battle it out in negotiations.

The real estate market is cyclical, and while the current lull in sales may seem discouraging, it could be a great time to jump into the market. Buyers who wait until the market picks up again may find themselves competing with other buyers and driving prices much higher than they are right now.

5 Benefits buyers should know

Lower prices as a result of the temporary lull in home sales

Home sales in California and throughout the US have seen a steep decline this year, with many potential buyers opting to hold off on purchasing a property. While it's no doubt been difficult for homeowners hoping to capitalize on the real estate market, there is a silver lining – lower prices! Buyers can now find more affordable options and don't have to stretch their budget. This decrease in prices also encourages those who may have previously been put off from the high cost of buying a home to reconsider and invest in real estate. Home sales may be down this year, but that could very well mean great things for buyers on a budget.

Increased inventory due to fewer buyers in the market 

With a decrease in demand for homes due to the current dip in sales, buyers can now find more options that fit their budget as there is an increased inventory of properties available. With more homes – and thus more choices – buyers are sure to find what they are looking for, whether it be a larger home for an expanding family or a smaller home with an excellent location. More choices also give them negotiating power when making an offer on their dream house. They may even qualify for special incentives and attractive financing options unavailable during times of low inventory since sellers often need to be enticed to take actions that ensure that buyers know that they are serious about making a sale! Ultimately, more inventory brings far more advantages than disadvantages, so while recent reports of increasing home inventory levels may not grab headlines, homebuyers should definitely take notice and enjoy the benefits available in the current real estate market.

More negotiating power with sellers due to less competition

One of the major benefits that buyers can take advantage of during this period is greater negotiating power when dealing with sellers. With fewer home sales and less competition, buyers can be in a stronger position to make a deal on their dream home. By working with their local real estate agent and understanding the current market conditions, they can have more leverage when it comes to negotiating with sellers, which can help them get a lower price and better terms.

Less pressure to make snap decisions on the spot

Unlike in a hot real estate market where buyers may feel pressured to make a decision quickly, buyers now have more time to consider all their options and think about the long-term implications of any potential purchase. This can help buyers make an informed decision about the best house for their needs and also gives them more time to look into financing and other important details that may not have been as pressing in a hot market.

Opportunities to invest in attractive off-market properties

Finally, buyers should also be on the lookout for off-market properties, which are homes that are not listed online or in other public listings. These homes can offer attractive investment opportunities for buyers who are willing to do some research and network with local real estate agents and investors. Not only can off-market properties be more affordable than those on the market, but also investing in them may yield better returns – making them an attractive option for buyers looking to benefit from the current real estate market.

Capitalize on the current market

Overall, while recent reports of declining home sales may not seem like good news initially, buyers can capitalize on the situation by taking advantage of the lower prices and increased inventory in their local markets. With more negotiating power, less pressure to make snap decisions, and attractive off-market opportunities, buyers have plenty of reasons to start investing in real estate. This market condition may mean it's time for prospective homebuyers wading through today's market to take the plunge and seize all of the opportunities available.

Looking for a real estate agent in California? The team at Alvarez Realty Group is here to help! Our experienced agents can guide you through the process of buying or selling a home in California and provide personalized advice on the current market conditions. Contact us today to get started.