Competitive Housing Market Leads to More Buyer Compromises

Buyers are making concessions
Limited inventory is forcing buyers to make concessions

Finding your dream home is often easier said than done. In any housing market, it is common for buyers to have to make concessions on some items in a home being purchased. Of course, rising prices, record-high demand, and inventory shortages have forced many buyers to compromise on key features in the home. According to a new study released by the National Association of Realtors® and Morning Consult called the 2022 Obstacles to Home Buying, home affordability remains as the top obstacle for buyers in this market.

The list of compromises

  • 80% of buyers reported compromising on key features
  • 48% of buyers reported paying more for their homes than they initially expected
  • 31% of buyers stated they purchased an older home than they originally wanted
  • 24% of buyers purchased a smaller home than they originally wanted
  • 23% of buyers purchased a home that was in worse condition than they hoped

Summary

In an effort to control the current out-of-control inflation, the Federal Reserve is taking aggressive measures with interest rates. Needless to say, this is impacting home buyers and thus softening demand. As a result, we expect to see home prices stabilizing or even retreating slightly across many markets. As for the South Florida housing market, the most significant factor may very well be the continued adoption of virtual workspaces by many employers. Assuming this newfound way to work continues, we will likely see continued migration to our area. Of course, most of these virtual workers are relocating here from more expensive markets such as New York and California. Do you have questions about the South Florida real estate market? Contact our Live South Florida Realty, Inc. team today at (561) 352-6932.

At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!

By natasha moore

REALTOR® with Live South Florida Realty, Inc.

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