For the last several years, buyers have heard a lot about everything working against them.
Higher interest rates. Rising home prices. Multiple offers. Low inventory. Sellers who had very little reason to negotiate.
But the market is changing, and buyers have something they haven’t had much of in a while: leverage.
Here in the Prescott area, we’re seeing more homes available, longer days on market and frequent price reductions. That doesn’t necessarily mean we’re in a buyer’s market across the board, but it does mean buyers have opportunities they may not realize are available.
More Inventory Means More Choices
When inventory is tight, buyers often feel pressured to make quick decisions. They may have to compromise on location, condition, features or price simply because there aren’t many options.
Today, buyers have more homes to choose from.
That gives you the ability to compare properties, watch the market and make a more thoughtful decision rather than feeling like you have to grab whatever becomes available.
Price Reductions Are Creating Opportunities
One of the biggest changes I’m seeing is the number of price reductions.
That’s important because your home search shouldn’t necessarily stop at the very top of your budget.
If your comfortable purchase price is $500,000, for example, there may be good reason to keep an eye on homes priced at $510,000, $515,000 or even $525,000.
A home that doesn’t fit your budget today could become an option after a price reduction. And depending on the seller’s circumstances and how long the property has been on the market, there may also be room for negotiation.
This is where having someone actively watching the market for you can make a difference.
Longer Days on Market Can Create Flexibility
A seller who has been on the market for a few days may feel very differently from a seller who has been waiting 60, 90 or 120 days for an offer.
Time can change motivation.
That doesn’t mean every seller is going to accept a low offer. It does mean there may be opportunities to negotiate things that were much harder to negotiate a few years ago.
That could include purchase price, closing costs, repairs, seller concessions or other terms that make the transaction work better for you.
What About Interest Rates?
Rates are still one of the biggest concerns I hear from buyers, and understandably so.
But waiting for the perfect interest rate has its own risks.
If rates eventually come down, more buyers may return to the market. Increased competition can put upward pressure on prices and reduce some of the negotiating leverage buyers have today.
For some buyers, purchasing when there is less competition and refinancing later if rates improve may make sense.
For others, waiting is absolutely the right decision.
The important thing is to look at the entire financial picture rather than making the decision based on the interest rate alone.
Fall May Create Even More Opportunity
As we head toward fall and winter, our local market typically slows.
Some sellers will take their homes off the market and wait for spring. Others need or want to sell and may become more motivated as the number of buyers decreases.
That can create opportunities for buyers who are prepared and paying attention.
You don’t have to rush into buying a home simply because the market is changing. But if you’ve been sitting on the sidelines because you assumed buyers still have no negotiating power, it may be worth taking another look.
The market we have today is very different from the market we had a few years ago.
And right now, some of that difference may be working in your favor.
If you’re considering buying in Prescott, Prescott Valley, Chino Valley or Dewey Humboldt, I’d be happy to help you look at what’s available, what’s sitting, what’s dropping in price and where there may be an opportunity worth watching.
Kristi Patterson, REALTOR®
Prescott Realty Pros
Iannelli & Associates Real Estate
Bringing Your Dreams Home
