Why Homes Are Staying on the Market for Longer

In November and December, it is historically the best time of year for buyers. Historically, buyers can command a little bit lower of a price after the higher prices throughout the year. Sellers who waited to list their homes also used to be able to move their homes before the end of the calendar year. Let’s take a look at why home sales are slower and how a fast cash offer could be a good way to sell your home before the end of the year.

Interest rates have gone up

A year ago, interest rates fell below 3%. Now they are trending higher. The average 30-year mortgage rate in Q4 of 2022 was just above 7%. The high interest rates right now mean that the affordability of a home is just out of the question. Consider a $500,000 home with a 30-year mortgage and an interest rate of 6.9%. With a 20% down payment and closing costs, a buyer needs $115,000 in cash on hand. Then, the average monthly payment will be about $2,600. Many people simply haven’t saved enough money and can’t leverage that monthly payment. If you just listed your home, a fast cash offer may be a better way to sell your home.

Prices haven’t fallen as much as interest rates have increased. While housing prices have stabilized, the prospect of owning a home remains very expensive for some people. Many people are waiting for the prices to come down even further.

It’s become a buyer’s market

During the month of September, around 27.5% of homes on Zillow had a price cut. This was a new high. Houses are staying on the market longer. Instead of making an offer on the day of the showing, buyers can now go home and sleep on whether or not a home is a good fit for them.

Buyers are also in the position to ask the seller to do a little bit more in terms of price. For example, a prospective buyer might feel more inclined to ask the seller to knock the price down a little bit if the buyer will be installing something like a new fence or carpet.

If you are encountering too much of a “buyer’s market,” you might benefit from getting a fast cash offer on your home.

Finding a partner to help you sell your home for cash

If you are looking for someone to buy your home quickly, before the end of the year, you might want to consider a fast cash offer on your home. Houston Capital Home Buyers will give you a quote in as little as one business day and you could potentially sell your home for cash within seven days.