Where Are All the Buyers? Let’s get real about real estate.

I closed six homes in May. I consider that a wonderful month helping buyers and sellers. I love what I do, it’s one of my many passions. Realtors, sellers and buyers got used to homes selling with multiple offers, over asking, within days of coming on the market.
In the beginning of June I listed two houses in Castaic. I always do Open Houses. The first weekend I had an Open House. I set up my signs, flags, brochures and all the goodies I normally have. I was ready and now waiting for the stream of buyers, and lookie loos. I’m waiting, looking out the window thinking, “This is not normal. No one is coming”. A few hours later two people showed up. That was it. Sunday another Open House, same thing, I had five people come through. This continued every single weekend. Buyers have disappeared and sellers are shocked.
The buyers have taken a break, they’re sitting on the sidelines waiting. If I was a buyer with these interest rate hikes and the economy in chaos I’d be throwing the towel in, too. Enough is enough. But, guess what else I’ve been experiencing? Sellers starting to offer help. I actually have a wonderful, smart buyer that thinks this is still a good time to buy. They don’t like the interest rate, but they’re renting a house and are done with that. They’ve saved their down payment and are in the market looking for a home. Last Thursday I showed them five houses, Friday one. Guess what’s happening? Every house I showed the sellers agents have called me wanting feedback, telling me they’ll credit closing costs, help pay points to lower interest rate for my buyers and willing to drop their price. Now the tables are turning.
Lenders are pivoting trying to help buyers. They’re coming out with different loan programs. I especially like the 30 year loans fixed for five, seven or ten years then turning into adjustable rates with a cap of a rate that’s a lot lower than todays 30 year fixed. Talk to your lender about the new programs.
If you’re a buyer that’s experienced the last few years of making offers, and being outbid by all cash offers or outrageous prices, I’d be out looking at homes right now. There’s more inventory to choose from, sellers are willing to work with you and there’s no competition whatsoever. It’s your window of opportunity.
I’ve been in real estate for 30+ years, I believe it’s always a good time to buy. If rates are low, home prices increase, rates high, home prices soften. I’ve never had a client come to me saying they regret buying a home no matter what rate they paid. The only complaint I have ever hear is they wish they would have kept all their houses. Don’t we all?
Want to buy or sell your house give me a call at 661-645-1334.