For real estate agents with clients on a budget, the stress of finding the perfect home with all the amenities they are seeking can be a challenge. However, as we exit the most competitive season for home buying, now may be the time to find their dream home.
According to data from the National Association of Realtors, the median price of an existing home slid for the second consecutive month to hit $253,500 in August after reaching an all-time high earlier this summer. The median price of a previously lived-in abode had hit $263,300 in June.
According to realtor.com Chief Economist Danielle Hale, median sales prices typically decline a bit heading into the fall.
“Summer is a big time for home purchases, so that families settle in before school starts in the fall. In the fall, the types of homes that sell are smaller for people without kids,” she said. “So they tend to be less expensive.”
Lawrence Yun, NAR’s chief economist, pointed out in a statement that steady employment gains, slowly rising incomes and lower mortgage rates generated sustained buyer interest all summer long, but unfortunately, not more home sales.
“What’s ailing the housing market and continues to weigh on overall sales is the inadequate levels of available inventory and the upward pressure it’s putting on prices in several parts of the country,” he explained.
Many clients on a budget must factor in myriad factors in the equation, including closing costs, repairs, furniture and décor, landscaping and garden equipment, tools, moving costs, cleaning and appliances.
According to Melissa Rolland, a Tolland, Ct., Realtor, many clients find that things that may pop up that they should be prepared for – and know that they can get through them, just like other homebuyers have gotten through.
“They begin the hunt and quickly realize that the type of house that they really, really want, is way out of their budget, and they must make some compromises on location, amenities, or increase their budget,” she said.
Ultimately, it is important for agents to walk their clients through the homebuying process and educating them about what could happen, and with the end in mind, knowing that their closing day is coming, too.