The Top Buyer’s Markets
Lending standards and underwriting regulations have loosened and when these factors are coupled with the huge inventories, home buyers have got something to celebrate about. Homebuyers can take their time selecting which homes to buy. In markets such as Chicago and Philadelphia, the inventories are strong forcing homes to stay on the market for long periods and this leads to price cuts. In these markets, buyers are valuable and have strong bargaining power.
“There is no place more delightful than one’s own fireplace.” ~ Marcus Tullius Cicero
The housing market is approaching an equilibrium where sellers and buyers will have equal importance in the industry.
What’s Really Happening in the Buyer’s Markets?
Tight inventory in the nation’s housing market has helped in pushing up home prices by 4.5%, that’s according to the National Home Price Index. But home prices in top buyer’s markets are swinging at 4.0% below the national average while in the seller’s markets, buyers get a discount not exceeding 1%. Ideally, homes in seller’s markets sell faster than those in buyer’s markets. Zillow came with a report that list the top buyer’s markets across the US metropolitan areas by analyzing the sale-to-list ratios, days of homes on the market and the number of price reductions. In a market where the sale-to-list ratio is rated low and discounts are high, most of the listings will’ve to go through price cuts and it will take longer to sell homes. Most buyer’s markets experiences a slow growth most probably because they didn’t experienced job and tech booms.
Investing in a Buyer’s Market
It’s every dream of a home buyer to wake in a sea of buyers’ housing market where homes supply is incredible and prices are way below the national average. Most of the metropolitan areas where these markets are creeping in are those areas which grew because of the manufacturing jobs that are now unattractive to many. For investors who want to build investment properties in these areas, there’re are chances that they will not get their return on investment in the long run. Unless the manufacturing industry revamps or the areas foster tech jobs, the areas will remain to be buyers’ markets for long.
Top Buyer’s Markets in the Country
The economy is recovering and housing market is expected to be a seller’s market because of the first time buyers entering the industry. This isn’t not the case in Detroit, Miami-Fort Lauderdale, Providence and Pittsburgh. These are top buyer’s markets across the US. Most of these metros have a landscape which favors development of homes something has led to huge inventories. They are perfect for young first-time buyers who are looking for affordable homes.