Can Cooling Housing Market Save Home Buyers Going Above Their Budgets?

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A countrywide housing crisis is somewhat cooled down now, home prices have got moderated, and bidding wars are no longer as usual.

According to a new survey, buyers are still astonishing through their higher rate of budget to have their dream home. The survey confirms out that real estate agents still have to struggle, even in a more buyer-friendly market with more options, to present the house in accord to buyers’ needs. As a real estate agent said: “Finding the right house is still very challenging, to get quality, they need to go up.”

March survey of 1800 home buyers, who purchased homes within the previous four years, depicts that 38% of home buyers increased their spending limits by thirty-two percent from a year earlier. And as compared to $16,510 in the early 2018 survey, they spent their budget now by an average $20,000.

“People are going above their budgets more than we expected,” A real estate agent said.

Amid other reasons, more buyers are spending extravagantly: In spite of the housing market being cooled down, home prices are still rising whereas inventory remains comparatively low, particularly in large coastal regions.

In April, there were 1.8 million present home listings that are more than 1.67 million of the previous year. According to the National Association of Realtors, it is below the normal level. Average pay increases of Americans have risen above ‘Three percent’ that seems to be downing the financial strain.

According to a real estate brokerage, Competition for housing has come down. Home buyers who bid on homes faced bidding wars 15% of the time last month. That was quite down from 60% a year ago. The survey asserts that almost half of the home buyers opined that the most challenging part of their house hunt was seeking the right home—which declares that the issue of the shortage of home inventory has not been completely solved.

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