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If you've been paying any amount of attention to the real estate market, you may have noticed that mortgage rates have been steadily increasing throughout most of 2022. In fact, the
average interest rate for a 30-year mortgage is over 5% as of early June.
When the Federal Reserve first lowered national interest rates at the start of the COVID-19 pandemic, buyers essentially flooded the market. Now that interest rates are increasing, some sellers are lowering their asking prices to make sure that buyer interest doesn't begin to wane. If you're searching for your dream home, you may be able to find it at a reasonable price.
Dropping Prices
There are several signs indicating that the market is adjusting to current economic conditions. Because of inflation and rising interest rates, many sellers fear their homes will remain on the market longer than intended, which could drive the price down and make the property unappealing to prospective buyers. Even though the buyer's market is still highly competitive, sellers don’t want to risk a slow sale, so some have started lowering their asking prices.
In May 2021, 6.2% of homes reduced their listing prices. During May 2022, this number increased to 10.5% of homes. It may seem like a small adjustment, but it's not the only indicator.
Increased Inventory
According to the
May 2022 Monthly Housing Trends Report, the inventory of active listings in the U.S. increased by 8% over last year, which indicates that the competition is increasing among sellers. If a seller notices that there are many homes being placed on the market in their area, they may not want to be in a situation where their home is skipped in favor of the others.
The number of newly listed homes has increased by 6% over last year, which is another sign of possible price drops to come. The national median home price is still up compared to 2021 and 2020, but if more and more sellers start to reduce their asking prices, this points towards the real estate market shifting back to buyers. When market conditions are favorable to buyers, the negotiating power doesn't remain solely with the seller. Even if a seller hasn't dropped their asking price, they may be open to doing so during negotiations.
Even though interest rates are increasing, now is a great time to buy if you have good financials and access to enough funds for the down payment. Even a small decrease in asking prices and buyer competition should give you a better opportunity to buy a home at the right price.
Mr Lapuma always caring and dedicated to what he does best “Building your Dreamz” after his love for Jesus of course and doing the right thing even when he don’t have to. His integrity can not be questioned and his years of experience are some of the many assets that you will count on if you hire his services.
I have hired Dream Builderz for multiple projects at 2 homes in the past and all of the projects (bathroom remodel, back deck and full roof replacement and repair to front of home with water/squirrel damage) went very smoothly and exactly on budget as quoted.
We had an accident and someone crash into our house - Anthony the owner and his dream builderz team was wondering - they did great work and wore masks when needed to do inside work to keep us all safe ! I would definately recommend them ! And for the price, quality of work and customer service you can’t beat it !!
Very professional. Gets work done in a timely manner. Friendly and talented. Recently had my home sided and new windows placed. Increased my home value quite a bit.
Highly recommend
I am impressed with the service provided by Dream builderz. We hired them for complete renovation of our 2 bedroom and 2 bathroom apartment. During the actual work, They kept me informed of progress and acted quickly if things were not going well or up to my standards. Overall Great experience
Anthony and his crew are superb and always making sure I was well inform while I was out working , my finish floor was done on time and professionally.. Anthony is in my opinion is a caring contractor that cares for his work and finishes the job only if he and I the customer is 100% satisfied .. never once did Anthony complain when I called him for questions about what’s been done day by day and again I have to say his guys and work is above and beyond , I will use Anthony always as long as he is around 👍🙏🏼..
Dream Builderz did an amazing job on our house!! You would not even know that we had ice dams from last years storms. Our house looks new again, thanks Tony!!
We used Dream Builderz to construct a new deck. They did a fantastic job. We will definitely use them again.
Thankyou for your amazing service. From initial start to final completion of the project everything went smoothly. I will definitely give them 5 out of 5 .
Anthony Puma by far was the most professional and detailed builder we had the fortunate experience to work with . His proposal was very well laid out and explained all the details of our renovation. The renovation turned out beautifully, with a few hiccups but to be expected with an old house. His honestly and integrity made a stressful home improvement project more bearable. His workers were professional, thoughtful and pleasant to work with throughout the renovation. We love our new dining room, laundry and bathroom. I would highly recommend Dreamz builders for your home improvement project . Thank you Anthony and team The Bernier's
Good Afternoon Tony,
On behalf of Sarah, Ed and myself, we want to thank you personally for all your patience, professionalism and timely communication to bring Sarah's kitchen disaster project to its final completion. We recognize the arduous challenges you faced with the property management person from the start as well as the age of the building and its problems. I know it would have been easy to walk on this project even before it got underway given the daunting obstacles that were presented to you.
Without the dedication, competency, respectability and hard work done by yourself and all your support workers and contractors, Sarah never could have gotten her beautiful kitchen. Please thank each and every one of them on our behalf for a job well done.
Sarah is very happy and deeply appreciative of how her kitchen turned out and we are very thankful to you for sticking with us till the end. We are all looking forward to a brighter future.
Thank you again for your support and patience. You are truly a professional contractor. Have a wonderful Summer!