While rising mortgage rates are making homebuying more expensive this year, there is some good news for those who are still hoping to buy a home.

As the market has cooled this year, some of the intensity buyers faced during the peak frenzy of the pandemic has cooled too. Here are a few trends to consider when looking to buy a property nowadays.

1. More Homes To Choose from

During the pandemic, home supply reached an all-time low while buyer demand skyrocketed. This combination made finding a property tough because there just wasn't enough to fulfill buyer demand. The supply of properties for sale grew by 39.5% during the week ending October 28 compared to the same week last year, according to Calculated Risk.

Even though it’s still a sellers’ market and supply is still lower than more normal levels, you have more options to choose from in your home search. That makes finding your dream home a bit less difficult.

2. Bidding Wars Have Eased

The intensity and regularity of bidding battles have been one of the top real estate stories over the last two years. But times have changed. With more selections, you'll likely face less competition from other house purchasers. According to the National Association of Realtors (NAR), the average number of offers on recently sold properties has decreased. In September, the average offer per sale was 2.5. In September of the previous year, the average offer per sale was 3.7.

If you tried to buy a house in the last two years, you most likely witnessed the bidding war frenzy firsthand and may have been outbid on multiple properties along the way. You can now reenter the market and enjoy searching for a home with less competition.

3. More Negotiation Power

When there is less competition, you have more negotiating power as a buyer. Over the last two years, more buyers have been willing to forego critical phases in the homebuying process, including as appraisals and inspections, in order to win a bidding war. However, according to the most recent National Association of Realtors (NAR) data, the percentage of purchasers who waive those contingencies is decreasing.

This is fantastic news for buyers. The appraisal and inspection provide critical information regarding the worth and condition of the home you're considering purchasing. And if something is discovered during the inspection, you now have additional negotiating leverage with the seller.

According to a realtor.com poll, more sellers are now accepting bids with stipulations. According to the report, 95% of sellers reported purchasers requested a house inspection, and 67% discussed fixes with buyers based on inspection findings.

Bottom Line

While buyers confront obstacles today, they aren't always the same as they were a year or so ago. If you've been outbid or had problems locating a home in the past, this could be the opportunity you've been looking for. Let's get started on the home-buying process right away.