Buying in a challenging market

Just a few months go, Buyers were going nuts making offers way over asking price, eliminating appraisals and accepting tons and tons of repairs needed on a home because there was so much competition and interest rates were 4%. Unbeknownst to many Buyers, they were actually competing with hedge funds, on-line platforms, and other financial investors that were driving the prices up. This was NOT healthy. It's on of the primary reasons the FED had to slow down this buying frenzy by increasing interest rates. So what's a Buyer to do?

Here's what we know today:

1. Prices are not increasing at crazy rates and are even starting to stabilize in many markets. (Note: 6% annual increases are considered healthy). This is good for the BUYER and SELLER. It represents a fair market to all parties and tends to make Buyers and Sellers behave in more rational ways.

2. The market is not crashing. The market crash in 2008 was due to how lenders were issuing and selling loans. That craziness was fixed and no longer occurs. What we are experiencing now is the ebb and flow of supply and demand.

3. Interest rates are higher. 4% - 6% is considered healthy and normal. The lower rates were the anomaly. Even if the rates go up to 8%. it will be temporary. It's best to keep in mind that while this effects your payments, you can refinance in the future if the rates decrease, and you lock in the rates now if they increase.

4. Because the market has become more even, the unfair and unusual demands that were placed on the Buyer in the past few years are now gone. Buyer can and should get inspections and appraisals. Buyer do not need to offer way over asking-price. Sellers should expect to sell their home in good and stable physical condition.

In summary: This is what a stable market looks like. Both Buyers and Sellers should take a breath and get on with moving forward in a fair and equitable manner.