Why a record buyer’s market still isn’t helping buyers qualify
There were an estimated 1.53 million home sellers active in the market nationwide in August, the most since the start of 2020, while the number of active buyers barely moved from July’s record low. Nashville alone saw an estimated 139.3% more sellers than buyers, the widest gap of any metro Redfin tracks.
On paper, that kind of imbalance should hand buyers real leverage. Home price growth has already cooled to 1.6% year over year across the nation’s buyer’s markets, compared with 5.5% in the five remaining seller’s markets, according to Redfin.
Having more room to negotiate does not help a buyer who cannot qualify for the loan in the first place, and elevated rates and prices are still keeping plenty of would-be buyers on the sidelines, particularly those sitting just above conforming loan limits.
Kyle Schoenmaker (pictured top), SVP of sales at Rocket Pro, said navigating a market like this requires brokers to think outside the box.
“In a challenging market, it really requires a lot of the lenders to be creative with the solutions that they’re providing,” Schoenmaker told Mortgage Professional America. “If I had to offer one piece of advice for all of the brokers out there, it would be to stay curious. Now is the best time to ask questions, find the best competitive advantage for them, and make sure that they’re doing truly what’s right by their clients and by their business.”
