Homebuying competition drops; now’s the time to buy a house

Cutting out the competition

If you’re considering a home purchase in the near future, now might be the time to act. According to new data, homebuying competition is declining, with just 14 percent of Americans planning to buy in the next 12 months.

Who’s buying homes?

According to the National Association of Home Builders’ recently released Housing Trends report, only 14 percent of Americans are planning to buy a house in the next year. That’s down 10 full percentage points since the end of 2017 and 3 percentage points since the start of this year.

On the horizon: where home values should rise and fall

More than 60 percent of those buyers are expected to be first-timers, while 22 percent will be Millennials. About 14 percent will be Gen Xers, 14 percent Boomers and a mere 3 percent senior citizens.

About half of those Millennials and Gen Xers? They’re already on the hunt – and have been for three months or more.

Lower homebuying competition, lower prices?

Though the statistics may worry builders and sellers, the news is good for today’s homebuyers. Less competition typically means more negotiable prices, better deals and more inventory to choose from.

Buyers might stand to find better deals on new construction homes if the data is any indication.

The NAHB’s report shows prospective buyers are largely leaning toward existing homes, with 39 percent saying they’re looking for existing inventory. Just 21 percent want a newly built house.

Residential building permits are up – especially in the West – so buyers looking for new properties might want to head toward the coast for more options.

Where home prices haven’t peaked: the nation’s safest bets to buy – for now

Get today’s mortgage rates

It seems homebuying competition is finally dwindling. Do you want to get in on the less competitive market? Then shop around and see what mortgage rates you qualify for today.