Home Buyers Market On The Horizon?

Buyers Market On The Horizon?

I’ve written previously about how since January 2013 the real estate market in Philadelphia, and elsewhere, has been marked by 1) low inventory and 2) high demand which was caused feeding frenzies that led to an increase in home sale prices. This low supply and high demand have caused what I believe is about a 10% bubble in home values for the preceding 10 months, and has made home sellers extremely happy.

Looking forward however it appears that the pendulum is swinging back in favor of buyers.  Demand is decreasing due to seasonal factors in the housing market, rising interest rates and domestic economic concerns i.e…debt ceiling negotiations, Obamacare, and Washington D.C. gridlock.  At the same time inventory is slowly increasing, up from 8 months inventory supply in August to 8.1% in September, or staying the same, either of which will lead to lower home sale prices.  So for all those would be home buyers out there the question becomes do you throw your hat into a multiple bid situation and attempt to jump on that house you love now while rates or low or is it better to hang tight and wait for less competition and lower prices (at presumably higher interest rates) in the months to come?