In Part 1 of this topic, it became clear that a number of factors could combine to make what was once affordable now cost-prohibitive. Inflation, rising interest rates and climbing property levies, among other variables, are putting some coveted properties out of buyers' reach.
The velocity of change over the last few years -- in the culture, economy and government -- is head-spinning. Inflation is affecting household cash flow; older social values are jettisoned in favor of new ones; and the world seems to be on the brink of geo-political collapse.
Now that the real estate market is transitioning with softening sales and rising interest rates, it is important to be in the know as a home buyer. Here's how to prepare yourself for the ride:
The real estate market is starting to change. We are experiencing a shift from the sizzling hot seller's market we have had the past couple of years to a more balanced market.
For the past couple years, homes have been selling fast and home values have been increasing at record-breaking rates. The inventory of listed homes on the market has been historically low. This is starting to change, however.
There is a lot of news in the media about the real estate market starting to cool down for sellers and balance out for buyers.
The real estate market is starting to show signs of balancing. This means that the sizzling hot seller's market will be softening up a bit. It won't turn into a buyer's market right away. In fact, home values are still rising.
Home buyers almost always have a professional home inspection performed by a licensed inspection company when they purchase a home. However, it is not a bad idea for sellers to have a home inspection, or pre-listing home inspection, performed as well.
Inflation rates have been high and there is talk of a recession. Sound familiar? This was a similar story back in 2008. Back then the economy dove down into a deep recession and home values plummeted.