Years ago, I made a decision to start reading more of the news instead of watching it.
My reasoning was pretty simple.
News outlets are competing for our attention. And sometimes, the more dramatic the headline, the better.
What's that old saying in journalism?
"If it bleeds, it leads."
Unfortunately, housing news is often no different.
I was reminded of this when I came across a recent CNBC headline:
"September Housing Data Shows Market in a Deep Freeze."
The article highlighted some pretty discouraging numbers:
- Pending home sales dropped 7.3% from August and 11.3% year-over-year.
- Housing starts fell 4.56% to an annualized 859,000.
- Homebuilder sentiment reached a 14-year low.
Now, I'm not suggesting those numbers should be ignored.
But I do think we're missing some important context.
Let me explain.
Remember the housing market during COVID?
Buyers were waiving inspections, offering tens of thousands over asking price, and competing against 15 other offers just to get a home under contract.
It was absolute insanity.
If that housing market was 120 degrees, and today's market has cooled down to a comfortable 78 degrees, does that mean we're frozen?
Hardly.
It means the market has changed.
And depending on which side of the transaction you're on, that change might actually be a good thing.
For years, we complained that there weren't enough homes for sale. Buyers had limited options, sellers held all the negotiating power, and purchasing a home often felt like a competition rather than a financial decision.
Now, in many markets, buyers have more choices, more time to make decisions, and more room to negotiate.
And I'm seeing it firsthand.
Just this week, three purchase contracts came across my desk.
Purchase #1: The buyer negotiated a $9,000 seller credit toward closing costs.
Purchase #2: The buyer received a $48,000 credit toward closing costs and an additional $20,000 toward roof repairs.
Purchase #3: Another buyer negotiated a $12,000 credit, plus an additional inspection-related concession structured to help pay off the Veteran's car loan at closing.
Three different transactions. Three buyers taking advantage of opportunities that simply weren't as readily available when the market was red-hot.
Now, do these three transactions mean the entire housing market is booming?
Of course not.
But they illustrate something I think gets lost in the headlines.
A slower housing market doesn't necessarily mean a bad housing market.
In fact, for a well-prepared buyer, it can mean exactly the opposite.
And here's where I want to be clear.
I'm not suggesting you run out and buy a home simply because sellers are negotiating.
The monthly payment still needs to make sense. You should have sufficient reserves, feel comfortable with the long-term commitment, and purchase a home because it fits your life and finances.
A $20,000 seller credit doesn't make an unaffordable mortgage affordable.
But if you've already done the math, you're financially prepared, and you've been sitting on the sidelines waiting for an opportunity, I wouldn't let a dramatic headline make that decision for you.
Mortgage rates will fluctuate. Market conditions will change. And negotiating opportunities won't always look the way they do today.
The national headlines tell us what's happening across millions of homes.
The individual transactions tell us what's possible for a buyer.
And right now, I'm seeing opportunities.
I'm Jimmy Vercellino, reporting live from the scene.
Thinking about purchasing a home?
Let's talk about what the numbers look like for you and whether today's market presents an opportunity worth exploring.