Insiders Explain Why Today's Home Buyers' Market Feels Like A Lost Cause

Picture this: you find a beautiful home listed online. It's right within your budget, so you call your realtor, or you go to tour the home, and it's nearly perfect; you can picture living an amazing life here. Knowing that you're in a competitive market, you place a bid as quickly as you can, but you're suddenly beaten out by another bidder or an all-cash offer. You're forced to scrap all those hopes and dreams you envisioned in the house and head back to the drawing board. Again. 

Unfortunately, this isn't just an imaginary exercise for the majority of homebuyers right now. Even if they manage to find a suitable home, buyers are feeling rejected time and time again, causing what Realtor.com refers to as a "burnout epidemic." Feeling at a loss with the current housing market, some people are simply giving up the chase for now. Learn more about why it feels impossible to close on a house these days and what you can do to keep pushing closer to your dream home.

Sellers may still have the upper hand, but they aren't having a much easier time than buyers; existing home sales rates have been on the decline for over 12 months. New listings are rolling out about 13% slower than they did last year, according to Realtor.com. The reason for this is that sellers still have high expectations for their properties, considering that houses were selling well over their asking price in recent years. Realtor speculates that more homeowners would be willing to sell right now, but they certainly don't want to be stuck in a buyer's position, searching for a home in such a tough market. Even sellers who are determined to move are stubborn on price, only accepting what they feel their house is worth — or more.

This standoff between homeowners and buyers has created a very shallow pool of decent, affordable homes. Simply put, there are just too many fish in the pool, and the big fish will always beat the little fish to the punch. It makes logical sense that sellers would want to accept their best offer, but that doesn't make the rejection any less painful for tired buyers. Many people are coming to grips with the idea that they may never own a home — at least not for several more years — and that the home they eventually settle into will be nothing like what they imagined.

In this market, you might feel like you have to keep refreshing your listings page if you want to find a deal before it's gone. However, it's okay to take a break from the housing hunt when you're feeling overwhelmed. Acknowledge that your feelings of buyer sadness and rejection are totally normal right now, and take time to connect with social supports and get plenty of rest. It's not your fault that finding a home feels incredibly difficult right now, especially if you're a first-time buyer. Historically, children have always fared much better than their parents in America, but now less than 50% of millennials have an equal or higher socioeconomic status than their parents did at their age (via CNN).   

As frustrating as it sounds, experts urge that everyone must keep forging on, despite being unsure about when mortgage rates may go down, or the market may start to unfreeze. Willingness to lower your expectations will help you settle into a home faster, but there's no need to give up on your dream home just yet. Hold tightly to the assets you have, continue saving for a home, and expand your horizons. It's good to take a break, but if you can keep trying, you're sure to find the perfect fit eventually.