For much of this summer, homebuilder sentiment was riding high. That’s because so few existing properties are available for sale, causing many buyers to seek out brand new construction instead. As a result, the stock of homebuilding companies temporarily rose in value.

But relentlessly higher rates on home mortgages, now firmly over the 7% mark, have even dampened the outlook for these stocks. As investors are well aware, ever more Americans are being priced out of many desirable homebuying markets. Compounding the problem is that so few homeowners are now willing to sell.

“The supply shortage is making many listings feel hot. This means buyers who are in the market now are duking it out for a very small pool of homes, preventing home values from plunging,” says Chen Zhao, who heads economic research for Redfin, a major realty brokerage.

The explanation behind the dearth of available properties is that many owners with low-rate mortgages are understandably resisting relocation if that means taking on a pricier mortgage to buy their next abode.

“Roughly 9 in 10 homeowners with mortgages have a mortgage rate under 6%. Tons of homeowners scored an incredible deal during the pandemic: a 3% mortgage rate for the remainder of their 30-year loan,” Zhao says.

The happiness felt by many homeowners with low-cost mortgages contrasts sharply with the psychological pain experienced by so many now seeking to buy their first home.

Lawrence Yun, chief economist for the National Association of Realtors (nar.realtor) says that nearly 60% of metro areas posted price gains during the second quarter of 2023.

“Home sales were down due to higher mortgage rates and limited inventory,” Yun says. Still, he notes that there are some metro areas where home prices are now sliding. These include such high-cost cities as San Francisco and Los Angeles.

Would-be homebuyers have other reasons to feel somewhat hopeful, according to Nicole Bachaud, a senior economist for Zillow, a national real estate firm.

“As summer winds down and kids head back to school, home shopping gets put on the back burner. Traditionally, buyers who remain in the market get a bit more bargaining power heading into the fall,” Bachaud says.

Here are a few pointers for buyers:

-- Seek out overpriced properties after price reductions are taken.

In an area where the market is beginning to shift slightly in favor of buyers, it sometimes takes sellers time to adjust their thinking.

“Some sellers have an entitlement mentality and cling to overly high expectations about the value of their property,” says Sid Davis, a Utah real estate broker.

Have you targeted a neighborhood where you have a strong interest in one or more homes that you and your agent believe are priced well over market value? Davis suggests you may wish to wait until the sellers come down on their own before you start bidding.

A significant price drop is often a signal that once-stubborn sellers are ready to bargain in earnest, maybe because they face a deadline of their own.

“Perhaps the sellers have moved out of town to take a new job, and their old property has gone vacant. Then, as soon as they have to start carrying two mortgages, they become much more eager to bargain in earnest,” says Davis, author of “A Survival Guide for Buying a Home.”

The key to a wait-for-a-price-drop strategy is to keep a close eye on a home of interest so you can submit your bid at the opportune moment and not lose the property to another purchaser.

“Make sure you stay in close touch with your buyer’s agent so you’ll know the minute a price drop occurs. It’s also a good idea to set up an alert to notify you by text or email that a price drop is occurring,” Davis says.

-- Don’t waive your right to a home inspection needlessly.

In strong sellers’ markets of past years, would-be buyers who had to contend with rival purchasers often waived their right to a home inspection to increase their appeal to sellers.

But Tom Early, a veteran real estate broker, says inspections are nearly always a vitally important idea --especially for those planning to buy a property that’s over 15 years of age, which could have serious problems.

In most cases, inspectors don’t find serious shortcomings. Still, Early says that many lesser issues that are found can be used to the buyers’ advantage in gaining concessions.

Suppose, for example, that your inspector projects that the roof on the house will likely fail in three to five years. With this information, you might convince the sellers to cover part or all of the cost of a new roof.

-- Avoid insulting the owners of any property you’d like to own.

In areas where rising inventories are giving buyers more power, Davis says some prospective buyers try to take liberties that can backfire.

One common mistake involves any statement you might make that wounds the sellers’ pride in their home. Another misstep involves making a ridiculously below-market bid which so stuns the owners that they may refuse to deal further with you.

“People who make ludicrously low offers are often the victims of their own folly,” Davis says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

Last February, an 83-year-old geophysicist lost his wife when her decade-long battle with cancer came to an end. After his grievous loss, the man resolved to sell the five-bedroom Virginia house where the couple had raised their children. The only question: Where to move next?

To assist with his search for the best available retirement community, the geophysicist engaged Anna Novak, the founder of Simply Downsized, a small enterprise focused on helping seniors make sound housing transitions. Recently, the man chose a nearby continuing care community that overlooks the Potomac River near Washington, D.C. The place offers a range of services from independent living to memory care.

“Some older people wait too long to leave a big house they can no longer handle. Still, those who do move are definitely happier if they find a community that’s a good fit. It’s much better to move before a health crisis hits,” Novak says.

There are now around 70 million in the baby boomer population cohort, born between 1946 and 1964. Though most are empty nesters, many in this age group still own large family homes. Moreover, many have substantial equity and could afford to sell and move to more accommodating housing. That would free up properties for younger generations now facing tight-inventory markets. But they’re stumped about how to proceed.

“For many seniors, downsizing means letting go of 80% of their belongings,” Novak says.

More entrepreneurs are entering the business of “senior move management.” One major organization in the field, the National Association of Senior & Specialty Move Managers (nasmm.org), has affiliates throughout the country.

The task of clearing through years of accumulations can seem overwhelming to seniors. But move managers can hasten the laborious process by helping clients cull through and dispose of their possessions. Move managers also assist with logistics for the actual move.

“When you’re going to a smaller home, you must decide which things have the most meaning for you,” says Beverly Coggins, the author of “Three Steps to Downsizing to a Smaller Residence.”

A professional organizer since 1995, she says she’s learned it’s best for those downsizing to break the work into chunks rather than attempt marathon sessions.

“Downsizing means making decision after decision after decision. People who try to do this full-time quickly get physically and emotionally exhausted,” Coggins says.

To avoid excessive fatigue, she encourages downsizers to focus their work on the times of day they have peak energy. Also, she recommends they spend no more than four or five hours on these tasks at any given session.

Here are a few pointers for those facing a senior move:

-- Clear out excess furniture early in the process.

For most people, one major step toward downsizing involves dispensing with large pieces of furniture. Beyond family heirlooms and precious antiques, many find this process relatively easy because they don’t have sentimental attachments to most furniture.

Sid Davis, a longtime real estate broker and author of “A Survival Guide to Selling a Home,” suggests one way to clear space and furniture quickly is to put it up for sale. He says many of his home selling clients find they can quite quickly sell superfluous items such as sofas, recliners and dining sets through the websites of local newspapers. However, you’ll likely want to sell antiques through a reputable dealer.

“There’s always a good market for furniture. And moving out all those extra pieces makes your house more saleable because your rooms look larger,” Davis says.

He says downsizers often make enough money selling oversized furniture to buy new, more appropriately sized pieces for their smaller home.

-- Try to avoid renting a storage unit.

Many downsizers succumb to the temptation to place their belongings in a storage unit before they move. But Coggins strongly advises against this course if you can avoid it.

“Storage units are expensive. And for most people, they’re just an excuse to postpone making decisions on stuff they need to eliminate,” she says.

When working with downsizers, Coggins encourages them to free themselves of many items, including clothing that no longer fits, especially if they haven’t worn such apparel for a year or longer. The same applies to numerous household items.

She says many people feel especially anxious about letting go of things given to them as gifts from relatives or close friends. But she says such feelings are needless.

“It doesn’t mean you love the person any less because you can’t keep everything they give you,” she says.

To be sure, you’ll not want to cast off items with unusual meaning to you, like family pictures and love letters. But unfortunately, you may not be able to take everything you value to your new, smaller place. In such cases, Coggins suggests you take photos of the treasured items that can be framed and hung up in your new domain.

-- Seek out a charity with pickup services.

Many downsizers find it easier to let go of extra belongings if they know they’ll be put to good use. That’s why Coggins and other professional organizers often advocate contacting nonprofit organizations interested in collecting serviceable items.

Very often, charity groups will pick up items from your home, a convenient way to eliminate excess belongings. Also, with a pickup appointment you’ll have a definite deadline for your work, which can serve as a motivating factor.

The Salvation Army, for example, offers pickup services in many areas. To learn more or schedule a pickup, contact your local branch.

-- Attempt to stay focused on the positives in your future.

Coggins notes a central benefit of downsizing. With fewer home upkeep demands, you’ll have more time to focus on the people most important to you.

“When they downsize, many people realize more fully that it’s relationships, not stuff, that bring happiness,” she says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

A drug company marketing manager and his homemaker wife, both in their early 30s, must move from Boston to a town near Chicago to take a job transfer. Knowing that available homes are scarce in their area of choice, they were extremely apprehensive when starting their property chase last April.

“They lost out on six offers before finally succeeding on a nice brick colonial in the village of Arlington Heights, northwest of Chicago. This process was extremely nerve-racking, but they hung in there until they succeeded,” says Rich Harty, the real estate agent who represented the pair.

Like many purchasers in the current market, the Boston couple was terrified they’d fail to find a fairly priced property within their time frame, made all the more urgent because they’re expecting their first child in a month.

There are multiple reasons why buyers are apprehensive nowadays. The biggest factor involves the paucity of property in popular areas, which has led to renewed bidding wars. Another is that buyers in competitive situations often feel compelled to waive their right to a home inspection, which leads to the fear of hidden defects.

To compete, many purchasers are now bidding above the sellers’ asking price, which can lead to fears of what agents call the “appraisal gap.”

“This gap occurs when the appraiser for the buyers’ mortgage lender says the home is worth less than what was offered. Then the buyers usually must make up the difference with their own cash,” says Harty, a former president of the National Association of Exclusive Buyer Agents (naeba.org).

Unlike the Boston couple who didn’t let their homebuying fears stop them, many worried buyers are waiting on the sidelines until inventories loosen and mortgage rates come down. But Harty often dissuades his clients from a postponement.

“Assuming you expect to stay in the house long term --ideally 10 years or longer -- you’ll have time to build equity and refinance when the time is right,” he says.

Here are a few pointers for buyers:

-- Keep in mind your reasons for wanting to move.

Fear is a powerful factor that can stop people from realizing their homebuying plans, even when logic tells them to go forward, says Sid Davis, a real estate broker and author of “A Survival Guide for Buying a Home.”

Granted, there are legitimate reasons to delay homeownership. Perhaps you have evidence your employer will soon begin a round of layoffs or that your spouse’s job is vulnerable.

But absent such realistic concerns -- and assuming you’re sure that buying the right home is a good move for you from a financial and personal perspective -- there’s no point in ruminating over what could go wrong.

-- Line up mortgage approvals at the front end.

The time you spend documenting your financial fitness in order to buy a home is well spent if the lender gives you a preapproval letter, a vitally important tool as you negotiate for a property.

“Another advantage of preapproval is that it helps you define your comfort zone on how big a mortgage you can afford,” Davis says.

As always, most lenders still go to great lengths to ensure that the loans they originate are solid. That means borrowers must be well prepared to respond to their lender’s request for documents.

“The lender should tell you precisely what documents you’ll need for mortgage approval,” Davis says.

As proof of income, many lenders now insist on more than the customary pay stubs and W-2s. For example, they’ll likely ask for at least two years’ worth of tax returns. Also, they’ll probably want proof that the funds for your down payment have been in your savings or checking account for some time and weren’t borrowed from your grandmother just last week.

-- Exercise caution when selecting a home.

Having few choices is a negative for buyers --especially if it promotes perpetual indecision that delays the realization of their goal. Those who find themselves delaying indefinitely may wish to work with an agent to better formulate their screening criteria.

“Start with a short list of houses in the best neighborhood you can afford. Then gradually narrow that list to a still shorter one. In the process, you’ll learn more about what you’re looking for,” Davis says.

However, he suggests buyers be wary of any agent who tries to convince you to buy a place that doesn’t meet your core criteria, no matter how favorable the price.

“If an agent pressures you, stop working with that person and find another one,” Davis says.

-- Look for owners eager to sell soon.

Tom Early, an independent real estate broker, says that during all selling seasons there are some “test-the-market” sellers who have no urgent need to move. But there are also highly motivated homeowners who must move due to a job relocation, a financial setback or divorce.

“If a property is vacant, it’s likely the sellers are eager, particularly if they overshot the market on price in the first place and then had to take a deep discount to reignite buyer interest,” Early says.

Even if the home isn’t vacant, there are ways to assess the sellers’ level of motivation. Early says many owners, along with their listing agents, are remarkably frank.

“Some people are astoundingly candid about why they must move. ... You don’t need to pry, just ask why they’re moving, and they’ll open up,” Early says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)