10 Things To Know About Buying & Selling In This Market
There’s no denying the housing market is undergoing a shift this season, and that may leave you with some questions about whether it’s wise to buy or sell. We want you to feel confident in that decision. So here’s what you need to know…
For the buyer...
After years of a seller’s market where it was difficult and sometimes impossible for buyers to find their dream home, the trend is shifting in the buyers’ favor.
Right now buyer demand is slowing, which is good news for them. It means not as many multiple offer situations and less competition.
After a couple of years where homes went off the market just days after being listed, they are now sitting on the market longer. Instead of selling in days or weeks, you see homes in some areas listed for more than a month. That means sellers are likely to lower their prices. Price reductions help buyers.
You don’t have to let the rising interest rates keep you from buying a home now if you’re ready. You can take steps to make it easier to get an affordable loan. Make sure you have excellent credit to get the best interest rates. Come up with a larger down payment to reduce the interest rate on your mortgage.
Fewer buyers are willing to waive real estate contingencies, such as not having a home inspection. Sellers also set up contingencies, such as having financing in place before putting in an offer. All these real estate contingencies limited the pool of buyers competing for the same property. With the loss of these contract contingencies, it has leveled the field for all buyers.
For the seller...
While buyers have regained some negotiation power as inventory has grown, sellers haven’t missed their window. Listings could still stand out since inventory is low, compared to previous years.
Buyer demand has NOT disappeared in the face of higher mortgage rates. It turns out that millennials, the largest generation, aren’t the renter generation after all. They’re a significant driving force in the housing market today. According to NAR, millennials currently make up the largest share of homebuyers. Your house may be exactly what they’re looking for.
If current market conditions have you worried about how you’ll afford your next move, consider this: Homeowners have gained significant equity over the past few years and that equity can make a big difference in whether you can afford to buy your next home.
According to CoreLogic, the average amount of equity per mortgage holder has climbed to almost $300,000, an all-time high. That means the equity you have in your house right now could cover some, if not all, of a down payment on the home of your dreams.
As you weigh your reasons to sell, don’t lose sight of why you’re thinking about moving in the first place. Maybe it’s time to buy a house that’s in a better location for you, has the space you and your loved ones have been craving, or simply gives you that sense of home.
The bottom line?
With shifts in demands and equity, current homeowners have an opportunity on their hands. Buyers can take advantage of the changes in the market if they are willing to adjust their expectations. Broadening location and style preferences may open up more options. Whether you could be a future home seller or buyer, connect with a trusted real estate advisor to gain the expert insights you need to make the best possible move today.