Is the current real estate market undergoing a major shift?
Has the housing market shifted? Is it still a good time to buy? Many people have reached out to ask us these questions, so today I’ll address them both and discuss what’s going on in the current marketplace.
Now that spring has arrived, we’re seeing quite a few more houses coming onto the market. However, it’s still a strong seller’s market; demand is high, and inventory is limited. To give you perspective, almost 1,000 homes hit the market on the Thursday after Easter, which is twice the number that came on just two weeks prior.
Even though inventory has increased, sellers are still seeing a lot of activity, though perhaps less than they have been. Instead of getting 20 to 30 offers on their houses in the first week, they might now only receive one or two. If you’re a seller, you should manage your expectations. Even if your home doesn’t sell immediately, you can still generate a bidding war.
“Qualified borrowers are getting rates of 5.5%, which is quite the change from last year.”
If you’re buying, now may be a good time to take advantage of these conditions. Some sellers assume that their house will sell over the first weekend, but that doesn’t always happen. When it doesn’t, the seller might be open to taking an offer at or slightly under the asking price. You should also keep an eye out for homes that were previously taken off the market but have now returned—these could be good opportunities as well.
Even though interest rates are on the rise, they’re still historically low; these increases have scared some buyers away from the market and priced others out. Qualified borrowers are currently getting 5.5%, which is quite a change from the 2.5% rates we saw a year ago. Buying a home now at a great price and locking in your rate will be a smart move in the long run since interest rates are scheduled to continue rising this year.
In the end, are we going through a major market shift? No, but we are seeing some slight changes that are creating some great opportunities.
If you have any questions about buying or selling a home or need assistance with your next transaction, don’t hesitate to give us a call or send us an email. We’d love to help you.
