In the housing market, everything always takes longer than you think. Here’s what I mean.
Before I get into today’s housing market update, I want to tell you a quick story:
I’ve always struggled with my weight. I used to ask a friend of mine what he was doing to stay in shape. He responded by saying, “Don’t overcomplicate it—eat less and workout more.”
Our tendency to overcomplicate things can manifest everywhere, even these market updates, so today I’ll keep it as simple as possible:
For homebuyers, interest rates are historically low. Buyers with 15-year mortgages are locking in rates in the 2% range, and those with 30-year mortgages are locking in rates in the low to high 3% range, depending on their financial situations. That means now is a great time to borrow money and to buy a home.
The downside for buyers in the market is that inventory is also historically low, meaning there just aren’t as many homes available on the market as there are buyers searching for them. This makes it a bit more challenging to find a great home now than it would’ve been in recent years. That’s just the way the market is; I tell all my buying clients that all we can do is the best we can in the current conditions.
“Buyers aren’t stupid; they won’t overpay for a property if they don’t see the value in it.”
Now, if you’re a seller, the market is on fire. Since there’s such little supply, demand is super high. If your home shows well, brings in an emotional connection that buyers are looking for, and is priced aggressively, it will fly off the market with multiple offers.
We still see homes sitting on the market, however. Buyers aren’t stupid; they have all the information they need at their fingertips, so they won’t overpay for a property if they don’t see the value in it.
Here’s a tip that will benefit all buyers and sellers: everything always takes longer than you think.
This highlights the importance of setting a goal. No matter if you’re a buyer or seller, you need to create a plan and include a 30% buffer in it. For example, if you think it’ll take two months to accomplish your goal, shoot for two, but plan for three. This way, your expectations will be met, and you’ll have extra time to account for the curveballs life sometimes throws our way.
If you have any questions about the housing market, don’t hesitate to reach out to me. I’m always happy to connect with you.