There are three types of buyers in today’s market.
Today, I want to talk to buyers and sellers about the fact that no one’s buying any homes. Actually, homes are selling every single day. So if homes are selling every single day and the narrative is that it’s not a great time to buy, who is buying these homes?
I did a review of all the clients we’ve been serving, and there are three primary types of buyers we’ve been working with within this market. I want to share that with you so that you can learn a little bit more about who is transacting right now, even though rates might be higher and affordability might be lower.
1. Homeowners that need more space. There are families we’re working with right now that are bursting at the seams in their current homes. So whether rates are in the fours or the sevens, they are desperately looking for ways to upgrade. In the past, I’ve talked about it: math plus motivation. The motivation is very high, so they’re looking for ways to make the math work, and creative lenders are finding a way.
2. Buyers that are looking for cash flow or passive income. Right now, the economy is very volatile. You’re seeing news about banks closing right now. The savvy buyers want to be able to park their money into a hard asset, something like real estate, something that’s not going to go anywhere. So if they can put enough money down or buy this property in cash, they can create a safe haven for their money, create tax benefits over time, and create passive income.
3. The relocation buyer. People are relocating from all over the world to California, especially Southern California, and they want to buy. Many people are moving from different parts of the country or the world, saying, “I’ve owned my home for the last 20 years; I’m not going to rent. I want to buy. The rates may not be perfect, but I want to buy. So what’s the strategy?”
Hopefully, you found that interesting and enlightening. Remember, if you have any questions about this topic or real estate in general, please feel free to reach out to me by phone or email. I would love to serve as your resource for all of your real estate needs.