When you ask how the market is doing, it’s important to focus on which emotions are driving the market forward.
The market is currently pretty strong for home buyers and sellers alike. Prices are slowly moving up but so are interest rates, so you want to consider all of these factors before buying or selling.
The two emotions we see right now are fear and desperation. Fear of interest rates rising, prices rising, and fear that you might not be able to afford a home in the next six months are driving buyer activity. Desperation comes from low inventory—buyers are worried about finding the perfect home before rates go up. We’re seeing people overpay for properties because of fear and people settling for properties that aren’t a good fit because of desperation.
Who you hire as your agent matters now more than ever before. As an agent, the advice I give a seller will be very different than the advice I give a buyer. I’m trying to help maximize the goals of whoever I’m working with. I want to help sellers get top dollar and I want to help buyers find the best house for the best price.
So what does this all mean?
As a buyer, it’s a great time to buy because interest rates are still historically low. If you buy a home in the next three months, you’ll probably secure a rate in the low 4% range. Inventory is slowly growing and we’ll start to see it rise around March and rise even more significantly in April. You want to find that balance of waiting long enough to have more options, but not waiting so long that rates rise and prices rise to a point where you can’t afford the home that you really want. Don’t forget to get pre-approved for a mortgage, either. Knowing your price point can override your emotions.
As for sellers, we haven’t seen this good of a time to list your house in a long time. Inventory is so low that buyers have few options and the demand is very high. As a seller, you want to leverage a buyer’s emotions because that’s what will put money in your pocket.
I hope you found today’s topic valuable and informative. If you have any questions or you’re thinking about buying or selling a home, give me a call or send me an email soon. I’d love to hear from you!