Pressure. When we used baking soda and vinegar lately for a backyard science experiment with our kids, we all expected a big explosion or at least some action. However, the home-made walls barely trickled with mixture and bubbles. Sometimes the pressure is not as big as we think. Similar to the real estate market, there is pressure in the local markets right now but how will it be manifested? Will all the people waiting for the right moment to sell, put the sign in the yard? Will buyers who have been waiting for the right time, jump in and buy? Or will buyers and sellers continue as before, slowly continuing the trend? The current low inventory of homes to buy is good news for home sellers as they can get a great price for the home they are looking to sell especially in certain price ranges. I’ve not only had many conversations with buyers frustrated with the lack of options, but the stats below also continue to tell the same story of very low months of inventory. In addition, for buyers the mortgage interest rates are getting even lower! Currently there are some rates at 3.375% and others as low as 2.875%! These are historic lows for home buyers. This rate is fantastic and costs buyers hundreds of dollars per month. See below for more stats and ideas to help guide your decisions.
Based on the above stats, please review the following ideas to help guide your decisions:
In this slower market look for the homes that have been sitting on the market for awhile. There may be a good deal for you to buy. IF you can find an under market value property, it is always a great time to buy. Everyone wants a deal, but the only way to find an outstanding deal is to know someone. This market has become one based on relationships. Who do you know that may be selling? If you are going to buy a single family home or condo on market to invest, you MUST know the area very well to determine if it is in a pocket that is highly desirable. Another aspect of investing to be aware of are the easing of restrictions on ADUs (Accessory Dwelling Units). These could be a great opportunity, but there are risks associated especially when you consider the zoning of the property. If you are aware of the risks up front and are prepared for them you can get a great deal. Let me know if you would like to know more about them.
Taking advantage of these lower rates could save you a lot of money are allow you to increase your spending budget. Also, continue to look for the homes that have been sitting on the market for awhile. There may be a good deal for you to buy. What is the opportunity cost for waiting to buy for the perfect market? Opportunity. The more time that goes by is more time that you aren’t paying down a mortgage. Also, that home that you could have bought 6 months ago could have already gone up in value.
There is very low inventory right now, which creates the important pressure on buyers to get a top price for selling your home. Also, home values are up, inventory is down and buyers are motivated. Stats continue to indicate we are still in a good time to sell. An additional point to consider, if you are thinking about remodeling before you sell here is some important advice: you may not get your money back BUT you will sell faster. Right now buyers want a “turn key” home. Is the investment worth it? Lets talk.
If you liked these stats please reach out and let me know about it! If you have any questions about the Real Estate market or the process of buying or selling a home please contact me. Contact me today if you are ready to buy or sell a home.