Real estate professionals understand that consumers tend to ignore housing statistics and the market until they decide it’s time to purchase or sell their own home. Things that impact the market is a mystery to many people.
What determines a buyers' or sellers' market? What factors influence home prices?
The answers to these questions are multi-faceted, but it's important to pay attention to them if you hope to keep more of your money when it's time to buy or sell your home.
Even in what seems to be the worst of real estate markets, there is always glimmer of light for some.
What’s Happening with Interest Rates?
It’s no secret that getting a lower interest rate for a mortgage means lower payments. Obviously, low interest rates make home-buying an attractive venture—and, even whispers of a rate hike can scare people out into the market.
If you're in the market for a home and interest rates decrease or even remain attractively low, it's definitely time to get excited about the housing market.
The Current Economy
The current economy always plays a key role in affecting the real estate market. When the economy is sluggish, the real estate market seems to slow down. People When the economy is good, the housing market does better in most areas
When job growth is strong, consumer confidence rises and people are more apt to spend money on high-ticket items, such as cars, appliances, vacations and real estate.
It’s an Exciting Markets for Sellers
There's a saying in the real estate industry for homeowners - the best time to sell a home - is when you need to sell your home. Realtors understand that isn't very helpful. If your are one of the fortunate who has no compelling reason to sell (such as a job offer in a different town or divorce), you have the luxury of choosing when to put your house on the market.
When you’re selling, you should get excited if real estate professionals say the words “sellers' market.” This is a period in which there are few homes for sale but buyer demand is high. During sellers' markets prices typically increase and homes may sell at or above list price.
One mistake we see in sellers' markets is the homeowner who feels that the market itself will bring top dollar for the home, regardless of the home’s condition. Be careful, and make sure your home is in good condition. Good looking homes sell the quickest and for the most amount of money. Staged homes are even better! Even if market conditions favor sellers, if your home isn't in move-in condition, it may be overlooked by many buyers.
Are You Buying a Home This Year?
A buyers' market is when there is a large amount of homes for sale and fewer buyers in the market— this is a great time to purchase a home. Unlike a sellers' market, prices don’t’ increase as much and you won't be competing against a slew of other buyers. This type of market is more relaxed, and home buyers can take their time deciding on that perfect home.
In a sellers' market, you must be sure to have all your “ducks in a row” before making an offer on a home. You should know exactly how much you can spend and obtain a pre-approval letter from your lender. A sellers' market moves quickly, and there isn’t as much negotiating power on the buyer’s behalf.