By Stacy Matlock, Realtor® Top Producer
Paulsen Water Front Group
Coldwell Banker Cocoa Beach Realty
stacymatlock1@yahoo.com
Real Estate is poised for an active season and both buyers and sellers need guidance. What does all-time affordability mean in a low-inventory market? How do you communicate either side of the business?
The real estate market is alive and well! The multiple offers we are seeing on so many listings is proof of that. With resurgence in our market comes a rapid decline in inventory. Multiple offers are now as common as short sales used to be.
So what does this mean for buyers and sellers? Should sellers line up to sell and take advantage of this? Should buyers sit at home and wait until the crowds die down? This entirely depends on the motivation of both the buyer and seller and their particular reason for buying or selling.
Typically, in a low inventory market, this means a seller will sell their home for more AND a buyer will pay more. Does this mean a buyer shouldn't be buying right now? ABSOLUTELY NOT! With interest rates hovering around an all-time low, it is absolutely a fantastic time to buy real estate. And while most buyers might cringe at the price they may have to pay if competing in a multiple offer situation, they may possibly cringe more if they wait to buy and interest rates went up.
In today’s market, both buyers and sellers have to look closely at the pros and cons of being in the market now. A seller might ask why they would want to list now if the inventory is so low. Doesn't this mean house prices would go up because of the lack of inventory? While this seems like a good assumption, there are many variables that make this kind of speculating just that … speculation. Nobody knows for sure what the interest rates are going to do tomorrow, so sellers and buyers need to look at their particular situations very carefully.
If a seller needs to sell but they want to hold off in the event inventory gets any lower, they may also be holding off long enough to see an increase in interest rates which could cause the buyer pool to diminish. The question becomes whether or not the seller wants to speculate or if they want to be in the market as it is today. A "sure thing" today may not get sellers a speculated increase tomorrow. Perhaps the stars will align tomorrow, but today's market, it is a sure thing. Sellers and buyers must look at an analysis of what it looks like to buy or sell today and what it could look like to buy or sell in the future – looking at how differing market conditions (such as changing interest rates and inventory) might affect the market for that property.
Buyers need to know we are still at an all-time high affordability rate and we have historically low interest rates. While they may be paying higher than they wanted, if they have to compete in a multiple offer situation, what they save with interest rates will quickly make up for that over time.
Sellers need to know while the market seems to be in their favor right now, it does not mean this is going to last forever … or things could improve even more. The decision to sell needs to be more than just speculation and playing the market.
Ultimately, both buyers and sellers are winning right now in what appears to be the perfect storm for both buyers and sellers. As an agent giving advice, present the facts about the market now and help paint a picture of a future with a number of scenarios so buyers and sellers can check their tolerance for risk and make a decision. Call me today if you are interested in Selling or Buying, a Brevard Native that knows the Real Estate Market!
No comments:
Post a Comment