With mortgage rates high and an increasing uncertainty being felt throughout the market, many prospective home sellers and hopeful buyers are feeling nervous when it comes to their future home goals. We believe that knowledge is power so we’ve found answers to some of the burning questions about today’s real estate market that many of you are asking these days.
How is the low inventory of homes on the market impacting buyers?
Now that the market has shifted back to a seller’s market in many areas, the low inventory is giving buyers less negotiating power for concessions, price adjustments, and home repairs. The luxury market has found itself hot again and the sellers have most of the leverage — especially if the property is in turn-key condition and in a desirable location.
Is now a good time to buy? What kind of market should buyers expect?
If you’re deciding between renting and buying, it’s always a good idea to buy if you can afford it. A home is a tangible asset. You have two choices: rent and acquire zero equity, or buy a home and build long-term equity and value. Yes, we all know interest rates are high but many analysts expect rates to go down later this year, and you can always refinance down the road.
Is now a good time to sell? What are you advising homeowners who want/need to move this summer?
It’s typically a great time to sell when you are in a seller’s market, with inventory so low and demand still very high.
Are you seeing a difference in how long homes are taking to sell at different price ranges or in different parts of town?
Turn-key homes in good condition are typically moving in less than 30 days. If the home needs work, it’s taking closer to 90 days or so for them to sell — at all price points. Borrowing money in a high-interest rate environment is leaving little money for renovations, so the nicer the home, the easier to sell.
It’s impossible to know anything for certain, but experts do expect interest rates will be in the low 6’s or high 5’s by Q3.
If you have any further questions or want someone to talk over your buying options, give us a call: 810-275-1714
