By Matthew TrudelThe current real estate market is still strong, and inventory is still low. While interest rates still seem to be fluctuating up and down around the 5 percent to 5.5 percent range, buyers are overall not discouraged at this point.
Several buyers may be disappointed that they missed the 3 percent interest rates, but 5 percent is still a good rate and often buying is a much better option than renting. Rentals are at an all-time high in price and all time low in availability. What does this mean for current buyers and sellers and how might it affect those thinking of buying or selling in the next six months?
It is very common for buyers to waive inspections hoping to make their offer more enticing to the seller. These are very different times for both buyers and sellers. Buyers are taking more risks in trying to outbid other competitive offers.
Sellers are really in the driver’s seat on most occasions. It is still very much a seller’s market, and I don’t see that changing anytime soon.
Buyers who are actively trying to purchase a home must be on top of their game and they had better be working with an experienced real estate broker. The broker had better be on top of their game as well. As a buyer’s agent the broker should have a very clear idea of what their buyer is looking for in a home.
They should also know immediately when a home hits the market that fits their client’s needs. On top of all that, they should also know about homes that are about to hit the market that might fit their client’s needs as well. All of this can help give a buyer a clear edge in getting their offer in first and in front of the seller before other competing buyers have a chance to get their offers in.
If you are thinking about selling in the near future, there are a few things you might want to consider. Interest rates are probably going to continue creeping up and certainly are not going down. How does this affect someone who is selling a house you might be wondering? Higher interest rates limit a majority of buyer’s purchasing power which directly correlates to housing prices and what buyers are willing to potentially pay.
It also means fewer buyers that will be able to purchase your home and that means the competition between buyers might not be as competitive as it currently is today. If it were me thinking of selling or giving someone else advice, it would be to get the house on the market the sooner the better while things are still going well.
Thinking of purchasing a home but pondering the idea of waiting until next spring to pull the trigger? I wish I had a crystal ball to tell you what the market will be doing and where interest rates might be at in six months. It is always a guessing game when trying to predict what might happen in the future. I feel confident that interests will be a little higher than they are now. I also don’t see housing prices dropping a lot over the next six months.
I do see the rental market continuing to rise. All that being said, I would suggest at the very least you
find an experienced realtor to work with and talk about planning for your home purchase. There is a lot you can do now so you are prepared to move forward when you are ready, and the right home comes on the market.
Getting your finances in order and getting prequalified are just a few of the things to get done ahead of time. Purchasing a home in the winter offers a different set of challenges which I have written about before. Most important is finding the right Realtor and getting yourself prepared ahead of time. <
This article was written by Matthew Trudel, Owner of Five Star Realty, Windham, 207-939-6971.