I’ve never seen anything like the residential market we are in right now. And I know people who’ve been in the business 40 years or more who say the same thing.
We are barreling along at 90 mph on an unfamiliar road, and that can make it hard to understand what’s going on. The scenery is certainly interesting, but it goes by in a blur. Knowing what it all means can be a challenge.
That said, there are clues to the meanings if you look. I’ll stick my neck out and offer a few thoughts …
Are we in a bubble?
I think not. Prices will keep going up. I hope the rate of rise will taper off a bit as inventory begins to catch up with demand (new home starts are at their highest annual level in 15 years) but, barring some sort of global melt down, they aren’t going to collapse.
Is now a good time to buy?
Yes. Want a more expensive house? Wait a week and come back. If you want and/or need a house, now is always the right time to buy one. No one can predict the future and this is about more than investment. It’s about a place to live your life.
Is this a difficult time to buy?
Yes. It’s harder than it has been in a long time. Because inventory is so low, there’s a battle for almost every house that gets listed – as long as it’s sensibly priced. (See below about limits.) This battle is going on at all price levels – from starter homes to million-dollar+ listings. But patience and persistence will pay off. Brace yourself and jump on the roller coaster.
Think about buying new construction
New-builds are frequently listed before they are finished. In some cases you can avoid the bidding war stampede and associated brain damage by buying this way. You may have to wait a bit, but the process will be calmer.
Is this a good time to sell?
Duh!
Is there a limit to all this?
Yes. There is a limit. Overpriced houses do not sell. I’ve seen it time and again. Comps still matter. Appraisals still matter. And all those people coming here from California and New York work with realtors who look at the comps and think about appraisals.
Work with your realtor
No matter how weird it gets, your friendly, knowledgeable, indefatigable realtor will be there with encouragement and counsel.