I get asked about the market all the time – more-or-less every day. “How’s real estate?” “What’s going on in the market?” There’s never a simple answer, but over the past eight months or so, the answers have been less simple than usual and “exactly” has left my vocabulary.
With the spike in interest rates last year, the market was thrown into a tizzy. No one knew what to do. Sellers didn’t know where to price their property or whether to hold off selling. Buyers were unsure of what to offer, or whether to offer at all. And – while I hate to admit it – realtors were sometimes as confused as anyone.
Well, things seem to be settling down a little, so a few – somewhat hedged – declarations and predictions. Be sure to tune in over the next few months to see if I was right.
The frenzied sellers’ market is over – for now
For sellers this means careful pricing is key. In our market, prices aren’t actually going down, but you can’t expect to simply pull a number out of the air and expect multiple buyers to compete with each other and bid above that. Buyers get a little breathing room to make a decision, but no one can drag their feet. It’s still a seller’s market and houses will sell promptly if they are reasonably priced.
Interest rates are likely stable
It’s very hard to make predictions about this – especially in light of the recent bank-failure turmoil – but rates aren’t going down to where they were a year ago any time soon. So, it’s time to suck it up and accept rates in the 6% range. And it helps to remember two things. One: 6% is, historically, mid-range, not all that high. Two: You can always refinance if the rates drop.
Inventory up slightly, buyers coming back
Available inventory is inching back upward from the lows of recent years, but mortgage applications are up significantly. With more buyers coming into the market, things may tighten up this spring. Which could lead to the market heating back up – not like a year ago, but warmer than it is right this minute. But, as with all forecasting, only time will tell …
Is this a good time to buy? Or sell?
Of course it is! I’ve said it before, and I’ll say it again: If you need or want to do a real estate deal, there is no time like the present – especially now that the market is more balanced that it has been for several years. Price it right, and it will sell. Buy now, enjoy the house, and refinance if rates go down. Or rejoice at your smarts and good fortune if they go up.