The real estate market largely depends on supply and demand. However, there are other factors to consider such as mortgage rates, home values, and the ability of buyers to get financed. While the market remains strong in the early part of 2018, buyers need to be prepared for rising interest rates, and sellers need to be ready to face competition for qualified homebuyers.
Is It Time to Buy?
Not a lot of people feel comfortable buying a house in this market. Part of this is generational: the millennial market would rather rent than buy. Part of it is financial: it’s harder to get financed for a home loan. Interest rates are still low, but rising, and sales prices are also beginning to climb in most markets. If you have been planning and saving for a home purchase, it’s probably a good idea to do it sooner rather than later. Conditions will only continue to get more complicated. If you’re pre-approved for a loan and you know what you want, you’ll find a lot of good properties on the market.
Is it Time to Sell?
On the plus side, sellers are finally enjoying an increase in the value of their homes. They have more equity, and feel more comfortable putting their properties on the market. Many homeowners who were renting out their properties are finally ready to sell them so they can make an acceptable profit. However, sellers are facing competition for well-qualified buyers. If you’re putting your home on the sales market now, make sure you don’t overprice it. You’ll lose potential buyers and face a longer time on the market. Pricing the property competitively is the most important thing you can do to ensure a quick sale in this market.
Keeping Up with Changes
The real estate market is constantly changing, and the local market will especially dictate when it’s the right time to buy or sell a home. In states like California, where prices are much higher than the national average, you need to really pay attention in order to buy and sell at the right moments.
The ideal time to buy and sell also depends on whether you’re approaching the decision as an investor or an owner-occupant. You’ll have different priorities and goals.
Working with an experienced real estate professional will help you stay up to date on how the market is performing, and what that means for your property goals.