Balance in the Market
Published on 11/19/18 by Michael Moore
*Update! Well after I wrote the article below, this article by RIS media came out, confirming what I said.
Monday, December 3, 2018 -- If the expectations about housing can be summed up on one word, it's this: balanced. (Suzanne De Vita)
Many are wondering where the market really is right now. Is it a seller's market or buyer's market? To those questions I say, it is actually healthy and well balanced.
There are a few months of inventory on the market, but these are the properties that are not the choicest of properties for which many are looking. Then, there are properties that are getting offers in the first five days on market. On one hand, not all inventory is flying off the shelf at over asking price, just because it got listed. To me this can signify an unhealthy imbalance, unrealistically favoring sellers. On the other hand, when choice properties are listed, they move sooner than later. To me, this is an indication that there are still plenty of hungry buyers out there, but they are being more discriminating, which is healthy, and helps maintain the balance in the market.
Many buyers are looking more at the choice properties. By choice I mean just the right mix of location, fit-and-finish, and price. The home is tastefully updated, fresh, modern, with an attractive floor plan. The buyer does not have to do anything but move in. They are willing to pay a little more for a property like this, even in a multiple offer situation. This is good for sellers.
There are also many buyers who see opportunity in properties that need some work. With the right negotiations they can get a property for what they consider a good deal. Then they dial it in and reap good equity. This is good for buyers.
Both of these scenarios are happening in our current market. We are still experiencing historically low interest rates as well. The rates that we used to have around 3% are gone, but that time served its purpose; to get the housing sector back on track. Things are much better since 2007. There is now no reason for rates to stay so low. It is unsustainable after all. Again, rates are still nice and low, just more balanced. This is a reflection of a healthy market that favors both sellers and buyers.
So, do not worry, whether you are a seller or buyer. You are not losing out! Especially with an experienced, insightful agent who will help you maximize the potential of what you are looking to accomplish in this healthy, balanced market.