Why is the market so hot?

A lot of factors go into buying and selling a home, so with the current market moving the way it is, people correlate its’ speed to its’ success - or rather how ‘hot’ it is!

WHEN IS THE BEST TIME TO BUY A HOUSE? The #1 answer to that question is ‘whenever the timing is right for you!’ The market is fast right now, so it is important to gain experiential knowledge to make a confident decision. People tend to believe knowledge relates to TIME, whereas in Real Estate, we look at repetition over calendar time. If you were to look at 5 homes in a week versus 5 homes in a month, what would change? NOTHING! It is our goal to make sure you are confident when you place your offer. Homes are selling quicker than normal (17 days this year v 27 days last year!) so buyers have to be prepared to make an offer quicker than normal. We will make sure that offer is based on experiential knowledge. Learn more about how waiting to buy can cost you thousands of dollars right now.

WILL I GET A GOOD PRICE FOR MY HOME RIGHT NOW? Right now, homes are selling at very competitive prices. These prices are a prime example of supply and demand. Inventory, or the number of homes on the market, is low. Last April, we had 4 months worth of inventory on the market, this April, we only had 2.4 months of inventory on the market. There is a larger pool of buyers in the market than normal due to all the pent-up demand coming out of the pandemic. With home inventory low and demand for homes high, prices are very competitive.

Real Estate is THE safest investment you can make in a time of inflation because it is a fixed asset AND fixed payment.

WILL PRICES EVENTUALLY DROP? Inflation has risen more than it has in 30 years. Price appreciation might slow or see a slight decline, but persistent price decline is not likely. Pent-up demand to move ensures that the second prices start to decline, buyers that haven’t been able to get into a home will jump at the lower prices and drive demand right back up. Regardless of if prices (or interest rates) continue to rise or fall, Real Estate is THE safest investment you can make in time of inflation because it is a fixed asset and a fixed payment. Interest rates could soar and you will continue to make the same monthly payment.

WHY ARE THERE SO MANY BUYERS? Interest rates are LOW. Lower than they’ve been in YEARS. With a low interest rate, buyers can afford a nicer home while keeping the same monthly payment. Even with home prices elevating, buyers still have more buying power than they’ve ever had to go after their dream home! Couple this with inflation. Rent is expected to increase 7-9% next year alone - and in markets around the country owning a home is already a lot cheaper than renting.

In this market, buyers are often putting in multiple offers before they get an accepted offer. We’ve got a solution. We’ve helped over a dozen families in the past 60 days buy or sell off-market properties. By buying/selling off-market, you increase your chances of getting all the terms you would hope for which saves you time, decreases your stress, & helps you keep as much money in your pocket as possible.

If you hear of a friend or family member who wants to move but isn’t sure they want to sign up for the frenzy in this market, introduce or connect us and we would be glad to help.

Sources: National Association of REALTORS, Brian Buffini Network