Are we seeing a shift in the real estate market? After years of favoring sellers, buyers are finally gaining more power in the housing market, but will it last?
Hi, I am Terry Tucker. Let’s dive in and see what’s happening nationally in the real estate market this Spring season.
Right now, we’re seeing the highest level of “for sale” supply in six years, with inventory sitting at a 4.2 months absorption rate. This means it would take, given the current sales pace, roughly 4 months for all active homes to sell if no new listings were added in the meantime.
Historically, a balanced market where neither buyers nor sellers have a strong advantage has around 4 to 6 months of inventory. Since 4.2 months is on the lower end of that range it suggests that the market is shifting toward more favorable conditions for buyers, but not necessarily a full buyer’s market. So, if you are a buyer and want to take advantage of this slight shift, here are the four things you need to pay attention to:
First, be aware of the rising inventory in your area. As more homes hit the market, this will give you more opportunity to choose from.
Second, be aware of price growth. Home prices are stabilizing, rising at their slowest pace in years which means better affordability. Pay attention to pricing in your area.
Third, know your negotiation power. Buyers are securing bigger discounts and better terms. Make sure you have a good agent to negotiate favorable terms for you.
And finally, be aware of good old interest rates. We are still seeing elevated interest rates keeping some buyers and sellers sidelined. Make sure you are dialed in with a good lender to keep you informed when rates change, so you can lock in that good rate.
But here’s the catch, this window of opportunity may not last! As more buyers realize there are deals to be had, demand could pick up again, leading to more competition. If you are a buyer, you need to act now. This Spring could be your best chance to get a great deal! And if you’re a seller, you’ll need the right strategy to stand out in a more competitive market. Let’s talk about your options. Connect with me so we can strategize a plan for you to seize an opportunity in this shifting market.
