THE Seller’s Market

From real estate professionals to anyone that uses social media, most people have been informed on the current real estate market. With interest rates at near the lowest rates of all time still, the market is still a “seller’s market.” Interest rates have ticked up in the past few weeks to months, however, they are still at some of the lowest levels ever. Mortgage rates have now creeped back up to 3%, maybe a little higher or lower depending on the day. With interest rates hovering around 3%, serious buyers are still trying to jump on any opportunity. However, in the seller’s market we have seen in the past 18 months, seller’s still hold all the cards.

Buying In Seller’s Markets

Serious buyers are out there – and looking for deals still. With such high demand due to rates, supply has fallen to some of the lowest levels we have ever seen. While the housing inventory looks to remain at historically-low levels, this doesn’t mean real estate is unaffordable. Many first-time home buyers believe they have been priced out of the market, this is usually incorrect. In some situations, they might be priced out, but that is hardly the case. Home prices have became a lot less affordable, but they are not unaffordable with the right amount of patience – and help from your real estate professional.

Market Seasonality And Influences

With a seasonally slower time of the year coming in the real estate market, this could be a great time to buy. Serious buyers are still out there and more motivated than ever to find their homes. With the seller’s market staying in place for the foreseeable future, buyer’s need to know what they want and prioritize what they need versus want. The leading driver in a lot of buyer’s motivation now is FOMO (the fear of missing out). A lot of buyer’s believe that in this market they will never find a home. Buyer’s also believe that they will have to go significantly over list price to get their homes. However, with enough patience, this does not have to be the case.

According to the National Association of Realtors Chief Economist Lawrence Yun, “Housing demand remains strong as buyers likely want to secure a home before mortgage rates increase even further next year.” With interest rates rising daily, and rate hikes on the horizon, this is still a great time to own a home. Just a few years ago, 3% interest rates were unheard of. Nowadays, there is thousands of home owner’s with mortgage rates well below 3%. Buyers might not have the upper hand compared to sellers, but buyers still have the opportunity of a lifetime. This is still a wonderful time to buy a home. Remember, owning your own home is one of the best ways to increase your net worth overtime.

Seller’s Market Advantages

Sellers do have the upper hand in real estate negotiations right now. With so many eager buyers competing over the same homes because of low inventory, sellers have the advantage. Sellers listing their homes this fall have all the power in negotiations because one buyer’s contingency is another buyer’s opportunity. Buyers want a few things when buying their house, other than just more space for work at home. A few things buyers want is: have the winning bid, buy before rates rise, and buy before higher prices continue. Because buyer’s want these things, sellers will hold the upper hand until something changes.

Seller’s Market Wrap Up

With home buyers more motivated than ever, the seller’s market is not going anywhere. While it might seem like a bad time to buy because of home prices, many analysts still believe buying before rates increase is economical. Buying a home at the end of the year can still be a great investment in your long-term wealth. Home prices only seem to be going up in the near-to-long-term, which only benefits buyers more.