The real estate market is positioned for an active season and buyers and sellers need some guidance. What does all-time affordability mean in a low-inventory market and how does a professional agent communicate that to both buyers and sellers?
With the resurgence in our market comes a rapid decline in the inventory of available properties. Multiple offers are now as common as foreclosures and short sales used to be. So what does that mean for buyers and sellers? Should sellers line up to sell to take advantage of this? Should buyers wait until the crowds die down? That entirely depends on the motivation of both buyer and seller and their particular reason for buying or selling.
Typically in a low inventory market a seller will sell their home for more and a buyer will pay more. Does this mean that a buyer shouldn’t be buying right now? ABSOLUTLEY NOT! With current interest rates being as low as they are, it’s still a fantastic time to buy real estate. And while a buyer might cringe at the price they have to pay if competing in a multiple offer situation, they could cringe more if they waited to buy and the interest rates went up, or if they lost the property they really wanted to a buyer with a higher offer.
In our current market both buyers and sellers have to look very closely at the pros and cons of being in the market now. There are many variables that can lead to speculating and assumptions and nobody knows for sure what interest rates and available inventories are going to do tomorrow, so buyers and sellers need to look at their particular, individual situations very carefully and seek the guidance of a professional, experienced Realtor that can do the research on market trend and conditions in their value range.
Article material from Denise Lones CSP, MIRM, CDEI an expert in real estate marketing and training for over twenty years.