When I first got into real estate, an older agent told me the best time to buy is always today. He meant today you know what the market is doing, but it may change over night. This is because of constant changes in market conditions. These changes can happen on a day to day basis. As you might already know by now interest rates can have a major effect on market conditions.

When they are up, fewer people qualify or are willing to buy a home.  This gives the buyers the upper had and is sometimes refereed to as a buyers market. These buyers are going to try to get the best house that fits what they want, because of competition from other sellers. You are going to have to make sure your house is at it’s best to stand out. Local builders often give out great incentives on their new homes because they are trying to sell their houses just like you are. To them it is a business and their business is to sell houses. People who are a FSBO (for sell buy owner) may find it even tougher without the help of an agent or Realtor. If your house is not properly marketed at the right price, good luck attracting serious buyers to your property.

When the rates begin to decline more people can afford to buy instead of rent. It’s like a gold rush with buyers and investors pouring in from everywhere.  The sellers tend to have the advantage as competition may dive up their asking price. You should always have your home in the best possible condition, but may still get multiple offers from desperate buyers.  Investors are also trying to buy homes to “flip” or use as investment properties. A FSBO might have some luck on their by there selves if the market is hot enough. They should remember though, that most serious buyers are always represented buy an agent. This will give them a negotiating advantage and you may have to pay a commission. The commission may be a small price to pay for a qualified buyer, so think about it before you turn down an offer because of this. A hot market can quickly turn cold in less than a week.

Remember market conditions are usually local.  Everyday on the news they keep talking about this real estate bubble, or the housing market crashing.  This is happening in only certain markets. In these markets appreciation has risen to unrealistic levels. The market will always correct itself at some point. In El Paso, Texas the market did not crash because prices didn’t rise to these unrealistic levels.