Are you thinking of buying or selling a home but you're not sure if this is the "right time"? Talk with a Realtor for expert advice on your local market.
Real Estate Cycles
Real Estate Cycles are no different than any other cycles that effect consumers. It is subject to the laws of supply and demand. A shortage of homes, also known as a sellers market, generally means that prices will rise. Likewise, a surplus of homes, also known as a buyers market, means that houses stay on the market longer creating downward pressure on prices.
One of the many important services your Realtor provides is a formal market analysis. Most people don't have the time, knowledge, or expertise to conduct a comprehensive market analysis. This is important information regardless of whether you are buying or selling.
As a seller you want to ensure that your property is priced correctly for the current market. As a buyer you want to ensure your offer is in line with what "like" properties are currently selling for.
Which Market Is Best?
Obviously, if you are a seller a sellers market is best. And as a buyer a buyers market is best. However, depending on why you are wanting to buy or sell can have a dramatic effect on this strategy.
As a seller, the upside to selling your home in a buyers market is you'll have a greater selection and lower prices on your new home. The key for a seller in a buyers market is to work with a Realtor that can accurately price the home based on the current market and property condition. A Realtor who can create the widest possible exposure (more than an add in the Sunday paper). And a Realtor that has a good track record communicating with clients and prospective buyers.
As a buyer, the upside to buying in a Sellers Market is you'll typically receive the maximum price in a short amount of time. Therefore, the transition from one home to another is quicker and typically more predictable.
First time home buyers suffer the most when wanting to buy in a sellers market. However, there are many good reasons to make a purchase. Buying an affordable home is historically one of the best investments you can make. Over the long term, real estate has proven to be a sound investment while at the same time offering you and your family shelter, ownership, and tax advantages.
In Wilson, the changing seasons and weather have little effect on buyer demand. The local climate does not change enough to deter those with a real estate need to continue looking and ultimately purchase in any season.
Spring and summer tend to be the busiest time in our local market. Curb appeal is better as lawns are green, gardens look nice, and daylight hours are longer. Buyers with school aged children often want to purchase in the spring and move during the summer months. However, local homes sell throughout the year so think of the season as only one factor in deciding whether to buy or sell.
The Wilson area is currently in a buyers market. Therefore, conditions are currently more favorable toward buyers than sellers.
However, this is not a bad time to sell. Sellers need to be realistic in approaching this market and need the guidance and advice of a seasoned Realtor. The upside to listing your house this fall is that historically inventories (available houses) drop in the fall and winter months. Therefore, you will have less competition for available buyers. Also, many serious buyers will want to purchase before the end of the year to take advantage of the tax breaks in this current year.
Buyers are in a good position. Even with a reduced inventory this time of year available properties are plentiful. With lots of choices, lower pricing, and reasonable interest rates this market is made for you.
Thinking of Buying or Selling?
I serve Edgecombe, Nash, and Wilson counties in North Carolina. Please contact me if I can be of service.