I've had many people ask me what I think of our current housing market. Many are concerned whether now is the right time to Buy and/or Sell. When it comes to selling your home, my recommendation is to wait if you can comfortably afford to do so. The reason is that competition among Sellers is fierce and those Sellers willing to price their home the most competitively are the ones that are selling. Trying to sell a home for TOP dollar is an exercise in extreme frustration and will likely lead to disappointment. Wait until the inventory of homes currently for sale has been significantly reduced.
When it comes however to Buyers, you couldn't ask for better timing. In my 13 years of real estate I have never seen such a tremendous variety of homes to choose from. Secondly, interest rates are at the lowest we're likely to see for the next few or more years. Lower interest rates means you are able to buy more home for the money! Thirdly, Sellers are in a negotiating mood. It is rare to see a home sell for full price without some kind of concession in today's market. The minute our housing market turns the corner, all bets will be off when it comes to a Sellers willingness to negotiate a lower price or bonus amenities.
Yes, I agree it is a nervous time in the real estate industry, but we must also look at the broader picture. Home prices at different times fell back, such as in the Great Depression, the 70's and the 80's to name just a few of the downward cycles. Did those Buyers who took the plunge and bought in those markets end up with homes worth less today or even over a five or 10 year period? No! Housing is a basic necessity of life and will ALWAYS be so. The last time I checked our population is growing...not shrinking and that means more housing will be needed.
Another thing to look at is because of the fear of buying right now, more people are renting which in turn, has raised rental rates. As rent rates climb higher and higher and home prices continue to fall, there is going to be a trade-off at some point where renters realize that it costs the same in monthly payments to buy their own home plus reap the tax breaks for home ownership, not the mention the pride and freedom that comes with owning your own piece of real estate.
These are just a few of the things to consider when looking at our current real estate market. Don't allow irrational fear to be your guide in deciding what is best for you when it comes to your real estate needs.
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