Hot, Normal or Cold Markets: When Should I Buy?

By
Real Estate Broker/Owner with 1 Month Realty 49855-090

Hot, Normal or Cold Markets:

When Should I Buy?

 

Real Estate

Picture credit to ListReports

Many people are sitting on the fence trying to decide if now’s the time to buy a house. Some are renters who have a strong desire to become homeowners but are unsure if buying right now makes sense. Others may be homeowners who are realizing that their current home no longer fits their changing needs.

To determine if you should buy now or wait another year, ask three simple questions:

  1. Do I think home values will be higher a year from now?
  2. Do I think mortgage rates will be higher a year from now?
  3. Do I think this is a Hot, Cold or Normal market?

Hot Market

This is an extremely competitive market and is advantageous to the seller. Sometimes, homes will sell as soon as they are listed or even before homes are listed. Typically, during a hot market, multiple offers will be made on each home and more often than not, homes will sell for more than the asking price. It is even more crucial to be prepared and to be ready as a buyer when the market is hot. It can be easy to get caught up in the bid for a home, but if you are prepared (pre-approved, solid in price range, realistic about your needs), it is easier to remain focused on your housing needs and price range.

 

Normal Market

In a normal market, there is a fairly large number of homes available and an average number of buyers. This market does not necessarily favor the buyer or the seller. A seller may not have as many offers on their home, but he or she may not be desperate to sell either. Again, it is the buyer’s responsibility to be prepared. During a normal market, the chances to negotiate are higher than in a hot market. As a buyer, you can expect to make offers at lower than the asking price and negotiate a price at least somewhat less than what the sellers are asking.

 

Cold Market

In a cold market, houses may be listed for more than a year and the prices of houses listed may drop considerably. This market is advantageous to the buyer. As a buyer, you have the time to make an offer that works to your best interest. It is not uncommon to low-ball and to find that sellers are accommodating to meet your needs. Keep in mind that even though this market is a great time for buyers, you do not want to lose your dream home by being unrealistic. Your goal is to get your dream home at the best possible price.

 

We are experiencing a Hot Market in SE Wisconsin! Buyer's are finding themselves in competitive bidding situations and Seller's are on the winning edge of getting the Best Prices Now!  So, whether you are a buyer or seller, I am here to assist you with all your real estate needs.  Call me today so we can discuss what your next Best Steps will be!

 

Comments (6)

Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

Thanks for sharing Diana!

Many people are sitting on the fence trying to decide if now’s the time to buy a house. Some are renters who have a strong desire to become homeowners but are unsure if buying right now makes sense. Others may be homeowners who are realizing that their current home no longer fits their changing needs.

May 08, 2021 10:46 AM
Diana Dahlberg

Anyone thinking of buying or selling needs to be aware of the real estate market they are entering.  Sellers who are sitting on the fence in a Hot Sellers Market like today may find themselves regretting their decision to hold on to their current home. However, there are so many reasons one of which is the most common -- fear of not being able to find suitable housing once their house is under contract. No one wants to be left "homeless". Thanks for your comments!

May 10, 2021 08:09 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Diana and thanks for the great blog and explaining the markets that we have to deal with.

 

May 08, 2021 11:15 AM
Diana Dahlberg

You are very welcome Will Hamm ... it's been a while. Hoping this information will be helpful to anyone who is unsure of where we are at.

May 10, 2021 08:10 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Thanks for sharing your tips on the market conditions, Diana.  I think you did a wonderful Job. A

May 08, 2021 01:17 PM
Diana Dahlberg

Thank you Ron and Alexandra Seigel ... it's been a while since I did a blog. Appreciate your encouragement!

May 10, 2021 08:11 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Diana - nice to "see" you here with these easy-to-understand tips for those looking to make a move in Southeast Wisconsin.  

May 09, 2021 03:56 AM
Diana Dahlberg

Thanks Michael.  I know it's been ages since I blogged ... but I so appreciate your kind words.  SE Wisconsin is crazy right now!  Seems everyone I talk with is experiencing the same thing.  This too shall pass?

May 10, 2021 08:12 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Diana, so glad to see you again, and many buyers around Denver are getting frustrating writing and losing out.

May 09, 2021 06:41 AM
Diana Dahlberg

Joan Cox I can so relate.  I was just telling someone the other day that I have more "dead files" than "closed files" for 2021.  My heart goes out to the many buyers who have given their "best" but even that was not enough the cross the BIG divide!  I have written 6+ offers with some of my clients before we won!  Frustrating -- YES!  But I keep saying, "every offer I write, I just get better at it!"  Bring it on!  LOL

May 10, 2021 08:15 AM
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

So many fence sitters are missing out on a hot market and many never can pull the trigger.

May 26, 2021 08:43 AM