Wow! How times have changed. Or have they? I remember a few years ago, the holiday season was prime time for sellers to take advantage of market slowdown. The holiday season presented an ideal time to list when other sellers were waiting until after the holidays were over and done. Knowing that the competition would be low, they would have fewer homes to compete with.
The Difference Between Then and Now
These days inventory is perpetually low regardless of the season while competition is still high. Birmingham, Alabama inventory has remained steady with no significant increase. Buyers are still clamoring to buy a home and they rapidly converge onto any desirable property that hits the market.
Motivated Sellers
While in times past, there were also sellers that may have been hesitant to list their homes during the holiday season because they wanted to enjoy the holiday. Not so much today. If a seller is motivated, they are going to get that house listed while the market is starving for new inventory and buyers are sitting in the hot seat just waiting to jump in a split second when a desirable property hits the market.
Buyers Have to Get it While it is Hot.
There are listings that may go under contract at once. However, I am seeing that others are lingering a little bit longer. That may be a sign that buyers just cannot stomach the climb in interest rates. As a result, many homes are taking just a little longer to secure a new owner.
But when it comes to those undeniably hot properties, buyers are not slowing down. If it is love at first sight, buyers do not want to risk losing out on the home that gives them that warm and fuzzy feeling. When it's hot, it's hot. These buyers are still ready, willing and able to buy when a house speaks to them regardless of interest rate hikes. The disadvantage to them is that if they do not buy now, prices will go even higher, interest rates will continue to fluctuate weekly, and they will have to live with the inevitable remorse of a missed opportunity to buy a home that had their names written all over it..
It is true that we cannot predict when and how much interest rates will fluctuate, but we know that they will rise and fall. For buyers that purchased while interest rates were/are higher, they should keep a sharp eye open for significant drops so that they can refinance at a lower rate that makes sense and reduce their monthly mortgage payment while increasing available cash for other wants and needs.
What hasn't changed? Inventory is still low and demand is still high. Oh how much things change, yet remained the same.
Comments(6)