What does the changing market mean for buyers, sellers? | Business


For anyone who has tried to buy or sell a home over the past year and most of the past year, your experiences have never been unlike any we have seen. In virtually every city in America, buyers were competing with more offers for the home they wanted, and sellers saw high demand coupled with increased selling prices.

It was not uncommon to see “better than full price” offers submitted by buyers. While those days may return, for now we have calmed down a bit.

This was brought on by the lowest mortgage interest rates in a generation, a historic shortage of home inventory, tons of economic stimulus in the market, and the natural desire to get a new home on favorable terms. Add in a few more mysterious economic factors and the picture becomes for the most part clear. May be.

What does this mean for buyers? Locally at least we are seeing new housing inventory through new buildings, but not enough. We are also seeing new inventory potentially added by retirees who are selling their homes and buying smaller homes like apartments.

The concept of musical chairs for buying a house seems to have lightened a bit due to the return of children to school and the resumption of work by many people.

Mortgage interest rates remain historically low and will be so throughout 2022. Currently locally, we are still seeing several “above demand” price bids and bids, but not in volume. pass. When you compare last summer with scenarios like 14 offers on a standard three-bedroom home in the $ 150,000 range today, this is an ultra-quiet market in which to operate.

If that’s any consolation, most real estate agents aren’t big fans of an overheated market, either. That’s 10 times more work and the same pay.

Summary: Now is a good time to buy a home as long as you can make a smooth transition from the existing home to the new home.

What does this mean for sellers? Well, the sales people have been in the driver’s seat during all of this and still are. With historically low mortgage interest rates, still lagging inventories and still strong demand, if you are a seller, you are in the seat of the “catbirds”. While in the seat of the “cats” you have seen the market value of your property increase dramatically, you have seen fewer “for sale” signs on your street and you are ready to do very well when you put your house on the market. Marlet.

Summary: Now is a great time to sell, but the market is still competitive enough to expect available properties to be very presentable. I would say, do a good home inspection, eliminate any minor flaws, and then market your home. Throughout 2022 and beyond, it is fair to expect a very positive outcome.

Of course, selling a house means having to find another, and that can take some finesse. Tip, see my previous article on “bridging loans” for advice.

Every community depends on a tidy real estate market to provide good housing options for all. The real estate industry is perhaps the only business where direct competitors must work together to make home sales possible.

I applaud the over 500 Hardin County Realtors who have grown to meet the recent challenge and the professionalism they have shown in working with each other.

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