Housing markets tend to fluctuate in every season. On a local or regional level. Thus, when deciding to move, you can potentially gain or lose thousands of dollars.
The first step when deciding to purchase or sell a home is to partner with a well experienced and trustworthy Local Real Estate Agent.
Why should I partner with a Local Agent?
Local agents have a considerable amount of knowledge and experience for buying and selling properties in the area. Therefore, they have a deep understanding of the local market, trends, interest rates, economic outlook, etc. And, how it can impact your ability to buy or sell at the most favorable price point.
What is a Buyer’s and Seller’s Market?
According to Investopedia, a buyer’s market is a situation in which supply exceeds demand, giving purchasers an advantage over sellers in price negotiations. The term “buyer’s market” is commonly used to describe real estate markets, but it applies to any type of market in which there is more product available than there are people who want to buy it. The opposite of a buyer’s market is a seller’s market, a situation in which demand exceeds supply and owners have an advantage over buyers in price negotiations.
Bankrate explains a Seller’s Market is a real estate term, indicating that there are more real estate buyers in the market than there are sellers. When demand is higher than the supply, home prices increase, which benefits sellers.
What is the 2019 forecast? Is it a Buyer’s or Seller’s Market?
Based on a survey of over 100 real estate economists and experts conducted by Zillow and Pulsenomics, it is predicted that home prices will continue to drop over the next two years. Bringing a shift in the market for 2019.
In May 2018, home prices have only climbed 6.4% – the smallest gain since 2017.
In 2017, the average rate for your typical 30-year fixed mortgage was a bit below 4%. As 2018 begun, the interest rates began to climb until they reached 4.52% in July of 2018.
After the market crash of 2008, the federal government took over and decided to artificially keep the mortgage interest rates low. This helped stimulate the market and allowed many who had been affected by the crash to get houses. Now that the market has become more healthy, the time for artificially keeping the interest rates low has passed.
Increased Interest Rates make it difficult to support a seller’s market.
I would like to sell my home now, is it a good time?
Now is the time to sell your home! The decline has not completely taken hold and prices are still high to make a profit.
I am searching to purchase a new home, should I buy now?
If you are planning to buy a new home, now is also the time to purchase! However, since the interest rates are continuing to increase, even if the price of houses level out into more of a buyer’s market, you’ll still be paying about the same when you factor the interest.
If you are an investor, now is the time to purchase a real estate investment property if you have cash! As property prices drop and interest rates increase, you can purchase a property at a great deal without the hassle of a loan or high interest rates.
Another suggestion is to put a higher down payment on your new home, to help reduce the interest rates.
Will there be another market crash?
Fortunately, the forecast suggests that there will not be a market crash for the time being. However, we cannot predict the future. To learn more about the forecast and trend, read the Housing Market Predictions for 2019 / 2010.
Many people are diversifying their investments into real estate, gold, and silver, as all three of those always have a tangible value on the market. They may decline a bit, but they have the propensity to rise time after time, making them a wise investment in the long run.