What’s my house worth now? Can I get a good deal as a buyer? Should I wait for a ‘crash’ to happen? Is waiting better than acting now? Is it a good time to buy or sell a house?
Good questions. The answers, dependent. We have this fascination of finding one single post that has all the answers to our Real Estate needs, and no page I’ve read lets you know the truth. It depends on you and your situation! It can be a perfect time to buy right now! It can still be an excellent time to sell! It could also be the opposite. To truly know where you stand you need to contact me.
Now, has the market changed? Absolutely. We are no longer in a straight Sellers Market. Tactics need to change for sellers and buyers. Most all houses are not getting what they were offered in March (our high-water mark), considerably more homes are taking offers with conditions, and the bottom line is – going forward we need to adjust methods.
What do Sellers Need to Know
You are not going to get what people received months, even weeks, ago. This is a direct result of the considerable interest rate increase and a massive increase in the quantity of homes on the market. I wrote about the shortage of homes a few months ago – that’s now completely the opposite of what we are seeing now.
As for inflation – here is a simple example, based on fixed rate and 5-year term with a big bank: a home costing $700,000 with 20% down, 25 year amortization in February of this year would have a monthly mortgage payment of approximately $2,370. In July, with a big bank current rate of 5.54% at the time of writing, that exact same home – $3,430. Buyers simply can’t afford what was offered before. Homes are sitting, buyers are waiting.
What do Buyer’s Need to Know
It’s your market, get your agent to protect you. in a growing number of cases clauses and conditions are being used. However, many buyers are waiting for this idea of a “Market Crash” to come before entering the market to buy, and they will be waiting a long time, maybe forever. Everyone is an expert for some reason, and yet those people simply don’t understand the situation. This isn’t 2008.
My recommendation – if you’re looking to buy, enter the market now especially if you’re renting. Your budget has changed but more houses have entered it. If you have a home to sell, be sure to add a condition for it. For those waiting for a housing collapse, maybe a guy named Warren Buffet can help you here: “A public-opinion poll is no substitute for thought.”.
Each situation is different. For information directly related to your situation, please contact me.