I’ve been doing research on the real estate market, and the experts agree that conditions are shifting down. Prices are flattening and sales are slowing: We were down 6.4% in sales from December 2017 to December 2018 and we’re going from a normal market to an abnormal market.
An abnormal market, like the one we’ve seen for the last few years, has low inventory, low interest rates, very quick home sales, and rapidly rising prices. Because rates were so low, prices kept going up and things were going swell for sellers. A normal market, like the one we have now, has a bit more inventory. This means that homes are taking longer to sell. We’ll also have higher interest rates.
Usually, it takes three to six months for everyone to notice and adjust to a market shift. Until then, we’ll see home sellers trying to overprice their homes, which will lead them to come down in price or end up failing to sell.
When there are more homes on the market, there are more options for buyers. They will be more strict about what they’re looking at and won’t let certain things slide like they used to.
"Smart buyers and smart sellers are getting into the mix now."
However, there should be a sense of urgency if you're thinking of selling. Here in Montana, houses sell during every month of every year. If you have the choice of listing now when there are only 200 other homes on the market or in the spring when there are 600 homes on the market, the choice is clear.
As far as buyers are concerned, you can take advantage of the market, too. Once more homes come on the market, you’ll be able to get a little more aggressive on your offers because there will be so much more for you to choose from. A smart buyer is going to buy now as well before interest rates go up again as the year goes along. Be ready to get out there and start looking at homes today.
If there's anything that we can do to help you buy or sell a home in the next year, don’t hesitate to give us a call or send us an email. We’d be happy to put our team’s expertise to work for you and help you accomplish your real estate goals. I look forward to hearing from you soon.