Many people have recently asked me, “What’s going on in our market?”
First of all, seller confidence is very high due to rising prices. Prices have risen so much in our area that it’s beginning to become difficult for buyers to find affordable housing.
As for inventory, we are seeing historic lows. Our entire local MLS had 2,700 homes for sale at the end of the year. Of those, 650 expired as we entered the new year, meaning now we’re left with just around 1,900 listings.
Given that we’re in such a hot seller’s market, though, you may be wondering why so many of those listings expired? It’s because sellers are confident and are, therefore, asking more for their homes.
"Prices have risen so much in our area that it’s becoming difficult for buyers to find affordable housing."
Interest rates have also risen, going from 3.3% to 4.3%. This makes homes even less attainable for buyers, today. Also, there isn’t much new construction happening recently. Developers are hesitant, but we need new homes in order to boost our market’s inventory.
That said, even though interest rates are not as low as they were, they are still very low overall.
Today’s buyers need to enter the market as soon as possible. Given the current state of the market, you will almost certainly have to pay the full asking price. However, there are still financing options out there that can help.
Even desperate sellers can still get full price in today’s market, so stay away from making any lowball offers.
If you’re worried about buying and selling simultaneously, have your agent put a contingency in your contract. This will protect you during your transition.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.