As the weather begins to cool down this week, many people are asking if the real estate market is doing the same?
Buyers and Sellers have not been on the same page since 2020.
Buyers, in fact, (64%) believe now is a bad time to buy. However, on the selling side, sellers (72%) believe now is a great time to sell.
But what is feeding these beliefs and are they true? Let’s dig in and decide for ourselves.
On the buying side, let’s look at today’s market.
Buyers are still struggling with the fierce competition that includes bidding wars, low inventory, and inflated prices of anywhere between 15%-20%.
While the rates are at an all-time low now, the word on the street is that they may climb a little as we end 2021 but they’re unlikely to spike in the near future.
The Federal Reserve has pledged to keep the interest rates low through 2022 but claims they may rise in 2023.
Although the Fed’s don’t set the mortgage rates, their policies do tend to influence how mortgage rates trend. If they keep the rates low, there is a good chance the rates will still be low as more and more sellers decide to sell and increase the inventory. This is when we will see the scales of balance come back into a level playing field and possibly even favor the buyer by mid-2022.
If you aren’t personally watching it daily or weekly, make sure you have hired an experienced Realtor and Mortgage lender that are communicating with each other on your behalf to be sure they keep you informed on when to strike.
On the selling side, there is no question that some people are late to the party because it is in full effect.
Party on the Top Floor
Sellers this year have taken full advantage of sometimes being the only home in their neighborhood to go on the market and the payoff was BIG!
With rates low, high demand, and low inventory. This perfect storm made the market shift into a seller’s market quickly. some people even bought in early 2020 then resold this Summer and made a profit.
But there is a catch… While sellers were counting the dollar signs, they quickly realized that closing day was approaching and they were now “The Buyer.”
This means they too would be out in the Hunger Games of buying.
So, unless the seller is downsizing or moving to a market that isn’t suffering from a shortage, finding a home may prove to be difficult and costly. Selling your home at an all-time high and then finding a great deal on a similar or larger home could backfire.
Now that the neighborhood is buzzing, more and more sellers are deciding to put their homes on the market, I mean, why not see what you can get for your home in this Hot Market, right??
If more sellers do come forward this could cause an “Overdue Market Correction” which will push the market prices closer in line with current home values, therefore creating balance.
2022 looks Amazing for both the selling side and the buying side. Sellers will still see a fantastic profit while buyers will have more to choose from and still benefit from the low mortgage rates. It’s a Win-Win.
End of Year Tip; If you are looking to buy in the 4th quarter of 2021, then look for homes that have been on the market all Summer, these are the ones that want to sell but have been reluctant to drop the price, and property taxes are coming up. These sellers may be willing to take a lower-priced offer now more than before.
We have a running list on our radar.
Contact a Big Fish Real Estate Elite agent for the watch list.
Looking forward to 2022, if you have questions, need recommendations, need advice on investing in real estate, or just want to chat, give me a call.
Broker / Owner, GRI, Florida Real Estate Instructor
Big Fish Real Estate, LLC