While mortgage rates are again approaching historical lows, rising prices and a shortage of listings is causing some potential buyers to wait it out. Home sales fell this quarter partly because there are not many houses to buy, but also because of fierce competition and higher prices. Additionally, high lumber costs are contributing to higher new construction prices.
Although rising home prices are discouraging some buyers from acting, it’s not impossible to find the right house. Experts advise that preparation and persistence is key to success. If a buyer can be flexible and organized, that’s even better. It’s worthwhile to consider priorities ahead of time to prepare for the fast-paced competition. Those who purchase a home now may have to pay above the asking price, but the silver lining is that low mortgage rates continue to benefit buyers.
For sellers, it’s crucial to be realistic and understand what market segment your house falls into. Although headlines proclaim that the housing market is frenzied, and houses are getting top dollar across the board, that is not exactly the case. Homes in certain price ranges are selling quicker than others, and it is important to educate yourself on what buyers are looking for, and make essential changes or renovations, to maximize your return.
The Delta Covid variant could unfortunately become a factor in the coming months. Fear of renewed lockdowns and closures might deter some buyers and sellers from participating in the market, but the good news is that we are not going in blindly as we did in 2020. REALTORS understand the psychology behind these anxieties and can better help clients navigate the process to ease into successful transactions.
Even though some properties are sitting a little longer on the market than they would have in previous months, the bottom line is that there are still more buyers than sellers, resulting in quicker sales and generally rising prices. Experts predict that the market will remain strong due to increased demand fueled by our strengthening economy and work-from-home opportunities. Both buyers and sellers can take advantage of this period to create a plan of action that works for them.