Market Snapshot – it’s currently a buyer’s market.
I had some friends over to my house that other night and of course, the topic of the current real estate market came up over drinks. My friend stated that they were expecting a real estate market crash and that prices will be declining steeply. I do not share this opinion.
What we are experiencing is a true “buyer’s market”. Folks were holding off on putting their homes on the market and trading their low interest rates (3% and below) with new higher interest rates to purchse (around 6%). With it becoming clear that rates aren’t coming down anytime in the near future, folks just went ahead and decided to list their homes THIS SUMMER.
Qualified buyers are out there, just not in sufficient numbers to buy these listings. Who can qualify for a loan in the 6% range when they are just starting out? Adding to the high payment for buyers just getting started in the market is “private mortgage insurance”(PMI), which is needed for non-VA buyers with less than 20% down payment.
Besides lower numbers of buyers in the market, there are often “pickier” buyers that will demand repairs or significant financial concessions when issues are discovered in the process of a home inspection or when a repair is called out during an appraisal.
What to do if you are a seller? Make sure your home is in great condition. If there is a needed repair – fix it. Get the home looking its best and work with your agent to price it fairly.
And if you are a buyer? Be serious about your search. Make an offer on a home when it really meets your needs and budget. Make a reasonable offer – low balls aren’t generally appreciated or successful. When asking for concessions after a home inspection – be reasonable. Focus on health and safety issues rather than style issues. One day, you may be a seller in a buyer’s market.
Olympia Real Estate Blog 