As we enter the spring and peak season of home buying in the country,
it’s a good idea to know what to expect if you’re buying or selling this year.
Even though interest rates are on the rise, home values are at a 10 year high and there is a shortage of homes for sale all across the country.
If you remember economics class, it’s all about Supply & Demand. There’s plenty of buyers, but not many homes, therefore prices are high.
There’s pros and cons to this market type. Check them out.
Info for home buyers:
Be prepared to encounter:
- Bidding wars.
- Limited houses to choose from.
- Sellers not willing to budge very much.
- Inflated prices.
If you find the exact home you’re looking for, be sure not to stretch yourself thin, but prepare yourself to bring your best offer up-front. Sellers are turning their homes quickly right now, so you might not see the levels of flexibility on price/terms that you have in the past.
Info for home owners:
In the fastest five markets across the country, homes are market for less than 21 days. Prices are high, which is excellent if you’re wanting to make a move… but many homeowners might be wary to sell their house as they might not be able to find a home to move into.
This is a great time to refinance your home if you haven’t taken advantage of a lower rate, yet. Likewise, with the increased values–you likely have some equity available. However, if you’re like me, your property taxes might increase due to higher property values. This is definitely something to plan for if you escrow your taxes into your mortgage payment.
More info found at: CNN Money