If you ran into someone from the Red Sign Team, or any real estate agent for that fact, and asked, “How is the market doing?” They would tell you its hot! We are currently in a sellers market, but there is still really good news if you are a buy a house now. Most people think if we get in a seller’s market that it is more difficult to buy a house and that they will have to “over pay.” That isn’t the case in the this unique market.
We have an interesting thing going on in our real estate market. Interest rates are hovering around historic lows making home prices affordable. Yet, at the same time we see home prices going up. So is now the time to buy a house? YES!
Can you see this spike in the Pended home sales? These are the houses that have accepted offers on them. You could almost think of the likes as blue is sellers that have there homes on the market waiting for offers and red is about a month lag behind of serious buyers. There are more buyers than the red line because many houses now get multiple offers. As you can see there are almost as many offers accepted on homes as there are homes on the market. Economics 101 would tell us when demand is greater than or reaching supply prices of the market will increase to level off supply and demand.
Historically home prices trend upward even after the supply and demand level out because it usually takes 30 days to close so the market can’t start to correct itself as quickly as other markets. With them being so tight right now we say you should buy a house now so you can take advantage of an upward market. In this market it is hard to find a deal where you have 5%+ of equity right as you buy (i.e. the appraised price is 5% more than you are buying it for). But if you act quickly you can ride this market up rather than buy at the top.
Quick note for sellers.
There are more homes being sold now. There are less homes are the market. Why not list your home and be one of our homes getting multiple offers.