This question seems to come nearly every day in one form or another. We think of a “buyer’s market” as a good time to buy, and we think of a “seller’s market” as a good time to sell.
So which is it right now in October 2014?
For those contemplating a real estate purchase, interest rates and prices are both good reasons to move ahead. The recession that began in earnest in 2008 brought real estate prices back down to earth. They’ve begun to recover their former luster, but are still substantially lower than they were just a few years ago. Interest rates are still quite low, though they’re climbing at a slow and steady rate. Fannie Mae expects interest rates to rise about 1 percentage point between now and the fourth quarter of 2015. But even if that comes about, interest rates will be very attractive compared to where they’ve been in many past years.
So you’d have to say this is a buyer’s market, right?
“Inventory” remains low. There is only about a four month supply of homes on the market, which means if no additional homes come on the market, they’ll theoretically all be sold in four months rather than the six months we think of as “normal.” Buyers in growing numbers are competing for a limited number of properties, thus affirming listed prices and helping sellers to fend off lowball offers. In fact, many sellers of homes that are in good shape and “move-in ready” are seeing multiple simultaneous offers, often at prices higher than the asking price.
So perhaps this is a seller’s market?
The truth is that both are correct. This is an attractive time to buy and, if you have equity in your home, a good time to sell. If you’ve been looking for good news, there it is !
Whether you’re considering a real estate purchase or the sale of a home you’ve owned for awhile, please call or email us. We’d be delighted to learn more about you and your situation and to help you make good decisions.