Why It’s Still a Sellers’ Market
As there’s more and more talk about the real estate market cooling off from the peak frenzy it saw during the pandemic, you may be questioning what that means for your plans to sell your house. If you’re thinking of making a move, you should know the market is still anything but normal.Even though the supply of homes for sale has been growing this year, there’s still a shortage of homes on the market. And that means conditions continue to favor sellers today. That’s because the level of inventory of homes for sale can help determine if buyers or sellers are in the driver’s seat. Think of it like this:A buyers’ market is when there are more homes for sale than buyers looking to buy. When that happens, buyers have the negotiation power because sellers are more willing to compromise so they can sell their house.In a sellers’ market, it’s just the opposite. There are too few homes available for the number of buyers in the market and that gives the seller all the leverage. In that situation, buyers will do what they can to compete for the limited number of homes for sale.A neutral market is when supply is balanced and there are enough homes to meet buyer demand at the current sales pace.And for the past two years, we’ve been in a red-hot sellers’ market because inventory has been near record lows. The blue section of this graph highlights just how far below a neutral market inventory still is today.What Does This Mean for You?Ed Pinto, Director of the American Enterprise Institute’s Housing Center, gives a perfect summary of what’s happening in today’s market, saying:“Overall, the best summary is that we’ll move from a gangbuster sellers’ market to a modest sellers’ market.”Conditions are still in your favor even though the market is cooling. If you work with an agent to price your house at market value, you’ll find success when you sell your house today. While buyer demand is softening due to higher mortgage rates, homes that are priced right are still selling fast. That means your window of opportunity to list your house hasn’t closed.Bottom LineToday’s housing market still favors sellers. If you’re ready to sell your house, let’s connect so you can start making your moves.
Por qué sigue siendo un mercado de los vendedores
A medida que se habla cada vez más sobre el enfriamiento del mercado de la vivienda del frenesí máximo que se vio durante la pandemia, es posible que se pregunte qué significa eso para los planes de vender su casa. Si está pensando en mudarse, debe saber que el mercado sigue siendo cualquier cosa menos normal.A pesar de que la oferta de las casas en venta ha estado aumentando este año, todavía hay una escasez de casas en el mercado. Y eso significa que las condiciones continúan favoreciendo a los vendedores hoy. Esto se debe a que el nivel de inventario de casas en venta puede ayudar a determinar si los compradores o vendedores están en control. Vealo de esta forma:Un mercado de los compradores es cuando hay más casas en venta que compradores que buscan comprar. Cuando eso sucede, los compradores tienen el poder de negociación porque los vendedores están más dispuestos a comprometerse para poder vender su casa.En un mercado de los vendedores, es todo lo contrario. Hay muy pocas casas disponibles para el número de compradores en el mercado y eso le da al vendedor todo el apalancamiento. En esa situación, los compradores harán lo que puedan para competir por el número limitado de casas en venta.Un mercado neutral es cuando la oferta está equilibrada y hay suficientes casas para satisfacer la demanda de los compradores al ritmo de ventas actual.Y durante los últimos dos años, hemos estado en un mercado de los vendedores al rojo vivo porque el inventario ha estado cerca de mínimos históricos. La sección azul de esta gráfica destaca cuán por debajo de un inventario de mercado neutral todavía está hoy.¿Qué significa esto para usted?Ed Pinto, Director del Centro de vivienda del American Enterprise Institute ofrece un resumen perfecto de lo que está sucediendo en el mercado actual, diciendo:“En general, el mejor resumen es que pasaremos de un mercado de los vendedores a la perfección a un mercado de vendedores modesto”.Las condiciones siguen estando a su favor a pesar de que el mercado se está enfriando. Si trabaja con un agente para fijar el precio de su casa a su valor del mercado, encontrará el éxito cuando venda su casa hoy. Si bien la demanda de los compradores se está suavizando debido a las tasas hipotecarias más altas, las casas que tienen un precio correcto todavía se están vendiendo rápidamente. Eso significa que su ventana de oportunidad para poner su casa a la venta no se ha cerrado.En conclusión,El mercado actual de la vivienda todavía favorece a los vendedores. Si está listo para vender su casa, vamos a comunicarnos para que pueda comenzar a dar sus pasos.
Buying a Home May Make More Financial Sense Than Renting One
If rising home prices leave you wondering if it makes more sense to rent or buy a home in today’s housing market, consider this. It’s not just home prices that have risen in recent years – rental prices have skyrocketed as well. As a recent article from realtor.com says:“The median rent across the 50 largest US metropolitan areas reached $1,876 in June, a new record level for Realtor.com data for the 16th consecutive month.”That means rising prices will likely impact your housing plans either way. But there are a few key differences that could make buying a home a more worthwhile option for you.If You Need More Space, Buying a Home May Be More AffordableWhat you may not realize is that, according to the latest data from realtor.com and the National Association of Realtors (NAR), it may actually be more affordable to buy than rent depending on how many bedrooms you need. The graph below uses the median rental payment and median mortgage payment across the country to show why.As the graph conveys, if you need two or more bedrooms, it may actually be more affordable to buy a home even as prices rise. While this doesn’t take into consideration the interest deduction or other financial advantages that come with owning a home, it does help paint the picture that it may be more affordable to buy then rent for that unit size based on nationwide averages. So, if one of the factors motivating you to move is a desire for more space, this could be the added encouragement you need to consider homeownership.Homeownership Also Provides Stability and a Chance To Grow Your WealthIn addition to being more affordable depending on how many bedrooms you need, buying has two other key benefits: payment stability and equity.When you buy a home, you lock in your monthly payment with your fixed-rate mortgage. And that’s especially important in today’s inflationary economy. With inflation, prices rise across the board for things like gas, groceries, and more. Locking in your housing payment, which is likely your largest monthly expense, can provide greater long-term stability and help shield you from those rising expenses moving forward. Renting doesn’t provide that same predictability. A recent article from CNET explains it like this:“…if you buy a house and secure a fixed-rate mortgage, that means that no matter how much prices or interest rates go up, your fixed payment will stay the same every month. That’s an advantage over renting since there’s a good chance your landlord will raise your rent to counter inflationary pressures.” Not to mention, when you buy, you have the chance to build equity, which in turn grows your net worth. It works like this. As you pay down your home loan over time and as home values continue to appreciate, so does your equity. And that equity can make it easier to fuel a move into a future home if you decide you need a bigger home later on. Again, the CNET article mentioned above helps explain:“Homeownership is still considered one of the most reliable ways to build wealth. When you make monthly mortgage payments, you’re building equity in your home that you can tap into later on. When you rent, you aren’t investing in your financial future the same way you are when you’re paying off a mortgage.”Bottom LineIf you’re trying to decide whether to keep renting or buy a home, let’s connect to explore your options. With home equity and a shield against inflation on the line, it may make more sense to buy a home if you’re able to.
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