• patty9589

The Market is Shifting. What Does This Mean?

If you are a buyer you've probably been feeling frustrated and exhausted with chasing homes just to have them slip between your fingers. You've probably went over budget just to be able to have a home that's close to your needs.
If you are a seller, you've probably felt like you can do the bare minimum and still make a large profit.

Whichever side you are on, the market is shifting, and it's important you are aware and make decisions that will help you.

Here is what's happening:
1. Interest rates are rising and currently sitting at about 5-5.5% for a 30 year mortgage. While rates are going up from the beginning of the pandemic, it's important to remember that they are still historically low. Rates will keep rising, which means waiting around probably isn't the best idea.

2. Demographic influx- the newer generations are larger. Millennials are already in the real estate market, while gen Z will enter in the next few years. Due to their size there will be a need of more homes. Due to this increase in demand it is smarter to move faster now.

3. Inventory is increasing- while demand is high, inventory is also steadily on the rise. While new construction isn't happening very fast, there is still a constant upward trend. This will help bring balance to the supply and demand.

4. Increase in savings- staying at home during Covid-19 has resulted in an increase in savings for many households. Instead of spending it on momentary items, invest your money in real estate to start growing equity. These savings are an opportunity to use your buying power in a way that will build you wealth over time.

5. Rent isn't a better option- rent has gone up 12% compared to last year. Rents are inflating due to the demand in the market. It may be time to look at buying to ensure you have a more stable and lowered monthly payment.

Overall, the shift that's happening is a positive one. If you are in the market to buy or invest, seize the moment. If you are a seller, understand that there is a strategy to ensure you get the most out of your home, while not overpricing it.

Interested in starting your real estate process? Reach out for a free consultation.

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