Rates UP, Inventories Up: Is this the beginning of another Real Estate Crisis? Or Not?
Buyer’s Market? Who knows. Personally, I believe the market will slow down because nothing lasts forever. The good news: there is always a market, always buyers and always sellers. And the market is continuously moving. If your property goes for thousands over list price, then if you are going immediately into a purchase expect your are going to pay more because you are in high selling market. It’s a dilemma. And that is one of the reasons why sellers don’t sell when the market is paying higher dollar amounts for their properties. Then again If you sell and the market has flattened, you are likely to benefit when you are purchasing because the market is more stable and less inflated. The market is the market and the reason to buy or sell is your personal circumstance. If you need to move, then you should move and as your agent, we will help you to get the best deal in any market. Its 6 or half dozen.
This seller’s market has been something else. It is highly unusually in a midwestern city of less than 4 million people. It’s something that happens in those larger metropolis’ and now has become just ‘what it is” like Los Angeles, Chicago, New York, Miami or Boston.
According to the Ranking folks, Columbus for more than just a moment was the 5th hottest market in the country. Its funny because we also ranked pretty high when foreclosures where more than 30% of sales 2008- 2011.
So the questions remains, are we now going into a buyer’s market? This is what I think, I believe interest rates will climb a bit more and it will slow down the buyer’s eagerness. I believe seller’s will think they need to hurry up and catch the wave before they miss it and then inventories will rise. When inventories rise, the buyer’s will have more options in price, terms and selection of homes to choose from. Does this mean buyer’s market? No it does not, because the true test is if the market sustains the very heavy demand that occurs in the Spring 2019- through school starting months late July and August. It seems to me the shear numbers will push us right back where we were last spring in fiery, highest and best, stampede marketplace where buyers may bid on several before they achieve the goal of going into contract.
With all of that said, the fall is providing a welcomed opportunity for buyer’s to have better pricing, terms and selection for the next few months. Meaning, they may not be 15 to 20% overbidding to get in contract, or competing with multiple buyers for mediocre “needs work housing” or settling for less then they could get if they purchased in the fall.
I hope I left you with a fair minded, professional opinion that has been worth your time reading.
Theresa Barron is the Broker and the Owner of Take a Look Real Estate Brokers. She has been serving Central Ohio Homeowners and Buyers for more than 25 years. Theresa is a solutions oriented Broker. She and her team are out of the box thinkers and bring fresh ideas to their clients, adding immense value at a time when clients needs must be the focus. Give her a call if she can be of assistance to you in your home selling or buying needs. She loves what she does and it shows.