Here’s what you need to know about our shifting real estate market.
Is now a great time to buy? Recently, we’ve seen shifts in our market that indicate it could be turning around for buyers. Today, I want to talk about what they are and what they mean for you.
Over the last year or so, we’ve seen one of the craziest seller’s markets in my lifetime. This has been great news for sellers, but it understandably left a lot of buyers feeling burnt out. It’s frustrating having to compete with 10 or even 20 buyers on every offer. Our market is still hot; however, we may be seeing signs of the market cooling slightly in Massachusetts and New Hampshire.
There are a few big factors leading to the slowdown:
1. Interest rates have been slowly creeping up. At the beginning of the year, they were around 2.8%. Now, they are closer to 3.1%. These are still great numbers, but even a small increase can have an impact on buyer demand.
2. We’re seeing fewer buyers entering the market. This is probably the result of seasonal changes, but it could also have something to do with buyer fatigue.
3. Inventory is slowly rising. Sellers can sense the seasonal changes, and they want to take advantage of the hot market while they can.
These factors could lead to an improved buyer’s market. However, there are still a lot of unknowns. COVID is still impacting the housing market, and a huge infrastructure package could inject a lot of money into the economy. On top of that, renters could be entering the market now that the eviction moratorium is over. What we do know is that over the next few months, buyers may have a window to get a great deal.
If you’re a seller and you’re concerned about this news, don’t worry. It’s still a seller’s market, but you have to be reasonable about your pricing. You probably won’t continue to have 20 offers no matter how you price your home.
There are a lot of moving parts in our current market, so if you have any questions, please reach out to me via phone or email. Whatever side of the market you’re on, I look forward to getting you the best deal possible.