Buyer’s Market VS Seller’s Market
I think it is safe to say that we are currently operating in a Seller’s Market. The national median home list price reached a record high of $392,000 in February which is up a whopping 12.9% since this time last year. On top of the price increase, due to an inventory shortage the homes are not staying on the market very long. In fact, according to Realtor.com data, homes sold in an average of 47 days in February, 17 days faster than February of last year and an incredible 32 days quicker than February of 2020.
One piece of advice that potential sellers may need to take into consideration is that if you intend to sell your home and have some upgrades or repairs that need to be done first you should act fast. Repairs and upgrades are taking longer to schedule and complete due to shortages of supplies and labor.
It is not all bad news for wanna-be buyers! While the continued high demand for housing will remain it won’t be near as intense as it was at the peak of 2021. Home prices will continue to rise but at a much slower pace than last year.
Additionally, the extremely low inventory helped to create a buying and bidding frenzy in the past but more recently the number of new listings have increased and an influx of new construction has popped up locally, which helps to level out the bidding wars and keep prices more reasonable.
Mortgage rates have been slowly climbing over the past 6 months with the 30-year fixed rate averaging about 3.89% at the end of February and now already at 4.14%. Many experts are predicting that this will continue to rise. This may be the best time to go ahead and buy before rates get much higher.
The market is still favoring a Seller’s Market but that shouldn’t deter motivated buyers from entering the arena and finding their perfect home. With increasing mortgage rates and shortages this may be the best time to buy for the foreseeable future!