The last few years have been anything but “normal” when it comes to real estate. A normal market is balanced between a buyer and seller; one side does not have much of an advantage over the other.
- There are more homes to consider
- Less urgency to act immediately
- Home inspections are not waived
- They can request concessions from sellers
- There are fewer bidding wars
- Homes are not bought sight-unseen
- Homes priced right sell quickly
- Equity in the home is built over time
- Homes may stay on the market longer
- Offers usually received at or close to the asking price
- May need to make repairs and/or concessions
A Seller’s Market occurs when there are more buyers than properties available. There is more competition, especially for homes priced right. Buyers may waive home inspections and requests for repairs.
A Buyer’s Market occurs when there are more properties for sale than buyers. Homes may stay on the market longer and sellers may have to make concessions and/or price reductions.
A Balanced Market is the transitional time, normally three to six months, between a buyers’ market and a sellers’ market. Residential property prices are stable and homes are sold at or near the asking price.
Currently, we are in a Buyers’ Market and until we can get more of a balance between inventory and buyers, homes will take longer to sell. Some are waiting for interest rates to drop dramatically, but analysts believe that future “normal” rates for a 30-year mortgage will be around 5% to 6% and truly this will be normal. The exceptionally low interest rates of 2% to 3% were never normal rates and most likely will not be seen again. So don’t WAIT for rates to return to that level or you will never purchase your dream home!