The Perfect Storm - NOW
Now is a great time to buy and sell.
Like any market, the real estate market fluctuates. Sometimes it’s a seller’s market, other times it’s a buyer’s market. Rarely do the factors that determine this line up in a way that gives everybody an advantage.
Until now, that is.
Today we are in a state of equilibrium that benefits parties on both sides of the transaction. Here are a few factors that make this the perfect storm for buyers and sellers alike:
- Low interest rates. With interest on conventional 30-year loans hovering around 3.5%, and rates dipping below 3% for 15-year loans, buying a home is more attractive than ever. Buyers win because the interest rates make mortgage payments affordable; sellers win because there are more buyers competing for their homes.
- Lower inventory of houses. Over the past few years, buyers had the luxury of looking at property that took months to sell, while sellers often felt hopeless as their homes languished on the market. Today in the Kansas City area, the total number of homes sold has increased by 16% over last year, while the time it takes to sell has decreased by 15%. Figure in the overall lower number of houses listed for sale, and you’ll see that the market is not only out of the doldrums, but has turned downright brisk. This activity is spurring hesitant sellers to list their homes, which in turn gives buyers more choices.
- Average sales price is on the rise. Home prices remain affordable, but existing and new homes are selling for higher prices than they received last year, and that increase will likely continue. Buyers need to act now if they want to get the best bargain.
By looking at the recent activity in the Kansas City market, it’s clear that the perfect time to buy or sell is now. In next month’s post, we’ll talk about a new trend in home sales: the speed-dating approach. Learn the strategies people are using to successfully sell their house in just one weekend, and whether this method may work for you.