Homebuyers are always curious as to whether they are receiving a decent deal on their home. However, in today’s market, answering this issue is rather tough. Also, while it’s a fantastic time to sell a home — homes are selling quickly and for top dollar — that doesn’t mean you should go into the market unprepared.
As we approach the peak of the home-buying season in the spring, homebuyers are focused on the state of the housing market, with many people examining whether now is a good time to buy or sell a property.
Last year, real estate transactions slowed as a result of COVID-19 business regulations, which prevented home purchases in several states, and some people may be looking to make up for the lost time.
However, this is not the case.
In fact, since the slowdown at the start of the pandemic, the real estate market hasn’t slowed down. The pandemic has fast-forwarded the clock for many families, who find themselves flocking to see homes in more suburban areas to have more space for their growing households. Furthermore, many people are eager to take advantage of their newly discovered ability to work from home by relocating from densely populated urban regions to rural locations, where they may save money on travel expenses by not having to commute.
So with this information, here’s what the real estate and financial experts say:
YOU’LL FACE STRONG COMPETITION SHOPPING FOR A REPLACEMENT HOME
During the pandemic, home prices have soared, and they are not anticipated to fall any time soon. According to the S&P CoreLogic Case Shiller national home price index, home prices increased by 11.2 percent in January 2021. Since the Great Recession, home price growth has been at an all-time high.
Home prices are rising so quickly because there aren’t many homes for sale right now, but demand is high. While this is good news for sellers, it is also a problem because sellers will still need a place to live, and they will be competing with all the other buyers for the limited number of homes available.
People who already own homes were cautious to put their homes on the market during the pandemic. It could have been because of the health dangers involved with COVID-19, and many people are still concerned about infecting their families by attending showings.
Because of the steep competition in the market right now, buyers are willing to make deals to make their offers more attractive. Sellers can take advantage of this by asking to move the closing date to coincide well with the purchase of their next home.
SELLER’S MARKET IS MORE COMPLICATED THAN YOU’D THINK
According to a NerdWallet study of 2,127 homeowners conducted online by The Harris Poll, about 1 in 6 (17%) want to sell their home in the next 18 months. Those listings will be a welcome sight to buyers currently competing for a limited number of homes commanding top dollar.
Among those people, 45% said that rising home prices and falling inventory have prompted them to consider selling earlier than they had originally planned. But homeowners should exercise caution in trying to game the market. Approaching the housing market is almost as difficult as approaching the stock market.
BUYERS NEED TO COME IN PREPARED
The ideal time to purchase a home is when you need to because your life has changed. Many people opt to become homeowners after they get married or when they have children as a way to have more control over their housing costs while also building wealth.
Determine how much you can afford to spend each month on your mortgage, insurance, and home maintenance. Use this to figure out how much you can afford. And then — here’s the challenging part — avoid looking for homes at the top end of your price range. In many areas, homes are being bought up considerably over the asking price, and if a buyer lets emotion get in the way they may end up in financial trouble.
JZ Home Buyers can help you sell your home fast with a fair, cash offer. We have been helping clients in the states of Texas and Florida. Call us today at 817-382-3579 for a no-obligation call on how we can best serve you.