Here’s how both buyers and sellers win in our current real estate market.
I’ve had a mentor and coach throughout my 30 years in real estate, and he’s been in the business for about 50 years. I truly respect his opinion, and I was recently asking him what he thinks of our current real estate market. He said that this is the best market ever, and I agree.
In February, active inventory decreased by 60% compared to a year ago. Despite that, our sales are still higher than last year by 7% to 15%. Since fewer homes are coming onto the market, prices are continuing to rise.
If you’re a seller in this market, you’re likely to get the best price in the history of real estate. However, that doesn’t apply to every home; just like the stock market, the market could be up, but you may own some stocks that went down instead. Overall, we couldn’t ask for a better market.
"In our market these days, sellers will get an excellent price and buyers will get a fantastic rate."
If you’re a buyer, you may be wondering how this can be good for you. Well, the market has bottomed out—not with prices, but with interest rates. Interest rates have such a massive impact on the affordability of real estate.
Here’s an example: Two years ago, rates were hovering around 5%, and right now they’re at about 3%. That means that if you were to borrow $683,000 today, your payment would be the same as a $500,000 mortgage two years ago. You have $183,000 more buying power now than two years ago. That’s another reason home prices are trending upward.
So, in our market these days, sellers will get an excellent price and buyers will get a fantastic rate. That’s why our market is so active; it’s stellar for both buyers and sellers.
If you have any questions about our market or real estate in general, give us a call or send an email. We would love to be your real estate resource.