If you’re currently in the market to purchase a home, you can attest to how confusing understanding the housing market is. Is it up? Is it down? Are experts worried? Are they jumping for joy?
Numbers, statistics, and contracts are thrown your way – and sometimes it can get overwhelming to understand where you fit in it all.
Don’t stress – you’ve come to the right place. We’ve got a few tips for you below to help you better understand where the market currently is, and how you can get a better idea of how it all works.
Buyer and Seller Markets
If you’re purchasing a home while it’s a buyer’s market (inventory is high, but there is a shortage of interested buyers; i.e., supply exceeding demand), then that means you have quite a lot of power. Lower prices, better closing dates, etc. are possibly on the table for you.
A seller’s market (many buyers, but low on inventory; i.e., demand exceeding supply) changes a little for the buyer – the seller might be receiving multiple offers, which would make it competitive for the buyer.
Each type of market has its pros and cons for both seller and buyer.
Inventory & Monthly Supply
Currently, the monthly supply for new homes is at 3.3 months. Why does this matter? Well, builders like to see monthly supply below 6.5 months to feel confident and continue building. If supply ever goes over 6.5 months, builders will pause in their building.
Lower mortgage rates also help builder confidence, because they know that lower rates means more buyers.
What 2021 Might Bring
Experts agree that we could be seeing real home-price growth in 2021. Most believe that mortgage rates won’t raise significantly within this next year (meaning it should stay below 4.5%).
Real estate doesn’t need to be intimidating – with Alliance’s Blog & your real estate agent, you’ll be armed with the knowledge you need!