Because of the amazing pace of home sales in the United States, some people say that buyers and sellers should sit beautifully
If you are considering selling your home, logic seems to indicate that there may not be a better time now, right? You will let buyers initiate competitive bidding faster than the blink of an eye, and suddenly, your investment will produce unexpected results.
Some analysts are not saying that fast-they think the best strategy is to let the rising tide lift the well-known boat.
Those who follow the real estate market are paying close attention to several key indicators and long-term demographic trends to understand the actions that buyers and sellers should take in such a crazy market. There will naturally be differences between regions, which is the most desirable.
It is generally recognized that the combination of historically low interest rates has increased the demand of the entire market.
Low inventory. The epidemic has exacerbated the situation by slowing down new construction and increasing the cost of construction materials.
For buyers and sellers, the question is how long this situation will last.
This week, David Friedman put forward the reason why a seller’s market may be the “worst time” to sell a home. Perhaps this is an exaggeration, but his argument is that in the foreseeable future, interest rates, housing demand, and housing supply may remain roughly at their original levels. If this is the case, housing prices will continue to rise.
According to this logic, other people selling houses near your house are just pushing up the value of your property. From “Forbes”:
“In a strong seller’s market, as we saw in 2021, I encourage homeowners to wait patiently. Let others sell first. Throughout the process, they will set the highest price per square foot or per square foot. Set a new benchmark. Then, when the market rises and rises, it’s only time when it must be sold.
“The market has gone through a sine cosine pattern from a seller’s market to a buyer’s market, and then back again. Unlike the stock market, you can see a company’s transaction value plummet in a few minutes, while the real estate market usually takes months or years to change. The price will not rise one day, but fall the next day. The price rises steadily, and the time to sell is when the curve flattens slightly. You will benefit from the price increase.”
Friedman’s main statistics show that sellers should pay attention to existing and new home inventory. When inventory starts to climb, prices will flatten out.
Looking at the real estate market from the perspective of a buyer, Derek Thompson of the Atlantic
Those seeking housing should consider the reasons for waiting. For different reasons, his analysis also pointed out the inventory, and cited some evidence that the cooling ingredients are beginning to mix:
“After falling to a historical low in April, active inventory has actually increased for three consecutive weeks. This is good news. The bad news is that at the current rate, the number of houses in the national market will not reach the normal level. All conditions are the same. Under the circumstances, the level lasts for about 14 months.”
“However, rising inventories are one of several signs that we may be reaching ridiculous levels. According to data from real estate research company Altos Research, after a historical plunge, the share of houses that had to be sold at lower prices is finally rising. Housing starts. The rate has returned to the highest level since the Great Recession. Even if the price of timber in the stratosphere rises, there are not many houses on the market, but there are many new houses on the way-buyers just need to be patient.”
From personal considerations to financial advantages, there are many important things to consider when buying or selling a house. Those who have enough talent to track the market from a strong position and act in a timely manner are best to adopt a wait-and-see approach. There is no one-size-fits-all strategy in the real estate market, and those who gamble to control the situation always have to take their own risks.
The good news for sellers is that the current high prices may rise for a while. For frustrated home buyers, it is difficult for them to win a bid for a new house, and the relief of restocking may not be far away.