What’s happening to the housing market? Today’s Wall Street Journal headline is sobering: Home Sales Post Their Biggest Drop in Three Years.
Last year I presented a mid-year real estate update and projected that July of 2017 was the best time to have sold a home in our Austin real estate market. I may have gotten that exactly right.
The WSJ is reporting on the national scene, but our local market is affected by the very same factors: Shortage of inventory, high prices, and rising interest rates. These factors together are causing many buyers to say, “enough is enough.” They are putting on the brakes.
Does this mean a crash is coming? Absolutely not.
Does this mean you shouldn’t buy. No, mortgage rates, although rising are still at historically attractive levels.
What is does mean is that if your home is on the market or you are thinking of selling, be sure to be competitive with your price. Price your home at a level that causes buyers and agents to be exciting about seeing your home and making an offer.
This is where I have exceptional skills, so call me for advice: 512-516-4666.
The real estate market is like any other kind of market. Whether you’re talking about the Stock Market, the Commodities Market, or even the Grocery Market down the street. What drives the prices you see is supply and demand.
Housing prices go up. Housing prices go down. The market works in cycles.
Currently we are in a cycle of rising home prices. In fact this Sellers market is expected to continue. Prices are going up because of a scarcity of inventory. There are more buyers than sellers.
Here’s what’s projected by Zillow.
Unfortunately, for buyers mortgage rates are expected to increase in 2018. What does this mean for you. Well, if you are a Seller, this is an excellent time to sell. If you are a Buyer, you can still take advantage of today’s mortgage rates that are still historically low. But don’t wait.
