The dynamics of real estate feel like they’ve spun on a dime in a matter of weeks.
Folks who were offering above-list-price have suddenly become wary. All markets go through economic cycles, and property is no different.
For those seeking to sell or buy right now, you’ll find a much more accurate truth behind the headlines that proclaim descending median averages for the number of sales and prices.
The reality is that America is not one market but tens of thousands of individual neighborhoods with their own performance indicators for the number of sales and prices achieved. The mood may be changing but not necessarily the numbers in your area.
Much has been made of the fact that there are 18% more properties on the market than last year. But the data from realtor.com also suggests we’re still more than 50% down on pre-pandemic numbers.
So, if you’re seeking a new property, this is a good time to re-evaluate your strategy.
As an experienced agent, I appreciate buying a home is an individualized decision. So, here are a handful of tips for you as you watch the property market revert to more typical behavior.
Are you confident?
Double down on your motivation for moving or buying your first property. You should be confident this is the right decision to achieve your wealth goals and lifestyle ambitions, and that you are 100% committed to meeting the costs.
Check your lender
Reassess your prospective lender. It won’t do any harm. With the increased mortgage rates, many people are shopping around. Lenders are keen to win new business. Perhaps you’ll find a better deal.
Break down your likely mortgage costs now that rates have edged higher. Think of your payments in monthly increments to assess the impact. Remember, you’ll likely pay slightly less for your target property. So what you lose on the swings, you’ll gain on the roundabout.
Make a plan with your agent that covers the process of making a competitive offer. Sellers are not desperate right now, and if you make an offer that’s too low you’ll end at the back of the queue.
If the rate rises have put your first or next property out of reach for the moment, seek some financial advice to help you create a savings program to get back on the property ladder as soon as possible.