Now is a good time to sell, and a good time to buy
Three of the most common questions REALTORS® hear are these days are:
When will the housing bubble burst?
Is this a good time to buy?
Is now a good time to sell?
The answer to the last two is yes. I’ll explain after a brief visit to the weary housing market crash question.
Given current conditions, there is no housing bubble to burst. Our market is seeing some softening. Experts think it will be a slow, long-term adjustment – not a crash. So far, the short-term adjustment looks to be about 2.5% to 3%.
Compare that to the state of the local market at mid-year.
So far this year, the single-family and condo sales are 21% higher than last year. The mid-point for prices is 17% higher than last year. The average sales price is higher – up 24% – but it has been skewed by the sale of so many high-end homes. The bottom line is a 3% decline from a sales price growth rate of 17%, and a sales growth rate of 21% is not a red flag.
One more thing about price/value appreciation. This market’s historical appreciation rate is between 2.5% and 3%.
Is now a good time to sell?
We’re in the strongest local sellers’ market real estate professionals have ever seen. Demand is high, and the market has pushed prices to record highs. Homes are selling faster than ever, and in June 54% of the sales were above list price. One pause for some is that as soon as their sale closes, they become buyers or renters in this fiercely competitive market.
Is now a good time to buy?
The reality of real estate is it’s always a good time to buy or sell if the conditions are right for the individual. Buyers in today’s market face a lot more competition than in years past. And they’re paying more. The balancing factor to that is sub 3% mortgage rates give them a lot more buying power.
Another factor in their favor is some housing experts are telling buyers it’s a good time to take a break and wait for the market to cool down. In some cases, that’s pretty good advice. Seasonal slowing, the reality that mortgage rates will increase, and a slight increase of more inventory should result in less competition.
At the same time when some buyers retreat the options increase for buyers who stay.
There are so many things that vary for individuals that there’s no single answer to the best time to sell or buy question. Real estate transactions are hyper-individualistic, just like the market is hyper-local. That’s why both buyers and sellers should back away from what they see on TV or read about national housing conditions. What the market is doing on the national level from even the best sources may or may not accurately describe local market conditions. What consumers need is how market opportunities align with their needs.
The time-tested and most reliable real estate information is local and comes from local experts. The most reliable information resource in the Northeast Tennessee Association of REALTORS®’ (NETAR) monthly Home Sales, Commercial Real Estate, and Pending Home Sales reports. The reports and data behind the reports are available on the NETAR website at www.netar.us . The experts are the local REALTORS® who spend who have the resources and street knowledge of what is and isn’t happening in the local real estate market.
NETAR is the voice for real estate in Northeast Tennessee. It is the largest trade association in the Northeast Tennessee – Southwest Virginia region representing over 1,500 members and 100 affiliates involved in all aspects of the residential and commercial real estate industries. Pending sales, Trends Reports, and the regional market analytics can be found on the NETAR websites at https://netar.us/voice-real-estate-northeast-tennessee.