You can’t turn on the news today and not hear something about the Real Estate market. “Too Few Houses!” “Soaring Prices!” “My kids will never own a home!”
Recently, the narrative has changed to how much the market has pulled back in a few months. Prices have pulled back 10 percent, 15 percent, and sometimes 20% or more. Interest rate hikes and cost of living increases have also contributed to a sales reduction in the last few months. Today, it is not uncommon to see houses sitting for a few weeks and often re-listed with “improved prices”—something unheard of earlier in the year.
With all these contributing factors, buyers have more time to breathe, and you would think that buyers would be licking their lips with the opportunities—some, perhaps, but not all. As a Broker, I was excited to see this relief for my buyer clients. At last, the market was finally shifting more towards a balance between buyers and sellers. The shift has not only occurred in the market but buyer psychology as well.
When the market was at its peak, buyers didn’t have time to think about prices and demand. If you were looking to buy and there was a home of interest, you needed to act and hope that everything worked out – which for the most part, from the experience of myself and my team, it did. We are seeing now that buyers have a lot more time to think and sometimes worry or talk themselves out of making a move on a home, even if it’s the one they have been looking for. Although, we welcome the “breathing room .”Overthinking can be a dangerous proposition, which causes missed opportunities if not appropriately managed.
“Will prices go lower?” “Am I buying at the right time?” “What if the market crashes after I buy?” These are conversations real estate professionals are now having regularly.
It is essential to understand what is happening in the market and why it is a great time to buy. Below you will find my top five tips on making sure you are ready in any market, whether prices are at all-time highs, all-time lows, or somewhere in between:
Get the right team on your side.
Apps and online tools are great but aren’t a substitute for live and timely conversations with a Realtor, Lending Professional and Lawyer.
Do your homework.
Look at some homes with no intent to buy – spend a day or two going to open houses or showings in an area of interest. No pressure – spend some time learning.
Know your numbers.
Get your pre-approval, understand your cash flow, and do a spreadsheet with some different scenarios. One of the professionals from your team can help with this.
Make sure your team knows where you stand. Then, when you are ready to buy, they can provide the support you need to ensure you are confident and your decision is the right one.
Enjoy it! You’ve prepared yourself and are ready! You’re buying a house!