As temperatures start to rise and the holidays behind us, we usually see an uptick in real estate transactions. While spring is generally known as a busier season for real estate, we find ourselves in a very opportunistic time for buyers and sellers. Low inventory and interest rates have taken a typically busy period and turned it into one of the busiest times in history.
Inventory Is Low
If you haven’t heard, the real estate inventory is beyond low in almost all United States cities. A combination of historically low rates, and a lack of sellers, has made it a real “Seller’s Market.” While there has never been a better opportunity to buy and sell, it is essential to understand the challenges you will face as a buyer and seller.
As a buyer in this Seller’s Market, you must be prepared to do what it takes to land your dream home.
Currently, buyers are in a unique position to afford much more home than they could in the past. This means that you may be able to:
- Buy in your desired neighborhood
- Land a home with more bedrooms and space
- Spend less monthly to get a more expensive home
This newfound opportunity also comes with one significant drawback… you have much more competition. These low rates have made many people start to consider buying a new home, and you will come up against:
- Multiple offers on your dream home
- Bidding wars
- Having to come above the asking price
- Larger Due Diligence fees
- Less negotiating power after inspection
- Having to tour way more homes
- Settling on a home that may not be ideal
This increased demand for homes has benefited nicely for sellers. People can take advantage of this opportunity and:
- Sell for above market value prices
- Sell and close quickly
- Spend less time and money on marketing their home
- Sell without upgrading/updating
The disadvantage of being a seller in this market is that you will eventually need to buy a new home eventually. While it may be easy to sell your home, you may be searching for a new home for months. Helping your lender and real estate agent know your goals early will allow you to develop a plan.
Mortgage Loan Turn Times
The low-interest rates have also caused a considerable spike in refinance transactions. This means that lenders are overwhelmed with more business than they can handle. Depending on how your lender operates, you may be waiting months for your mortgage to be approved. When determining which offer to accept, sellers will look at who can close the fastest. To be competitive, you need to work with a lender that puts purchase loans first.
If you are looking for a purchased focused lender that knows how to help you get an accepted offer and close smoothly & on time, click here. You can speak with one of our licensed mortgage loan experts and start your home buying journey today.