Why the Current Market Favors Sellers
Filed under: Real Estate Market
Sellers are at an advantage when it comes to real estate. A house goes on the market, and within 4 hours, it has several bids, many above the asking price. Why is this happening? And how can you get the house of your dreams in this competitive market?
Low-Interest Rates Combined with Low Inventory
With interest rates coming in so low right now, it is the perfect time to buy a home. But as buyers are searching, they find that there aren’t many homes out there available. A home goes on the market, and several buyers go after that one home. The buyers are able to bid higher on the house because interest rates are so low, so they are approved for higher-priced homes. And the seller benefits significantly from this combination.
Flexibility of Low-Interest Rates
If interest rates drop just 1%, then a buyer can afford 10% more on a home price. So if a buyer is approved for $500,000 at 4% and interest rates lower to 3%, now they are approved for $550,000. Because of this, buyers can really bid up a house when there are few houses available right now. With this cutthroat market, it can seem like you’ll never find and actually win the bid on a place that’s right for your family.
Contact a Real Estate Expert Today
If you have been trying to buy a house and are failing, I can help you with that. The whole state of California has a crazy real estate market right now, especially Temecula. Whether you are buying or selling, my expertise will maximize your money and secure the home that’s right for your family. You can take control of your real estate issue by texting, calling, or emailing me at (951) 473-0390 or [email protected].