Why Sellers Call the Shots in the Current Market
Filed under: Real Estate Market
It is a seller’s market where they can call the shots with appraisals, inspections, and no concessions, while buyers have to agree in order to win a bid on a house. So why do sellers have the advantage? And how can you successfully navigate securing the home of your dreams in this current real estate market?
Low Inventory
The number of potential homebuyers is significantly higher than the number of houses for sale right now. This means that each home that goes up for sale is inundated with interested buyers.
Each home instantly receives multiple offers, many sites unseen. Appraisals are waived, inspections are not offered, and the condition of the home is a non-issue. Also, the price is inflated as the seller gets to choose which homebuyer gets their house.
Because a limited number of homes are up for sale, the power is in the hands of the seller.
Low-Interest Rates
Interest rates are still low, which provides flexibility for buyers to bid more money on the homes they want. For example, when they could afford a $500,000 home with past interest rates, they can now afford $50,000 more. This leads to homes selling for over-asking as people can bid outside of their previous budgets.
Interest rates are bound to increase in the near future, making the urgency to buy now even more apparent. While the inventory remains low before Spring, sellers will continue to reap the benefits of a seller’s market.
For example, if a buyer wants to lock in a low-interest rate, they will need to buy sooner than later. The money a homebuyer saves on interest rates can be put into remodeling a home. As a result, home conditions do not matter, as securing a piece of real estate in a great location is much more critical and long-lasting.
Contact a Real Estate Agent You Can Trust Today
You may feel discouraged by the booming real estate market in California. But it is good news! Whether you are selling or buying, my expertise will maximize your home budget and secure the right home for your family. You can get ahead of the real estate market by texting, calling, or emailing me at (951) 473-0390 or [email protected].