Real estate markets are known for their cyclical nature, with dynamics that can shift significantly over time. What was once a seller’s market can quickly transform into a buyer’s market, and vice versa.
For those considering buying or selling property, it’s crucial to look beyond broad headlines about national trends. The reality is that real estate is inherently local, with each neighborhood having its own unique performance indicators for sales volume and pricing.
Market inventory levels can fluctuate widely over time. While there may be periods of increased listings, it’s important to consider these numbers in a broader historical context. Often, what seems like a significant change may still be far from long-term averages.
If you’re in the market for a new property, changing dynamics present an excellent opportunity to reassess your strategy. It’s a chance to consider how shifting trends might align with your long-term goals.
As an experienced agent, I appreciate buying a home is an individualized decision. So, here are a handful of tips for you as you watch the property market revert to more typical behavior.
Are you confident?
Double down on your motivation for moving or buying your first property. You should be confident this is the right decision to achieve your wealth goals and lifestyle ambitions, and that you are 100% committed to meeting the costs.
Check your lender
Reassess your prospective lender. It won’t do any harm. With the increased mortgage rates, many people are shopping around. Lenders are keen to win new business. Perhaps you’ll find a better deal.
Monthly impact
Break down your likely mortgage costs now that rates have edged higher. Think of your payments in monthly increments to assess the impact. Remember, you’ll likely pay slightly less for your target property. So what you lose on the swings, you’ll gain on the roundabout.
Competitive offers
Make a plan with your agent that covers the process of making a competitive offer. Sellers are not desperate right now, and if you make an offer that’s too low you’ll end at the back of the queue.
Savings Plan
If the rate rises have put your first or next property out of reach for the moment, seek some financial advice to help you create a savings program to get back on the property ladder as soon as possible.