Signs The Market Is Good For Buyers
Buying
Knowing when to start your home search can be tricky, especially if you’re hoping to strike that perfect balance between affordability, location, amenities, and speed of closing. Looking for a sign that it’s the right time to buy? We’ve got you covered. Keep scrolling to discover the top indicators of a market that’s favorable for buyers today!
Houses Take Longer To Sell
The time that passes from the day a home is listed for sale to the day a seller accepts an offer is an excellent indicator of demand. Fittingly, when demand is weakening, houses in a market will sell less quickly than they were selling a year ago. Demand can be measured by days on-site, the time that’s passed since the home was listed on a website like Homes.com or days on market, the number of days since the home was published on the local multiple listing service.
To express the effect of demand on the domestic supply of homes for sale in a particular market, some economists prefer months’ supply: the number of months that it would take to deplete the local inventory of homes for sale at the current rate.
Looking to buy a home in the DC area? Explore these blog posts for helpful advice!
- How Many Homes Should I Tour Before Submitting an Offer?
- How to Buy a Home with No Money Down
- Reasons Why Working with a Realtor® is Worth Every Penny
Slow Sale Periods
As you might have guessed, home sales quickly reflect any evolution in supply and demand. When sales decline from levels of a year ago over a period of several months, it’s a harbinger of either falling demand or low levels of inventory. Demand may fall for one or more reasons — ranging from consumer confidence in the economy, changes in mortgage rates, or price increases that exceed what local buyers can actually afford.
Lower Interest Rates
This just in: Lower mortgage interest rates can make homeownership more affordable. We advise all buyers we work with to keep an eye on interest rate trends, and consider making moves when rates are relatively low! However, we advise starting your home search before experiencing a significant drop in rates. This proactive approach ensures better preparedness compared to buyers who join the market during a sudden rate drop, which often results in a frenzied competition.
High Inventory Of Homes
High inventory is a key indicator of a buyer’s market in real estate because it signifies an abundance of available properties relative to the number of potential buyers. In a buyer’s market, supply exceeds demand, and this dynamic tends to favor buyers — from the increased number of choices at their disposal to the downward pressure on prices.
Searching for the perfect DC home in the perfect DC neighborhood? Check out these blogs next.
Sellers Are Offering Incentives
Have you been noticing that more sellers out there are offering incentives, whether it’s contributing to buyers’ closing costs, rate buydowns or accepting more contingencies than in the past? Sellers going above and beyond to appeal to buyers is a sure-fire sign that the market is shifting.
Price Appreciation Slows
Price appreciation refers to the increase in the value of a property over time. This growth can result from various market conditions, economic influences, and external factors that affect the desirability and demand for real estate in a particular region. Price appreciation is a key indicator of the potential return on investment for homeowners and investors, making it an essential metric to monitor and understand. In a buyer’s market, price appreciation typically slows down or may even drop as sellers face increased competition and buyers take back their negotiating power.
All other factors aside, at the end of the day, the best time to buy is when you’re emotionally and financially prepared. Ready to talk it through with an experienced team of agents? We’ll be there every step of the way.
Ready to make moves? Get in touch with our team today to beat the spring market rush! Give us a call at 202.280.2060 or email us directly at jsmira@jennsmira.com.
