The crystal ball on my desk is gathering dust these days as the market is so brisk that I haven’t had the time or need to peer into it with, or on behalf of, a customer.
Granted, it isn’t always accurate. If it was then the way I saw it my Seahawks would have played in the recent Super Bowl. Regardless, it does provide a means to focus one’s thinking on a particular topic.
In markets such as we are currently experiencing both buyers and sellers often find themselves in a quandary about whether to act. Sellers wonder if the market will hold or go higher. They also ponder where they would go if they sold now and aren’t leaving the area. Buyers wonder if the market will slow, or, even better for them, start to decline in values.
There are contributing factors that we can look at, but without a shiny crystal ball one doesn’t really know how they will play out. Interest rates are a huge contributing factor right now.
Tenants can buy a home and pay about the same in a house payment as they are currently paying in rent, sometimes with little or nothing down. Sellers can get a higher price with lower rates since the low rates allow a borrower/buyer to borrow more for the same payment.
We have high buyer demand right now in the region because of the migration from California. They seem to continue to get their homes sold and make their way here. Many are buying now without selling their current home just to get a foothold in the area where they ultimately want to live, Northern Nevada. How long this will continue is an unknown variable, but there is no let up on the many contributing factors that are causing them displeasure in their current environment and driving their need to relocate. It could go an awhile.
COVID 19 was anticipated to negatively affect home sales but it reality it has had the opposite affect. People have a lot of time to think, plan, and act on their real estate scenarios. With so much free time to browse the real estate websites they are very familiar with the markets and up on every nuanced move that occurs.
The continuation and/or abatement of COVID shouldn’t affect us too much other than to allow transaction work to proceed a lot easier.
There is a scarcity of inventory in all Northern Nevada markets right now. When properties hit the market they often get multiple offers some of which creep over the asking price. This may change with the spring listing season but don’t count on it. If it does, the added competition may lessen the “fish feeding frenzy” buying behavior, but be clear – there are many buyers waiting for sellers to list their homes so the demand may not be substantially lessened.
When the rates will adjust, when the California exodus will diminish, and adjustments to the many other variables that contribute to a market, are all unknown. If you have the desire to buy or sell, make your plan and work your plan. Establish your wants and needs so you have a clear understanding of what kind of property, or terms of a sale for sellers, will work for you.
With a clear vision you will be less apt to jump into the buying frenzy and compromising your needs. It is, after all, your needs that are most important to your ultimate enjoyment of the property. If your needs are met then the more wants you can add allows you to adjust your pricing. This goes for buyers and sellers. Your agent can help you with perspective along the way.
Don’t wait for the market to change and come to you. Coordinate with your agent to strengthen your position as best you can given your circumstances and assets and be ready to compete. Somebody has to win the competition to buy or sell homes in this market, it might as well be you.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Realty Affiliates, 775-781-3704. firstname.lastname@example.org