The COVID-19 pandemic has changed the world in a number of profound ways. One way the pandemic has impacted the real estate market has been the Federal Government’s decision to reduce mortgage interest rates.

The real estate industry is doing exceptionally well right now, but the market may change in the not too distant future…

We’re in a Seller’s Market

We’re in what many would consider a “Seller’s Market”. This means the real estate market right now favors sellers more than buyers. When sellers control the market, it means that prices are usually higher than they probably should be. A seller’s market occurs when there’s high demand but very low inventory/homes available to be purchased. In a number of markets throughout the United States, there is very little inventory available, and when homes go on the market, they’re usually bought very quickly because the number of people looking to buy is high.

We might be headed towards a Buyer’s Market

A Buyer’s Market is the complete opposite of a seller’s market. A buyer’s market essentially means that there is more inventory available than buyers who are looking to buy. This can happen if there’s an economic downturn (which might happen as a result of the pandemic). When a downturn happens, home purchasing goes down and foreclosures can go up. When foreclosures go up, it means that home prices go down, and when home prices go down and foreclosures go up, it becomes a better time for first-time buyers to get a home.

What should you do in this Real Estate Market?

It all depends on your particular situation. If you own a home but you’re thinking about selling and moving to a more affordable home, you might want to consider selling. On the other hand, if you’re extremely anxious to purchase a home because you’re afraid that interest rates will go up next year, then you might want to consider buying now. If you are seriously thinking about making a move this year, please contact me first. I can help you with your home buying and home selling decision.

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