So what’s the scoop? Real Estate is in itself a paradox. It is the ever-changing market with new gadgets and gizmos and yet seemingly constant and steadfast industry that definitely keeps things interesting.
What we know are three big facts. The fed announced an interest rate hike for the first time since 2006; The inventory has somewhat continued to remain scarce therefore allowing prices to continue to rise; And even though rates are going up and inventory is low, buyers are everywhere and so is the availability for them to get credit.
What does this mean to you? Well it depends on which end of the spectrum you fall on. Are you a buyer or a seller? Or are you both?
If you’re a buyer, and you have been one for a little while, you will be familiar with what I am about to tell you. Property here is not cheap and it hasn’t gotten any better, especially for those buyers who are looking for a “deal”. Those deals are hard to come by but does that mean they don’t exist? No. That means it just takes longer to stumble across them. But if you’re lucky and have a good team with you, you will have the ability to navigate through this time and get into something reasonably. It’ is how it is with everything in life; a game of who you know vs. what you know.
Now if you’re a seller, you are in a slightly better position. But if you’re selling, you will most likely need to buy as well. So where you end up benefiting in this market is the premium you are getting now versus waiting it out. That premium pushes you a bit forward in your purchase power by giving you more money for costs and down payments for your next purchase, or better yet money just for cash flow.
Rates are going up. They are unlikely to go down and they will most likely cause some sort of lull soon, even though it has yet to show in the current market. So if you’re a buyer – you should buy sooner than later, and if you’re a seller, you should sell sooner than later. Sense the trend here?
I am not a fortune-teller, I do not have any sixth sense. I speak from experience. I have seen this all before, and yes, while we are better off now than we were 12-15 years ago, we are still likely to go through another downturn in the market and I suspect that it will happen sooner rather than later.
Here’s wishing you and yours a very Happy and successful start to the new year. Until the next time. Here’s your REal Scoop!