Is It the Right Time to Make a Move?

Here’s what homebuyers and sellers should be paying attention to.

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A lot of people have been asking me if it’s the right time to buy or sell a home. Inventory has jumped up a little bit, and we’re seeing interest rates slowly starting to rise. They may go up to 3.5% before the year’s end.

Inflation is also a major factor to consider if you’re thinking about buying or selling. Many feel that the home price growth we have right now is unsustainable and that it’s only a matter of time before we come back down to earth. When it comes to predicting the market, I like to defer to economists like Lawrence Yun of the NAR for their projections. Across the board, top economists like Yun predict that 2022 will be another strong year for real estate.

Home prices have stayed flat over the last month.

Why is that? First, the working world has completely changed. It’s not going to go back to the way it was. More people have more freedom to live and work wherever they please. That’s keeping demand up.

Inflation plays a role here as well. If it goes up, the value of your money goes down. That’s why we’re seeing big hedge funds and institutional investors buy massive amounts of real estate and hold them for the long term. We currently have 1.2 months of inventory, and six months is considered balanced, so there's a lot of wiggle room. Even if inventory floods the market, investors are going to continue to keep buying up homes.

What does this mean for you? If you’re thinking about buying, it’s still a fantastic time to do so while rates are low. Prices stayed flat over the last month as well. When prices and rates start to go up, you’re going to have to pay more for a home.

If you’re looking to sell, we’re still in a fantastic market. Talk to us about our list first strategy or any of the other strategies we use to help sellers get into their next homes while still maximizing their sale prices on the market. If you have any questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

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