There has been a lot of buzz about the current state of the real estate market, and depending on where you look, the information you come across may vary. One common question we often hear is, “Should I sell my house now or should I wait?” Well, the good news is that we are currently in a robust seller’s market, which is great news for homeowners.
Many homeowners who locked in low-interest rates and don’t have an urgent need to move are choosing to stay put. While this has created a shortage of available homes in Southern California, it’s essential to note that this situation is unique to our region. In contrast, areas like Colorado Springs have experienced a 30% increase in transactions in 2023 compared to 2022. Similarly, states like Florida and Texas, attracting a significant influx of buyers, are experiencing market conditions reminiscent of 2021. So, the bottom line is, it’s still a fantastic time to sell your home.
Another common question we hear is, “Should I buy a home now, or should I wait for prices and interest rates to change?” Currently, we find ourselves in a balanced market where home prices are neither skyrocketing nor plummeting. If interest rates were to decrease, it would likely result in an uptick in real estate prices. Conversely, any price decrease would likely coincide with rising interest rates or increased unemployment rates. Unlike the situation in 2007, there are no indicators suggesting massive price drops are on the horizon. Most homeowners today have substantial equity compared to historical standards. Even if prices were to decrease by 20% (which is highly unlikely), homeowners would still have a solid equity position. Furthermore, foreclosures are almost non-existent in the current market.
Historically, home prices tend to rise over time, while interest rates fluctuate. Buyers entering the market now understand this dynamic and are not deterred by slightly higher interest rates. The quarterly reports on property values show a consistent upward trend, even in the face of the highest interest rates we’ve seen in 23 years. While you can’t turn back time to capture prices from five years ago, if interest rates do come down (as many experts predict), you can always refinance to secure a lower rate. And if rates continue to rise, you’ll be glad you purchased your home when you did.
Ultimately, the decision you make should align with your unique circumstances and goals. If your dream is to pursue a better quality of life in a new city, don’t let market conditions hold you back. Live your dream today. On the other hand, if staying put, saving money, and navigating this market is your strategy, then go for it! Remember, prices will naturally fluctuate, but time is something we can’t recover. Our clients who’ve taken big steps, like moving to a new city, have never looked back with regret. They often wish they had made the change sooner! Whatever path you choose, please know that we are here to support you and ensure your happiness and fulfillment in your life journey.
Chris Murray
RE/MAX Empire Properties
951-487-7007