If you’re planning to buy or sell a home this year, then there are a number of points you’ll need to keep in mind so you know what it takes to succeed in the current real estate market conditions. So is it a buyer’s market? A seller’s market? Is now a good time to proceed or should you wait? That’s precisely what Southern Connecticut Coldwell Banker Realtor Judy Szablak will explore in today’s article.
Who Has an Edge? Buyers or Sellers?
It’s normal to wonder whether it’s a buyer’s market or a seller’s market. As of April 2017, sellers had a slight edge over buyers, particularly in markets such as New England, the Pacific Northwest and some regions of Southern California. In these regions, there has been a slight decrease in supply, which has resulted in conditions where there is more competition for each property. This is good news for sellers, who are more likely to sell their home quickly, with multiple offers. Buyers tend to be more likely to make higher offers and some may be feeling pressured to accept less favorable terms.
Of course, each market is slightly different. And the seller’s edge is expected to remain fairly modest. But the market has been trending in this direction for a number of months now, so the sooner buyers move, the better their chances of finding the right home at the right price.
Real Estate Supply Has Decreased
This ties into the slight seller’s edge, as there has been a slight decrease in housing supply nationwide. This means it’ll be a bit more challenging to find your dream home. As of March 2017, there were approximately 1.75 million homes listed, according to the National Association of Realtors. This figure reflects a decrease of approximately 6.5 percent over the prior year’s figures.
This dip has been attributed, in large part, to a slow in new home construction. In many regions of the nation, builders are pointing to a lack of build-ready land and an ongoing shortage of qualified construction workers. Of course, in many regions of the nation such as Southern Connecticut, the cold winter months are not conducive to new home construction projects, so the number of new homes locally should gradually begin to increase as temperatures warm.
The real estate supply has gradually decreased over the past couple years. Notably, the number of listings nationwide dipped to the lowest point since the National Association of Realtors began tracking this figure in 1999, although recent weeks have seen quite a bit of recovery, with more new listings coming on the market. That trajectory is expected to continue throughout the spring.
Interest Rates are Increasing
The Federal Reserve recently increased interest rates, and a few interest rate hikes are predicted to take place over the coming months. So from a buyer’s perspective, the sooner you buy, the better! This is especially true for first-time, “entry-level buyers,” as nationwide, the number of “entry-level homes” has decreased by 8.7 percent (compare to a small 1.7 percent decrease in supply amongst luxury homes in the same timeframe.) Therefore, acting quickly will almost certainly mean more affordable options.
Interest rates still do remain relatively low — nowhere near the highs that we saw in the 1980s. But from a financial perspective, just a half a percent can equate to thousands of dollars so it’s best to move as quickly as possible so you can lock in a good rate. Notably, though, these rising interest rates are actually a positive thing from a general perspective as it is a clear indicator that the nation’s economy is improving!
Trust Your Home Sale to a Top Southern Connecticut Realtor
If you think you’re ready to buy a new home or sell your existing home, there’s no better time to do it! In fact, the spring is an ideal time to buy or sell. Southern Connecticut real estate expert and seasoned Realtor Judy Szablak is here to offer guidance, helping you avoid scams while ensuring that you enjoy a prompt, efficient transaction. An agent with Coldwell Banker Residential Brokerage, based in Westport, CT, Judy Szablak has been in the real estate field for decades. She specializes in the purchase and sale of single-family homes, new construction, luxury properties, condominiums and even seasonal or rental homes.
Serving clients since 1984 and recently amongst the top 6% of Coldwell Banker real estate agents worldwide, Realtor Judy Szablak has more than 30 years of experience working in the Southern Connecticut real estate industry. She works with clients in a number of Southern Connecticut communities, including Westport, Trumbull, Weston, Fairfield, Norwalk, Stamford, Easton, Wilton and Rowayton amongst others.
Browse Judy’s property listings to see if your new home is amongst her listings! Or, if you’re ready to sell your Southern Connecticut home, turn to the best. With over three decades of experience selling homes in this area, Judy knows exactly what it takes to ensure a smooth and stress-free home sale. Call Realtor Judy Szablak today at 203.257.5892.