Anyone that has been in the market for a new home, or just has an interest in the real estate industry, knows that it has been nothing other than a seller’s market. Over the last few years, buyer frustration has been at an all-time high, while sellers have enjoyed the high-priced trend. Across the country, home values have continued to increase at an above-average rate, while the available inventory has been lacking, at best. This demand for homes has successfully allowed sellers to raise their asking prices, and the competition has pushed buyers to make offers that are considerably over the listing price, often finding themselves in a bidding war with other prospective buyers. But what do we have in store for the upcoming spring?
The consensus amongst real estate professionals is that the spring of 2019 will bring a normalization to the market. What does this mean, and how will it affect you as the buyer or seller? First and foremost, it would mean that buyers would start to experience an easier time negotiating prices. The inventory is believed to start increasing as house prices remain high and buyers are getting discouraged with the availability and pricing. Interest rates are increasing, new development is increasing, and in turn, the prediction is that home price increases will be smaller than we have seen in recent years. Considering sellers have had the upper hand and have been walking away with higher than normal profits for their homes, many people with houses on the market are a bit reluctant to lower their asking price. They know what the market trend has been and still have hope to capitalize on that.
Although we are still technically experiencing a seller’s market, the spring will not only bring a change of season, but will likely bring a welcome change to the real estate climate as well. Sellers will begin to realize they can no longer name a higher than average asking price and expect to get it, especially with the increase in interest rates, instead having to drop their asking price in order to compete and close the deal, while still being able to walk away with a healthy profit.