As economic times slowly begin to toughen up, we can see rough waters ahead and a real estate market that will certainly feel the pinch. If you’re on the fence about if now is the time to put your home on the market, let’s look at why you shouldn’t wait to sell your house in Encinitas.
Buyers Are Dwindling
It has taken quite a while for this to happen, but the demand for homes has finally begun to slow down as the cost of living increases. And this is a very good reason why you shouldn’t wait to sell your house in Encinitas.
The real estate market went through some serious ups and downs over the last few years, but high property values and surging demand led the way for a seemingly unstoppable seller’s market. Now that the most motivated buyers have likely purchased their new home or decided to step out of the market, for the time being, the stream of buyers has started to slow substantially. Part of this comes down to uncertainty with our collective economic futures, and will likely result in the current seller’s market shifting in the other direction for a period of time.
Besides changes in demand, the Federal Reserve has raised interest rates for home loans on three separate occasions over the last year. Higher interest rates lead to tightening of mortgage lender requirements for qualifying borrowers. This means fewer buyers will be looking at the market as the number of individuals qualifying and getting approved for mortgages goes down.
Values Are Holding Steady
Despite the overall rather negative economic outlook, buyers are still desperately trying to get their hands on their next home, and that translates to big profits if you’re trying to sell your house in Encinitas.
We have watched as properties continuously sell for well over their asking price as multiple buyers swoop in attempting to snatch up the property quickly. This high competition between aggressive buyers more often than not becomes a bidding war where buyers are constantly doing their best to outdo the other buyers. The simplest way of one-upping the competition during this time has been to throw more money at the property in hopes it wows the sellers, and this remains to be the case.
Cashing in on these extremely motivated buyers is a smart move for any seller even mulling over the idea of selling their home, but you also want to enter the market with a solid understanding of where your property stands in terms of pricing. Before moving forward with putting your home up for sale, take the time to compare the closing prices of homes similar to yours in your area.
A little bit of time invested in knowing the acceptable price range commanded by properties in your neighborhood will only help you out, and it could also provide you with tools to create leverage during negotiations.
Supply Remains Limited
If you’re in the market for a new home, you may be finding that there aren’t many options available. Low inventory levels have been a major issue for buyers over the last few years, and things don’t seem to be improving anytime soon.
This lack of supply can work in your favor if you’re selling your home, as you probably won’t have much competition. However, it’s still important to prepare your home properly before putting it on the market.
With limited supply and high demand, prices are likely to remain strong in the coming months. If you’re thinking of buying or selling a home, now is a good time to do so.
Your Partner to Sell Your House in Encinitas
The market these days is tough, but it doesn’t have to feel impossible to jump into the real estate game with the right team behind you. If you’re looking to sell your house in Encinitas and want an experienced, knowledgeable partner in the process, contact us today at 760-477-4441!