What to Expect in this Shifting Real Estate Market

After almost 2 years of a red-hot real estate market, many would agree the market is shifting and "slowing down." What might this mean for current home buyers and sellers? Let's dig in...

Sellers

If you're planning to sell your home during this current market shift, you might currently feel as though you've "missed the boat." This isn't the case. While home prices are expected to decrease with the rising interest rates, there are still a lot of homebuyers who need to find somewhere to live. 

You might not experience the insane bidding wars that many homesellers navigated throughout 2020 until 2022, but you are still going to benefit from selling your home now. With interest rates on the rise, homeowners who didn't have a need to sell will consider staying put. This means that there will still be less competition between other homes for sale on the market. 

As interest rates rise, more homebuyers will leave the market. It's a great idea to list your home sooner than later. You will also have more options for finding the home you plan to move into after selling. There's no telling when the market will shift back into a seller's market, and compared to prior market shifts... the market is still really hot!

Buyers

You may feel a bit uneasy as a buyer shopping the market right now with rising interest rates, along with all of the other unpredictable factors. That being said, the current interest rates are much lower than we've seen throughout history. Although, it is reasonable to feel intimidated by current rates at an average of about 5% when making a comparison to rates we've seen throughout 2020 and 2021. 

This market shift brings great benefits for you, as a buyer. Many buyers are leaving the market due to rising interest rates. This means less competition and a better chance to negotiate.

And while the demand for homes is still high, you will find yourself in a much more advantageous position as a buyer now versus... well, any other time in the past 2 years! 

Additionally, you can expect to see more and more price reductions and affordable home pricing compared to recent years.

And while experts do expect the interest rates to come back down eventually (but not before rising some more), that doesn't make the right move to wait. There is really no saying when that will happen, and you always have the option to refinance in the future.

So, what's the right move for buyers and sellers in the shifting market? Don't wait. If you have a current need (or strong desire) to buy or sell your home, waiting won't necessarily put you in a better position. There are great benefits to both sides in this - still hot - real estate market! If you're still on the fence, give us a call to discuss your options and a gameplan at 856-264-8671 or e-mail us at Scott@zhomesrealestate.com.