Everybody Wins!

This is a rare moment in time. Throughout the history of the US Real Estate Market there have been mainly two distinct types of market. Then, during the recession that began in 2007 a third type of market was born:

 


  • Buyer's Market
  • Seller's Market
  • Very Poor Market

 

A buyer's market exists when housing prices are "soft" and lending is easy. This means that home prices are lower than they could be, interest rates are down and lenders are looking for buyers. In this market the seller who holds out for a certain price has little chance of getting it – there are just too many homes on the market that a buyer can choose instead.

In a seller's market inventory is down. Each house sells quickly with multiple offers and often for a good bit more than the seller asked for. The buyer who really wants to get in to home ownership will need excellent credit and a willingness to negotiate aggressively to beat out other buyers.

After the housing market started to slide in 2007 foreclosures and short sales started to come on the market. But banks were cautious about lending and tightened their standards. Borrowers who once could have qualified for a mortgage found themselves declined. As housing values slipped, sellers found themselves owing more on their mortgage than their house was now worth. Interest rates went down but no one could qualify for the loan so it did not help.

Now we have a fourth type of market that is very rare. We call it the "Everybody Wins" market. How could that happen? Mostly through market correction. As home values have held steady, banks have become more willing to loan. As homes have sold, inventory has decreased. As a result of having less inventory on the market, home prices are steadily coming back up. Sellers can afford to sell their homes. Buyers can qualify for a mortgage and buy a home they don't have to bid frantically on. Lenders are loaning on homes that are holding their value.

What else do you need in a market like this? A good broker! Come to RE/MAX Flagstaff and see what a wonderful experience you will have selling or buying your home. Experience, professionalism, caring, and education come together to take you through the process to a successful outcome!

 

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Thursday, 14 November 2019

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