Timing Is Everything?
Let me preface this by saying, time is everything…but, there’s only so much control we have, right? No one could have predicted the pandemic and how that would affect the country, the economy, mental health, and real estate – or what has happened since. I can also say that we have been through harder times, and we have learned to adjust and pivot as needed. Real estate is always going to be a strong way to invest in your future. Sometimes there is a time and place to rent, because that makes the most sense for your short-term situation. Most of the time, owning real estate is going to be a better choice for your financial investment.
But how do you know when to buy – or when to sell? Sometimes you don’t have a choice because of life circumstances. Sometimes you do. The real estate market in Central Texas can be tricky, but it doesn’t have to be stressful. Working with a local and knowledgeable Realtor in your specific area will be the best guide in your real estate decision making – especially in this currently shifting market.
Right now, interest rates are higher than they have been in a while. Buyers are hesitant to buy without a need or without some incentives from the seller. We also have more inventory than we have had in a while. All of this shifts us to more of a buyer market. But what happens if and when the rates dip? We don’t have a crystal ball, unfortunately, but we do have experts that study the trends, patterns and the real estate market to keep us updated and informed. In the meantime, here’s a simple guide to help you figure out the best times to sell or buy a home in this area.
Understanding the Current Market
Market Trends:
Home Prices: Keep an eye on the average home prices. If prices are rising, it’s usually a good time to sell. If they’re falling, it might be a better time to buy.
Inventory Levels: When there aren’t many homes for sale, it’s a seller’s market. When there are lots of homes, it’s a buyer’s market.
Days on Market (DOM): If homes are selling quickly, it’s good for sellers. If they’re sitting on the market for a while, buyers have the upper hand.
Seasonal Patterns:
Spring and Summer: These seasons are the busiest for real estate. Families prefer moving during school breaks, and the weather is great for house hunting.
Fall and Winter: These seasons are usually quieter. There are fewer listings, which can mean better deals for buyers. Plus, the serious buyers are often more motivated.
When to Sell
High Demand Periods:
Selling in spring and summer can attract more buyers and potentially lead to multiple offers.
Market Conditions:
If you notice prices going up and there aren’t many homes for sale, it’s a great time to sell.
Personal Readiness:
Make sure you’re ready for the move. Selling a home involves some prep work, like making repairs and staging your home for potential buyers.
When to Buy
Buyer’s Market Signs:
Look for increased inventory and longer DOM. These signs mean you’ll have more choices and negotiating power.
Interest Rates:
Keep an eye on mortgage rates. Lower rates mean your monthly payments will be more affordable.
Off-Season Opportunities:
Consider buying in the fall or winter. You’ll face less competition and sellers may be more open to negotiating.
Tips for Both Buyers and Sellers
Work with a Local Real Estate Agent:
An experienced agent can offer valuable insights and help you navigate the market.
Stay Informed:
Regularly check market reports and forecasts. Your local real estate sites or agents can provide useful data.
Financial Preparedness:
Make sure your finances are in order. Sellers should calculate potential profits and moving costs, while buyers need to secure financing and know their budget.
Timing the market isn’t easy, but by staying informed and understanding local trends, you can make smarter decisions. Whether you’re looking to sell your home or buy a new one in Central Texas, being prepared will help you achieve your real estate goals.
