What’s going on in today’s market?
The current real estate market in Connecticut is considered by many to be a “correcting” or “adjusting” market. After several years of an unprecedented number of home sales and rapid value appreciations, prices are stabilizing, with some areas adjusting slightly up or down. Mortgage interest rates have slowly started to rise, slowing the market down a bit. However, though a bit higher than in recent years, today’s interest rates are still historically extremely low, still providing cheap money for your home purchase.
This correcting market brings with it an unnecessary air of worry among both buyers and sellers.
Sellers worry that they will not be able to get “their price” for their home. Sellers should keep in mind that they have recently enjoyed unheard of appreciation rates, and sales prices are always related to the market. Homes are sold at market value no matter what the market is currently experiencing. While sellers may no longer expect to sell for much, much more than their neighbor recently sold their home for, they have already earned great appreciation of their home’s value. With interest rates remaining historically low, homeowners will still be able to sell for a reasonable price in this current market. It is definitely more important now for sellers to price their home at or slightly below the market and their competition, and to present their home better than others on the market to generate buyer interest. An overpriced home will most likely languish unsold on the marketplace. Be sure to inquire with your REALTOR® about how to best position your home in the current market to ensure it stands out from and supersedes the competing homes.
Buyers worry that if they buy a home now, it may be worth less next year. Buyers should keep in mind that depreciation of home prices usually correlates with increased mortgage interest rates. Even if a home’s value should dip slightly, chances are that the corresponding higher interest rates will make that home more costly to buy and possibly out of your financial reach. It makes sense for most buyers to purchase now with the low interest rates. Over the long term, housing prices have consistently risen, and your home should be considered your pride and joy, your family’s centerpiece, and a long term investment for your future and your financial well-being. In addition, with the current increase in housing inventory on the market, buyers have more homes to choose from, increasing the likelihood of finding a home that meets most or all of your needs and wants.
Contact Don today for more information about buying or selling a home in today’s market.