Whether you’re interested in buying or selling, if you have been looking at the trends of the current real estate market, you may have some questions about what is going on and what you can expect in the near future. Sky-rocketing prices, abysmal inventory, and interest rates are all causing the home buying process to become more difficult – so is it a seller’s market? Well technically, yes but the answer is a bit more complex than that. Read on to learn more about what to make of the current real estate market.
If you’re interested in buying or selling a home in Indiana, contact the Central Indiana real estate agents at CENTURY 21 Scheetz to learn more.
FIRST - we need to take a look at some of the current events taking place in the market before determining what to make of them. In the second-half of 2022, inventory started to slowly rise, which many thought would help balance the market. This increase in inventory has allowed for more sales to close, a statistic that is predicted to grow. However, prices also continued to rise which has led to a roughly $600 increase in monthly payments on a mortgage. Current inflation has also caused interest rates to begin to climb. While these statistics may seem daunting (depending on if you’re looking to buy or sell), these could be signs that the market is, in fact, beginning to balance.
With inventory low, it is no secret that your home can sell for more than you ever could have imagined. However, there is a little more to it than that. With such high demand, sellers are now receiving tons of offers on their home once they list it. One issue that sellers face in the current market is the potential for deals to fall through; either through lack of funding or poor communication, these bad deals can jam up a seller's time and prohibit them from closing. This means that now more than ever, it is important to work with an experienced real estate agent who can help navigate you through the process. A qualified real estate agent will assist you in crafting the best offer for your home that will lead to closing and an actual sale. Don’t just work with anybody, though – shop around and work with the experts.
As a buyer, you may feel hesitant to buy in such a hot market but truthfully, the market isn’t the only determining factor when it comes to deciding whether or not to buy a home. Home-prices have continued to rise but so has inventory, which has given buyers a much-needed set of options. These options will allow for homebuyers to have a higher chance of finding a home that fits their needs and their budget, which will likely subside some of the demand.
What To Do Before Buying a Home in 2022:
Set a budget and stick to it.
With a rise in home prices, it’s important to make sure that you buy a home that you are able to afford.
Don’t allow the low inventory to make you panic and buy a house that you will regret. You’ll find the right home, just be patient.
Analyze your financial situation.
Thoroughly evaluate your finances and make sure that buying a home is the right decision for you. Take into consideration any debt or savings you may have as well as your income (and what that might look like in the next 3-5 years).
If you would like to learn more about buying and selling in the current real estate market, contact the Central Indiana real estate agents at CENTURY 21 Scheetz today.