Hourglass in the sky, representing waiting in a competitive real estate market

The Market is Too Competitive. Should I Wait to Move?

It’s true that we’re in a very hectic real estate market right now. There aren’t enough houses for sale. Meanwhile, buyer demand continues to soar because of low mortgage interest rates and other factors stemming from the crazy COVID-19 economy.

Because the market is so competitive, many buyers and sellers are choosing to wait it out. They don’t want to deal with such a fast-paced real estate experience. This begs a serious question:

Are you missing out on a huge opportunity by sitting on the sidelines?

Let’s take a look at it from both sides of the coin (home buyers and home sellers):

Should I Wait to Buy a Home?

It’s easy to understand why you might want to wait until the market is less competitive. It seems like every house on the market is getting multiple offers and it’s hard to even get your foot in the door—literally and figuratively. If it is going to cost you more than you can afford to get in a house right now, then maybe it does make sense to wait.

If you are in a good financial position, however, you should want to take advantage of the current market conditions. Yes, the home values are high and you may find yourself up against other aggressive buyers. And yes, you have to be very prepared and ready to act quickly. But no, it is not a bad time to buy at all.

It may be smart to take advantage of lower mortgage rates while they are available. Favorable interest rates give you more buying power. They are likely to continue going up as the year progresses. Another factor to consider is inflation. Economists are expecting the inflation rate to be historically high by the end of the year as the economy recovers from the pandemic. You can read our most recent blog article about inflation to learn more (click here), but inflation essentially means your money won’t be worth as much. As a home buyer, this means you lose buying power. Houses will still be expensive and home values may continue to go up while the value of the dollar goes down.

So, if the situation is good for you to make your move soon, you shouldn’t wait too long. There may be a less-competitive and less-hectic market down the road, but you may find yourself in a position where buying a home is less feasible than it is right now.

The important thing is to be prepared. Talk with a real estate agent. Talk with your mortgage lender. Have all your ducks in a row—mentally, physically, financially—so that you can make smart home buying decisions in a short amount of time.

Should I Wait to Sell My Home?

Now, we can look at the other side of the table. Clearly, many home sellers are also waiting for the market to calm down. That is one of many reasons why inventory is so low. Sellers know that they can get top dollar for their homes and sell extremely quickly in today’s seller’s market. However, they are still holding out.

Inflation will also definitely impact homeowners and home sellers. Home values may continue to rise with inflation. However, there may be less buyers on the market. This brings demand down and could make houses a little harder to sell in the not-too-distant future. The real estate market has a way of self-correcting. What is a seller’s market in 2021 may end up being a buyer’s market in 2022. You never know for sure!

Another thing to consider as a home seller is where you are moving. If you sell your house now, you are also likely becoming a home buyer at the same time. This is another reason why many sellers are hesitating because they know they will go straight from the advantages of being a home seller in a seller’s market to the disadvantages of being a home buyer.

For the reasons we stated above in the buyer’s section, it may not be prudent to wait it out too long. You could find yourself in a situation where it’s harder to sell your property while also not having as much buying power on the other end.

Again, it comes down to preparation. Homeowners should understand the current market and economic factors like inflation. If you are smart about planning your home sale and your home purchase, you’ll be able to make the most of the current market conditions.

Get Your Moving Plan Ready

If you are thinking about buying or selling a home in Southeastern Pennsylvania or Northern Delaware this year, it’s time to start planning and preparing for a successful move. Contact The Cyr Team today to get started.

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