Attention Buyers! This Is Your Light Bulb Moment!!
Still wondering if now is a good time to buy real estate? Stop wondering. Your light bulb moment has arrived.
I’ve been talking for weeks now about how the stars have been aligning to buy real estate with super low interest rates, but another star joined the constellation and this one was a surprise - buyer fatigue.
What Is Buyer Fatigue And How Does It Help?
It is no secret that buyers have been getting beat up in the real estate market in the last year. With low rates and a rediscovered pandemic need for roots and a home, tons of buyers came out and started warring with each other to secure the limited inventory available.
If 10 people bid on a property, nine lost out.
It was exhausting.
And then cabin fever set in and people started traveling in droves.
All of this combined to convince some buyers to drop out of the market. In fact, some very dramatic headlines have gone so far as to say “the market has shifted.”
But will this last? Of course not. As long as rates are low with the very real threat of them going up, smart buyers will jump back in. The edge you have as a buyer right now because other buyers stepped out will only last a minute.
What About That Inventory Problem?
I’ve also seen a lot of chatter about people not wanting to list during the pandemic (including now), but the truth is the volume of listings in most communities is UP. There are just so many buyers snapping up the properties that it feels like there is a seller-induced shortage.
And sellers are starting to understand that this is their time to get top dollar and even more homes are coming on the market. More choices, fewer buyers. Are you seeing what I mean about stars aligning?
Prices Keep Rising. When Is The Crash Coming?
Lots of people got burned in 2008. It was a huge game of musical chairs and many of us were left without a chair when the music stopped. It hurt. A lot.
In fact, in April, Google reported that the search question “when is the market going to crash?” spiked 2450%!! Look at my post on that topic where I explained why there is no crash coming. Fast forward three months and prices have continued to spike sharply, but still a crash is not coming for all the reasons I outlined in May. People with fancier titles than mine agree.
Prices are forecast to keep rising as long as there are lots of buyers. And it is likewise forecast that there will be lots of buyers until interest rates get too expensive.
Let that sink in for a minute. Do you really want to wait while prices keep climbing? Or would you rather jump in and enjoy the equity that builds as the prices keep rising for the next year or two? With no crash coming, the equity you build now is not going to evaporate.
The median price in Manhattan Beach has risen almost $50K/month for at least the last six months. 😮 That’s some really expensive waiting!
Smart money says it’s about two years before buyers step out dramatically due to interest rates. Think you’ll just wait two years? If you do, rates will be much higher and you will have missed the last uncharacteristically high home appreciation spike. Does that sound like the smartest financial play?
What You Need To Do Right Now
If you’re holding back simply because you’re afraid now isn’t the time, please read this post again. If other factors like an imminent job change or lack of savings are holding you back, I still urge you to have a chat with me to talk about how we can work with your situation to get you ready as soon as possible.
Been holding back out of doubt? I hope you see the extra opportunity you have if you jump in right now before the fatigued buyers come back. If this is you, here is your to do list:
Make an appointment with us to talk strategy about your target neighborhood and other needs (like selling an existing home)
Get your financing squared away if you plan on financing your purchase (we have a number of superstar lending partners if you need a recommendation)
Request a custom trendline for your target neighborhood to better understand your negotiation options (text “trendline” to 424.228.9969)
This post is from our “Buyer Edge” series, content designed to give real estate buyers in Silicon Beach an edge in a competitive residential real estate market. Read more about our full Buyer Edge program on our website. Want help buying real estate in Silicon Beach? Contact us, grab time on our calendar or read more Buyer Edge articles. Need help beyond Silicon Beach? Reach out and let us help you find a high-caliber agent with hyperlocal expertise in that area.