Wait-Buyer AND Seller Market at the SAME TIME? Heres Why-
June 10th, 2021
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How Can It Be??!! You Cant Have Both! ...or can you?
First, what is the definition of a sellers market? There are differing views, but some say when inventory of houses on the market is less than 6 months. Meaning, at the current rate of sales, how much time would the amount of houses take to close that are on the market currently. 6 months! I cant remember a time when Houston had 6 months of inventory on the market.
Also, disclaimer, this is FOR SURE a sellers market. Here are the reasons:
- Inventory Shortage (lowest on record)
- Inventory down to 1.5 months
So, by all accounts, yes this is a sellers market.
BUT
What is making all these buyers come out and buy houses if they know its a sellers market? Well, because it is also a very good time to buy a house as well. Here are those reasons:
- Lowest mortgage interest rate in history
- Housing affordability is surprisingly high
- 2008 financial crisis isnt repeating *see below
- Inventory shortage creating the demand isnt slowing down
*Is this 2008 all over again? NO!
- Lending standards are much more strict
- Foreclosures that hit in 2008/2009 came on the already depressed market making matters worse
- Equity-homeowners are NOT underwater like they were in 2008
- Appreciation-Massive numbers in the last year (10%+)
If you are in the market to make a move with real estate, dont be left on the sidelines. Its an amazing time to own property, and an amazing time to sell as well!
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Disclaimer : The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®