Trends: What today’s real estate trends mean for sellers and buyers?
Congrats! You’ve made it to the final part of our housing market trends guide. By now, you know what historical factors have impacted today’s market activity as well as those experts expect to see in the future.
But what does that mean when you’re ready to buy or sell?
What do today’s real estate trends mean for home sellers?
More expensive markets may see less competition from buyers, but demand is still strong.
The bidding wars and rapid price gains of previous years are slowing, but sellers can still expect strong demand. Demand is being driven by low supply across the country and more millennials buying homes. Realtor.com expects Millennials to be the largest segment of buyers this year, accounting for 45 percent of mortgages.
Look at the average Days on Market (DOM) in your area to gauge the “temperature” of your market.
A good way to understand if your market is “slowing” is to look at the average Days On Market — the amount of days a home is actively listed on the market. If similar homes in your neighborhood are taking longer to sell, that could signal lower demand. The longer your home sits on the market, the more time, effort, and costs you’ll endure. Use our selling cost calculator to estimate the total cost of selling and the money you’ll take home after the sale.
In slower markets, sellers may need to be careful about how they price homes and which offers they accept.
As rates rise, there can be higher demand for homes that are less expensive. Overpricing risks not finding a buyer or seeing longer Days on Market. If you’re pricing your home, consider using our home value tool to estimate your home’s market value. Keep in mind, the highest offer isn’t always the offer that’s most likely to make it to close. Our article on how to choose the best offer breaks down the process and how to make the right tradeoffs.
What do today’s real estate trends mean for home buyers?
Buyers have more options, but don’t expect major discounts.
The number of homes for sale ticked upwards in 2018, which is good news for buyers looking for more options and better value. However, the majority of that new inventory is priced at the mid-to-high end of the market, according to NAR. Buyers shouldn’t expect major price drops as home prices are still increasing in many cities, although at a slower rate.
First-time home buyers may continue to struggle with affordability.
While more first-time home buyers are entering the market, rising home prices and mortgage rates won’t make it easy. Check out our guide on determining how much home you can afford. If you’re just getting started, our checklist for first-time home buyers highlights how to prepare.
Smaller cities are growing and creating more opportunity for buyers.
As larger cities have become less affordable, it’s led to faster job growth in midsize and smaller cities, according to Forbes. Buyers feeling the pressure of high prices, may have more success expanding their search to smaller, yet faster-growing cities.
Anxious about the market? We can help. Find out how we’re changing the way you buy and sell a home in any market conditions here.
