Real Estate Market Trends: What You Need to Know

The real estate market is constantly evolving, and if you’ve been keeping an eye on interest rates, you’ve likely noticed the big shift recently. After months of rates hovering in the 7% range, we’re now seeing the market solidly in the 6% range for a 30-year fixed mortgage. So, what does this mean for both buyers and sellers? Let’s dive into the current trends and how you can take advantage of the opportunities!

Interest Rates Have Stabilized – What Now?

Just a few weeks ago, we were flirting with interest rates in the 7% and 8% ranges. Now, we're seeing a trend towards stabilization, with rates sitting in the low 6% range. This has had a significant impact on the market, making home loans more attractive and boosting buyer activity.

Buyers are starting to realize that this is an ideal time to get back into the market. Homes are more affordable than they were just a month ago, and rates are no longer the monster they appeared to be. The shift has happened, and with stability in sight, it’s time to seize the moment.

Buyers Have More Leverage – Inspection & Negotiation Power

One key takeaway from recent market activity is that buyers are now in a stronger position. Gone are the days when buyers waived inspections or skipped negotiating credits. We’re seeing a more balanced market where buyers are asking for things like closing cost credits and negotiating repairs.

In fact, buyers who had shied away from FHA or VA loans are now returning, as sellers become more receptive to various loan types. This normalization is creating a healthier market where both buyers and sellers have options, reducing the pressure of rushed decisions.

Pricing Strategies Are Changing – Here’s What to Do

Sellers at higher price points are making price reductions, which means buyers have the opportunity to secure homes for less than list price. But here’s a tip—don’t leave money on the table! When negotiating, consider asking for a closing cost credit rather than reducing the offer price. For example, if you’re looking at a $736,000 home and planning to offer $725,000, consider offering the full price but ask for $11,000 in closing cost credits. This way, you can cover your costs like attorney fees, and insurance, or even buy down your interest rate.

Inventory is Increasing – More Choices for Buyers

Another positive trend is the increase in available homes. With more inventory coming to the market, buyers can take their time to shop around, and sellers have a better chance of finding their next home after they sell. The frantic "fire drill" of buying a home has lessened, giving both parties more breathing room.

This boost in inventory is especially great for those who sold their homes at peak prices but held off on buying due to uncertainty. Now, with more options, sellers are more likely to find a place to move without the stress of paying to move twice.

Addressing Buyer Anxiety – The Truth About Commission Lawsuits

One topic causing anxiety recently is the impact of the real estate commission lawsuits. While there were concerns about how this would affect the market, the changes are relatively minor. Now, buyer agents must have a signed buyer agency agreement, and commissions are no longer listed in MLS for public view. However, commissions are still very much a part of the transaction. Buyers will continue to have representation, and the paperwork involved hasn’t significantly affected the process.

Real Estate Never Takes a Break – Even During Holidays

A common misconception is that real estate grinds to a halt around Thanksgiving or the Super Bowl. In reality, people are still actively buying homes during the holidays. We’ve seen buyers trudging through snowstorms to view homes, and pre-approvals are still being written during these periods.

If you’re serious about buying or selling, don’t wait for the "perfect" time—because that perfect time is whenever you're ready to make your move!

Highlight: Meet Sarah Leonard, Your Trusted Real Estate Expert

As the voice behind this insightful discussion, Sarah Leonard brings years of experience and a deep understanding of local trends to the table. If you're looking for a trusted guide through this evolving market, Sarah is here to help you navigate your buying or selling journey effectively. Don’t miss out on the opportunity to make informed decisions with her expert guidance!

Contact Sarah Leonard
Phone: 224-239-3966
Email: sarah@sarahleonardsells.com