It’s becoming a Home Buyers Market
Over the past few years, we have seen a gradual increase in home prices, which is an obvious indication of a seller's market. Lately, sellers have basically been able to name their price and get it; however, times are changing.
There are a number of reasons why we are becoming a homebuyer's market.
The Stock Market: There is a lot of volatility in the stock market that is leading to uncertainty. With all of the ups and downs, people just aren’t sure as to whether this is a good time to invest or not. This leads to uncertainty in the economy.
Canadians are Pulling out: For our northern friends, they are seeing their currency value against the dollar, which means that if they pull their investments out now they will get a higher return in Canadian currency than they would have in previous months.
Election Time: No matter what people say, an election has a huge impact on the housing market. Many people are unsure of how the political polls will swing and so they are uncertain as to whether they should be purchasing up large amounts of properties or not.
Now, these elements all take their toll on the housing market; however, in my opinion, the largest factor is the simple economic principle of supply and demand.
Over the course of the past few years, we have seen a 10-20% increase in home values. Primarily due to the lack of supply homes in the area.
Builders and Sellers have now reached a point where the supply is equalizing and in some cases outweighing the demand for properties and so home prices will have to adjust to the lack of demand.
It is a great economy for homebuyers when the inventory outweighs demand for new homes. This means that sellers will have to become more competitive in their pricing.
Every day we are seeing home sellers lower their price to meet the demand of the market. This is becoming a perfect atmosphere for a homebuyer's market.
In addition, interest rates are competitive for new and multiple homebuyers to acquire a great rate.
For more information on purchasing your home in this home buyers market, contact us today at 239.825.6161.