Hot, Normal or Cold Markets … When Should I Buy?
Many people are sitting on the fence trying to decide if now is the time to buy a house. Some are renters who have a strong desire to become homeowners but are unsure if buying right now makes sense. Others may be homeowners who are realizing that their current home no longer fits their changing needs. And even some homeowners (sellers) are hesitate to make the decision to list and sell because they are fearful they will not be able to find “suitable housing” and they are not willing to “settle”.
To determine if you should buy now or wait another year, ask three simple questions:
- Do I think home values will be higher a year from now?
- Do I think mortgage rates will be higher a year from now?
- Do I think this is a Hot, Cold or Normal market?
Hot Market
This is an extremely competitive market and is advantageous to the seller. Sometimes, homes will sell as soon as they are listed or even before homes are listed. Typically, during a hot market, multiple offers will be made on each home and more often than not, homes will sell for more than the asking price. It is even more crucial to be prepared and to be ready as a buyer when the market is hot. It can be easy to get caught up in the bid for a home, but if you are prepared (pre-approved, solid in price range, realistic about your needs), it is easier to remain focused on your housing needs and price range.
Normal Market
In a normal market, there is a fairly large number of homes available and an average number of buyers. This market does not necessarily favor the buyer or the seller. A seller may not have as many offers on their home, but he or she may not be desperate to sell either. Again, it is the buyer’s responsibility to be prepared. During a normal market, the chances to negotiate are higher than in a hot market. As a buyer, you can expect to make offers at lower than the asking price and negotiate a price at least somewhat less than what the sellers are asking.
Cold Market
In a cold market, houses may be listed for more than a year and the prices of houses listed may drop considerably. This market is advantageous to the buyer. As a buyer, you have the time to make an offer that works to your best interest. It is not uncommon to low-ball and to find that sellers are accommodating to meet your needs. Keep in mind that even though this market is a great time for buyers, you do not want to lose your dream home by being unrealistic. Your goal is to get your dream home at the best possible price.
We are experiencing a Hot Market in SE Wisconsin! Buyer’s are finding themselves in competitive bidding situations and Seller’s are on the winning edge of getting the Best Prices Now! So, whether you are a buyer or seller, I am here to assist you with all your real estate needs. Call me today so we can discuss what your next Best Steps will be! (262) 308-3563 or visit my website Website
