For years, we’ve been touting the buyer’s market concept to prospective clients, citing everything from high inventory levels to hard-to-pass-up deals on short sales and REOs. But here in the midst of the busy summer season, the tables appear to be turning, with increased home prices and reduced inventory now giving sellers their day in the sun.
With the seasons changing to once again benefit sellers, how do real estate professionals convince prospective buyers that it’s still a great time to buy? By citing some of the very same trends sellers are excited about, and some that might not even be on their radar:
1. Rising Home Prices
Home prices are inching upward at an accelerated rate. And since price is likely the most significant consideration among people deciding whether or not to buy, prospective buyers may initially be put off by this trend. Appeal to their desire for homeownership by bringing to their attention that home values are projected to increase even further moving into next year. By taking the leap now, they may be seizing their best chance to get into a starter home or upsize into something that’s more suitable for their changing needs. Depending on how high prices climb, they may even see an opportunity to build long-term equity.
2. Low Mortgage Rates and Faster Closing Times
Mortgage rates are at the lowest they’ve been in a long time. That fact—along with the trend among mortgage brokers to increase their turn times to give buyers a competitive advantage in a hot market—is great news for buyers hoping to get into a home before prices increase any further, and for sellers looking to sell their properties at the fair market price as quickly as possible. The Mortgage Bankers Association has already projected that mortgage rates will likely inch back up—possibly to a full point—within the next year, creating yet another reason why now is the time for buyers to make their move.