The housing market right now reminds me of the beginning of A Tale of Two Cities by Charles Dickens… it was the best of times, it was the worst of times. It depends whether you are buying, selling, or just staying put.
People enter the housing market for two reasons: They either want to sell a house, or they want to buy a house. And of course most people want to do both–sell their present home and buy a new home somewhere else, and some want to do neither–just stay where they are (that’s us!).
The two major trends we’ve been seeing–a shortage of homes for sale, and high interest rates, are still with us, with minimal if any improvement. Houses aren’t coming on the market in large quantities because people with low interest fixed mortgages don’t want to give them up, buildable land is scarce, and lots of people want to live in Worcester County. Mortgage interest rates are down slightly but still historically high.
So if you do have to sell a home, or want to sell a home, it’s a “best of times” to do so because prices are up and climbing. However, if you want to buy a home, the competition for homes is fierce, so prices get bid up, and your mortgage payments will be high. The trick here is to take the long view: the shortage of homes isn’t going to change anytime soon, so if you buy a home now, there’s a very good change it will appreciate in value. And, there’s also a very good chance rates will come down (not to be too cynical, but there is a presidential election coming up), at which point you can refinance. Remember–most of those people currently sitting with 2.75% mortgage rates almost certainly bought at a much higher rate and refinanced (that’s also us!).
Interestingly, there are still more homes coming on the market than might be expected in this climate. Sometimes people just have to move, for a better job or a transfer, but for many people there are valid non-financial reasons they might want to move–a warmer climate, lesser or no estate taxes, or to be nearer the kids and grandkids. And don’t forget about estate sales. These are homes for sale where the property must be sold to split up the estate for the heirs. These come in all shapes, sizes, and conditions, and oftentimes these are very nice homes. Buying a home right now can still be exciting, and maybe even fun, if you work with a realtor you trust and are comfortable with.
I’m in daily conversations with sellers who are in various stages of getting ready to list their homes. Some have to sell to buy, some want to buy first then sell, and their timing comes in a wide range–I’ve worked with some sellers for 2 years of working toward having the house ready (start early if you’re even considering a move–it makes the entire process less daunting, I promise), and the other end of that range is I once had someone walk in to my office, introduce themselves and basically ask for some paperwork so they could hand me the keys because ‘we are moving to Canada next week, forever’. And they did.
It’s never too early to start the conversation and I’m happy to report that I’m working with sellers to have their properties best prepped for sale…in Ashburnham, Ashby, Athol, Princeton, Fitchburg, Gardner, Westminster and Winchendon, to be listed over the next few months. *Including this home with an XL built-in aviary (pictured above).
There will be more inventory, you just need to be ready-ready for it. If you need lender recommendations or any other service professionals (dumpsters, donation ideas, tradespeople, etc.), check out the Recommended Professionals page on my website. And always know that you can contact me for a no-pressure conversation about the current real estate market, to determine if a move is even feasible for you–whatever you need. I’m happy to help in any way I can.