Do you feel like you’re always hearing that it’s the “perfect time to buy!” AND the “perfect time to sell!”? Do you wonder how that can be the case? I bet you have, informed real estate consumer! And you’re right–it is not always the best time to buy or sell.
Realtors will sometimes use this verbiage because they want your business now, regardless of whether it is a great time for you to buy or sell real estate. Let’s set the record straight.
A great way to put your finger on the pulse of your real estate market is by reading a complete market update. A quicker way is to use a reputable market index. I like the Altos Research Market Action Index. When this index is less than 30, the buyers have the advantage in the market. When it is above 30, the sellers have the advantage. This index is based on the current rate of sales versus the current inventory. That being said, there are many factors that this index does not take into account. For example, home prices and interest rates will likely continue to rise-making now a better time to buy than it may be in a year or two!
Finally, you should take into account your personal factors. Do you need to upsize or downsize? Do you need a separate living area for your mother-in-law who is moving in? Have you finally gotten that down payment saved up? As you can see, there are many factors at play when determining “when to buy.” Stay informed about the real estate market and honestly consider your personal situation. An honest real estate agent will help you consider all of the factors and determine when it is a great time to buy or sell.