Today we discuss #2 Buyers. (Please review Part 1 for the precursor & Part 3 for the continuation of this series…)
Buyers have been getting the short end of the stick here in the Bay Area for quite a while. Inventory has been tight, prices have been rising so fast it’s been hard to keep up, and interest rates started rising- a breeding ground for a seller’s market. Well, it’s 2019 now, and homes are sitting on the market longer (a bit) increasing the inventory. Interest rates have slowly started to stabilize and the way it looks, they should stay steady through the end of the year. Prices aren’t climbing quite so fast now and it’s starting to look much more attractive to buyers! So… why all the trepidation getting into the market buyers? Many are claiming the process seems too grueling, hearing horror stories of years past when the seller’s market was at it’s peak and the only way to get a house was to throw everything you had at it. Those days aren’t the days we live in now. Yes, there are diamond in the rough houses that still exist, pulling in well over asking and selling in less than a week, but rest assured that’s no longer the norm. On the other hand, some buyers are worried that the market is on its way down at a rapid pace (this is not the case & we don’t understand…) and that if they buy now they are going to see the value of the home fall before they’ve finished unpacking. Below I’ve attached the data of our local market and while you can’t argue with facts, people do.
One final reason buyers are apprehensive about jumping into the market is taxes. It could adversely affect some while drastically helping others. We just don’t know yet what’s going to come of these complex new tax policies. How will these new tax laws affect me? A rational question that remains unanswered and is causing buyers to be unsure of making a huge financial investment right now.
(Please review Part 1 for the precursor & Part 3 for the continuation of this series…)