“Doom and Gloom” in the housing market – unless you live in a cave that is what the new’s is saying about today’s Fountain Hills real estate market. Thanks to continuing tight credit and sluggish job growth, the United States isn’t likely to see anything like a booming real estate market for many years. But although reports about Fountain Hills real estate market sound grim, the time to buy or sell is when it is right for you! Lets look at some benefits to buying and selling your home in today’s market.
Homeowners vs Investors
The difference between investor and the average home buyer is that investors doesn’t have to buy a property – because they don’t need to live in it. This gives them a lot more flexibility because they are able to buy when real estate prices are down, and sell when they are up. Home buyers don’t have this much flexibility, but what they can take from real estate investors is how they look at the market. Like any good investor, a real estate investor looks at the numbers and decides whether to buy or sell based on the potential to benefit.
Buyer’s Market
A real estatebuyer’s market occurs when there is more property for sale (supply), than there are buyers (demand), forcing prices down. While this type of market is bad news for homeowners who want to sell their homes, it’s great for those entering the real estate market. New home buyers have the opportunity to buy properties at a lower price point. This can be a misconception for some buyers who think time is on their side. Fountain Hills homes in good condition and priced right still sell quickly with multiple offers. In some cases home prices may not rebound for a long time, buyers need to choose their homes carefully and look for areas where homes are truly a good value. Buyers should also weigh the fact that they’ll have to pay to live somewhere, whether they buy or rent – so even a property that maintains its value may provide significant savings over time.
Seller’s Market
A seller’s market is just the opposite of a buyer’s market: low supply and high demand for available properties drive prices up. This was the booming real estate market the United States experienced before the market crashed in 2009. The seller’s market is best for those who are relocating or at least downsizing. Even if the value of your home increases by 100% during time that you own it, this isn’t money in your pocket if you have to buy another house in the same area, as their prices will have all increased at a similar rate. For empty-nesters who are looking to downsize or rent or for those who are making a move to a less-expensive area, the peak of a seller’s market may be the best to sell.
Balanced Market
A balanced market is the best of both worlds. This is where buyers and sellers markets are more equalized. This tends to happen when interest rates are affordable and real estate sales remain stable over a long period of time. More “normal markets” bring in a conservative 3-4% appreciation a year. The mind set is a “home is a place to live” instead of a piggy bank.
If you’re looking for professional advise regarding your Fountain Hills real estate, feel free to contact me at 480 888 6708 or email me. I’ll be happy to assist you and answer any questions you may have.
