While we’re just getting into the Spring market, due to cooler temperatures, it’s important to be a cheerleader of opportunities for buyers, or sellers.
In this case, we’re still seeing a lack of inventory, and plenty of demand for well-priced properties.
But in many cases, we have a confluence of items which could make for a busy and successful spring for buyers this Spring.
If buyers decide to get off the sidelines.
My video this month is all about Buyer Confidence.
But, in truth, buyers don’t seem to be jumping into the market with the confidence I think they should have.
I can understand some of the reluctance.
We have tax liabilities that many buyers aren’t entirely clear on- in which case they may have high tax exposure at year end 2018.
Mortgage Rates appear to be rising at a rate which is somewhat concerning.
The stock market remains near all-time highs, but those in finance seem to be waiting for the party music to stop.
I don’t seem to be painting the brightest picture of the market, but here are the realities:
- Many of the down arrows in the Q1 market report are affected by lack of New Development sales.
- Many condo sellers are accepting much lower bids than buyers realize.
I’m seeing it all over town.
- New Development sales have stalled in all but a few projects, and buyers are taking advantage of price chops and flexible sellers.
- Banks are lending actively and rates are still very low, still 1/3 lower than they were in 2006.
- More inventory is coming on in pockets across neighborhoods
- Any coop inventory that needs work is being repriced constantly if it’s been on the market for longer than 3 months.
- Large Coops on the East Side continue to be offered at such reasonable levels- it’s surprising and exciting!
This is just a snapshot.
Buyers would be wise to work with an agent and start doing price discovery.
Not to get greedy, mind you, considering that pricing has come down significantly already, in many cases.
But to gain confidence that qualified buyers are not a dime a dozen right now- it remains a shallow buyer pool, and buyers in the market right now are taken seriously by sellers.
Buyers are still stretching for much of the property on the market, and rates certainly impacting their thought process.
But at the same time, this moment in time where buyers can be so empowered may not last forever.
And if rates continue to tick up, prices rare move in direct correlation to that.
There are lots of reasons for buyers to have confidence- and if the opportunity of the right property comes along, it could be a great time to jump.