Brave New (Real Esate) World

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blog-author-clayjeffreys2

In case you haven’t noticed – the housing market is much different in 2013 than 2012. Over the past several years, the real estate market has been a buyer’s market due to fewer people looking to buy and a record number of foreclosed properties available to purchase. In short – too many homes and too few buyers.

That is definitely not the case now – the market shifted back in favor of sellers.

There were a few events that got us to this point:

  1. As normally happens toward the end of a year, the number of homes for sale declines. That happened at the end of 2012 like any other year. One thing that was new compared to recent years…
  2. Foreclosure rates have decreased and the number of foreclosed homes for sale dropped dramatically. Now there are far fewer homes on the market to buy than there has been in previous years.
  3. Interest rates are rising. They have been slowly edging up all year, and had a dramatic rise over the past couple of months. This has motivated buyers to get out there and find a home.

With fewer homes available, it is now a seller’s market. You can tell this because sellers are now receiving multiple offers on their homes, receiving above asking price offers, and are paying less money toward a buyer’s closing costs.

How should a buyer respond?

First – buyers need to be prequalified. If you are looking to buy a home in the state of Georgia, I’d be happy to help! Contact me, and we’ll get the process started.

Second – buyers must make offers quickly. The most common statement I hear from my clients right now is “the home is no longer available.” Good homes are not staying on the market long. When you find a home you like, instead of taking a few days to consider making an offer, go ahead and make the offer. While waiting on a response from the seller, you can debate whether or not this is THE home you want.

Waiting a day or two to make an offer on a home you like in the current market may mean you have to go out and find another home. To be ready, get prequalified and make offers quickly. Over the past few years, buyers had days (sometimes weeks) to make an offer. That is no longer the case in this brave new real estate world.

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