We've all heard about supply and demand, but do you know how it impacts the real estate market? Whether you're a Morris and Sussex County real estate buyer OR seller, it's important to understand the concept of supply and demand: The best time to sell something is when the supply of that item is low, and demand high. BUT Team Nest Builder knows other factors must be considered. Read on for inside scoop on today's market.
Sell! Buy! Sell! Buy!
When it comes to real estate, anything under a 6-month supply is a SELLER'S MARKET. So the seller basically gets to call the shots on terms and price when inventories are short. Right now, buyer demand continues to outpace seller supply, meaning we're experiencing a seller's market, and prices are starting to rise.
Bad News Buyers
But, interest rates are ALSO rising. Meaning that mortgage money is getting more expensive, so it costs more to finance your purchase today than it did 6 months ago, and likely even more expensive later this year. For most buyers, when rates go up, they qualify for LESS mortgage money which means a less expensive home with the same down payment. So, if you are a buyer who has been sitting on the sidelines for a while, your purchasing power has likely been eroding due to higher rates AND now higher prices too.
National Real Estate Market Snapshot
What Does it All Mean?
What it all means is that NOW is the time to BUY your Morris or Sussex County home! Give Team Nest Builder a call and we'll get you started before you're priced out of the market. Don't let this window close!