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If you’ve been staying up to date with the current real estate market, you probably already know that it’s a hot market and it strongly favors sellers. For some, it may be the perfect time to finally put their home on the market, but others may still be on the fence. Real estate agents are speculating that the market could balance out if sellers come down with a serious case of FOMO. But, even if there’s an influx of sellers entering the market, will it make a difference?
We believe it will – at least to some degree. Here are a few factors that could balance out the real estate market.
Factors That Can Balance The Real Estate Market
A Carpe Diem Mindset Could Encourage Sellers
Folks tend to wait to make big decisions until they know for sure what the outcome could be. When it comes to real estate, people want to wait until the real estate market is in their favor. Well, if you’re a seller, this is your time to shine. 49.3% of real estate agents are seeing an influx of new homes coming to the market and 48.3% predict the trend will continue well into the autumn.
With that said, if your home needs some work and doesn’t have the upgrades buyers are looking for, your home could easily be looked over. Buyers are willing to pay the asking price (some will even go above asking!), but they expect that home to be worth the price.
Offers Coming In Way Above The Asking Price
Due to supply and demand, home prices are on the rise in Seattle – that much we already know. However, what homeowners may not realize is that buyers aren’t just submitting offers at the asking price… They’re going above the asking price! We aren’t talking about offers being $10,000, $20,000, or even $50,000 over asking… We’re talking half a million over the asking price!
As you could imagine, when homeowners hear that they could earn $500,000+ more than they thought for their home, it’s highly likely that there’ll be a surge of new homes coming onto the market.
Homeowners, New And Old, Want To Cash In
Homeowners whose children have moved out of the house (aka empty-nesters) are the number one age group who are putting their homes on the market right now – this is particularly true in the Northeast, according to 73.4% of surveyed realtors. This age group is taking advantage of the years of equity they’ve accumulated and cashed in, thus allowing them to relocate (if they wanted to) and downsize… And walk away with a decent chunk of change to add to their retirement funds.
It isn’t just the older generations who are selling. The younger generations who are living in their first home are considering selling their current home and putting some money back into their pockets. Some of these sellers might consider renting for a little while as they save up for a larger down payment on a larger home or do some research to find a cheaper place to live if they’re now able to work remotely.
FOMO Could Be Beneficial For Real Estate
There’s no denying that it’s a great time to sell your house, but it’s worth noting that unless you have a new living arrangement lined up, you might have a challenge trying to buy a house. But that doesn’t mean it’s impossible. If sellers do get a case of FOMO, agents believe there’ll be new properties coming to the market and it’ll all balance out.
So if you’re considering buying (or selling), consult a realtor to get an idea of where your local market is heading so you can plan accordingly!