What’s going on in our market? Is it a buyer’s market or a seller’s market?

Now that 2019 is right around the corner, the market is starting to balance out and shift toward more of a buyer’s market. There’s more inventory available, the number of sales is dropping, and buyers are doing more negotiating in their offers. Specifically, the North County luxury market is definitely slowing down, and I’m seeing a lot of price reductions in that area. 

As far as interest rates are concerned, experts predict that they’ll keep rising in 2019. Although they might go as high as 5.25% (or, as a worst-case scenario, 5.5%), the good news is I don’t think they’ll get close to the 6% mark. 

If you’re a buyer, this means you’ll have a higher mortgage payment. If you’re a seller, this means you’ll have a smaller buyer pool to work with. A lot of sellers hear this and are tempted to wait six months or a year to list, but if you’re thinking about doing that, I’d first advise that you sit down with your agent and strategize over the best time to put your home on the market. 

“As we enter 2019, we should see a more normal market emerge.”

How does inventory look moving forward? As with interest rates, inventory will keep increasing in 2019. Right now, we’re seeing a lot of potential sellers get off the fence and list their homes specifically because of rising interest rates. If you’re a seller, this means you have to be more competitive when pricing your home and preparing it for the market. 

Obviously, this is good news if you’re a buyer because it means you’ll have more homes to choose from. In the past, you didn’t have the chance to be this picky—if you saw a home you liked, you had to hurry up and bid on it. Sometimes, you’d also find yourself in a multiple-offer situation and have to pay over list price. 

Those days are mostly a thing of the past, though, and as we enter 2019, we should see a more normal market emerge. 

Whether you’re buying or selling a home right now, it’s crucial that you sit down and talk with someone who has their finger on the pulse of the market so that you get the best deal possible. 

If you have any other questions about our current market or you have any other real estate needs I can take care of, feel free to call or email me anytime. I’d be happy to help you.