Recent stock market volatility has been the source of intense speculation among real estate experts. The next recession may or may not be around the corner which leaves many to wonder: what are the implications for buying and selling in today’s hottest markets?
The Pacific Northwest housing market is on fire. If you own a home in Western Washington, the decision to sell in 2018 could mean cashing out pretty big right now.
Let’s have a look at how market fluctuations are driving lucrative opportunities and what it means for prospective Seattle home sellers.
Low inventory and high demand
Real estate is cyclical. When property values rise, and prices surge, the market invariably reaches a peak. The consensus among analysts and experts is that these numbers will continue climbing. As a result, homeowners are keeping a close watch on their soaring equity and their position for cashing out.
In most areas of Washington, the inventory of available homes for sale has plummeted to all-time lows. The strong economy and unprecedented population growth are responsible for the limited supply and thus a high demand for real estate statewide.
The combination of skyrocketing prices and shortage signals tough times for home buyers and a lot of promise for enterprising sellers.
Interest rates on the rise
Volatility in the stock market means different things for different sectors of the economy. In general, there is a correlation between stock market values and property values. Both tend to do better in healthy economies. But understanding the bigger picture of real estate prices and buyer/seller trends means paying attention to interest rates.
Increasing interest rates puts downward pressure on housing prices. Home buyers’ purchasing power diminishes. As a result, they may consider buying now rather than later when the rates are higher. Or, they may back off and wait for better days. No buyer in his right mind wants to overpay. Then again, everyone needs somewhere to live.
For buyers, enduring the housing market’s potential downturn may mean buying for the long term. Investing in a property only to sell it in a year or two for quick cash is probably not the best move considering the circumstances.
Selling a home in a hot market
With so many people relocating to the greater Seattle area for high-wage jobs, the competition is fierce. As a result, the market is a battlefield for bidding wars and homes are being purchased for well above asking prices.
So what does that mean for homeowners on the fence about selling? Is it truly as easy as listing a property and stepping back to watch the offers roll in? Maybe. But there are no guarantees. If you want to sell quickly, and for a fair price, you need to think ahead.
The spring buying season usually kicks off around mid-February. This year, potential buyers are taking action earlier than ever before. Across the country, homes have been selling two weeks faster than they were during the same time last year. And in Greater Seattle, buyers are visiting open houses and signing on the dotted line, all within a matter of days.
If the property is priced competitively, listed and marketed properly, and staged well, home sellers in a hot market have an excellent chance of receiving multiple offers from the get-go.
It is clear that market volatility puts things in motion. Although nobody can predict the future, it is safe to say that 2018 is very good year for being a homeowner in in Washington state. It may be a great time to sell the property now before a greater recession comes along and housing prices spiral downwards.
Do you want to cash out quickly? Let us help you weigh your options. We are professional home buyers that pay cash for homes in and around the Puget Sound area including Seattle, Tacoma, Everett, Kent and beyond. Give us a call today and tell us about your property.