Can Buyers and Sellers Master This Market?
Here’s why now’s a great market for buyers and sellers.
What’s the latest news from our Greater Houston real estate market? To answer that question, let’s begin with what we saw last year. 2020 was an amazing year as far as real estate is concerned. We saw home values increase and properties fly off the market at record speed. We’re now seeing an uptick in interest rates, but we knew at some point this year that would happen. The projections we saw at the beginning of 2021 forecasted a rise to perhaps 3% or slightly over. They also predicted we’d see 3.3% or 3.4% by the third or fourth quarter.
We can’t predict what's coming, but we know that sometimes when the stock market is unstable or there’s a lot of drama in the world (which there always seems to be), interest rates tend to tick upward. There’s no need to freak out, though, if you’re planning on buying a home. This doesn't mean interest rates will bolt sky-high, and 3.3% is still an amazing rate. Heck, even 3.6% is a great rate. Back when I was a lender, from 2004 to 2008, we’d quote buyers at anywhere from 6% to 10%.
"What we do know is the market is amazing right now for buyers and sellers."
Now’s a great time to sell and buy. If you’re a seller, there’s hardly any inventory on the market, so we need listings. We’re still getting top dollar for our listings, they’re still selling quickly, and we’re finding new homes for our sellers. If you’re thinking of moving into a bigger home, now’s definitely the time to act. As I said, interest rates aren’t projected to spike anytime soon, but they’re higher now than they were two weeks ago, and they should be close to 3.5% by the end of 2021. Acting now means you’ll sell quickly while interest rates are at their lowest levels.
If you’re a buyer, don’t sit here and wait to see whether interest rates will come back down. If they do come back down, they won’t dip below 3%—we may not see that ever again. I encourage you to make your move now. It may take you a while because inventory is tight, but if you work with a professional team such as mine, we’ll guide you and ensure you don’t overpay for your next home.
We’re expecting more of a balanced market to emerge in the third and fourth quarters, but again, we don’t own a crystal ball. What we do know is the market is amazing right now for buyers and sellers.
If you have questions about our market or there’s anything I can help you with, don’t hesitate to reach out to me. I’d love to hear from you.