How can both a buyer and a seller win in today’s real estate market?
Ryan Haley, owner and broker of Atlantic Shores Sotheby’s International Realty, offers advice to both real estate buyers and sellers during a seller’s market.
As predicted and based on numbers, we are now seeing a very strong seller’s market, with Ocean City down to under two months of inventory, while Ocean Pines has below one month of inventory. This means that there is an extremely strong demand for housing, but a limited number of homes available.
How a Seller Wins
The current market situation means that listings are getting a lot of attention and multiple showings, resulting in multiple offers and prices going above their list price.
Buyers are also using escalation clauses to secure the property they want. We have not experienced an environment like this even back in 2002 and 2003.
This puts the seller in a very good position.
How a Buyer Wins
With prices going up, how does a buyer win in this market?
For the buyer, it is all about affordability. While prices have gone up, they have not skyrocketed to be as high as prices back in 2005. Buyers today benefit from extremely low-interest rates, which have not been this low ever.
According to Black Knight/Mortgage News Daily: “Those shopping for a home can afford 10 percent more home than they could have one year ago while keeping their monthly payment unchanged.”
This means that buyers have nearly $32,000 more buying power today than a year ago, with monthly payments staying the same.
In short, buyers today enjoy low-interest rates, and with affordability factored in, they can buy more home and can look forward to future equity.
The key is to be prepared, making sure you are pre-approved, and always keeping an eye on the market while working with a great real estate agent to help you get the best deal.
To learn more about how you as a seller or a buyer can benefit in today’s market, call us at 410.524.0919 and we’ll be happy to help.