Is it actually possible to time the real estate market? Let’s discuss.
First of all, remember that every market is different. You’ve probably heard that the market is hot right now with tons of buyers and multiple-offer situations. That’s not necessarily the case for all areas—all real estate markets are local. Yes, here in Elk Grove, the market is hot; sellers are getting multiple offers for their homes, and many are getting more than their list prices. But not all markets have that same level of activity, so be sure to consult with a real estate professional to gauge what’s going on in your specific area.
Second, interest rates fluctuate over time, and right now, they’re going up. The Federal Reserve will raise interest rates a few times in 2022. What does that mean? If interest rates go up, it’ll take some buyers out of the market as their buying power decreases. For buyers, it means that you should act before rates get any higher. If you’re planning to sell, rising rates could reduce your buying pool. No matter what your plans are, we can give you the information you need to make the smartest decision.
Third, understand that real estate is seasonal, and seasons change. The real estate market has followed a typical seasonal pattern for a long time, but with COVID and advances in technology, that’s not necessarily the case anymore.
“Waiting until spring and summer when everybody else is looking probably isn’t the best decision.”
Finally, understand that money isn’t everything. Yes, money is important since real estate is a business transaction. However, emotions are also involved in the process. If you’ve lived in your house for a long time, you’ll probably have a lot to consider, such as if you need to negotiate a rent-back, close on a particular day, or sell quickly. You’ll also probably need help sorting through all of your multiple offers to find the one that is actually going to close escrow and get you your desired results.
