Have you seen the most recent addition to the King Kong series? If you’re a science fiction fan or have seen every King Kong movie ever made, it’s probably likely you’ve already screened Kong: Skull Island. The story follows the standard King Kong script where a group of scientists just happen to bump into an uncharted island where, as you already know, the creatures there are of the larger variety.
Anyway, if you haven’t seen Skull Island, I’ll keep you in suspense. If you’re right in the middle of buying a home and it’s definitely a seller’s market, should you venture into uncharted territory and jump feet first into a hot real estate market? You might be surprised at why you should consider buying in a seller’s market.
There can be colloquial differences but a real estate market that is in equilibrium, doesn’t favor the seller or the buyer.
If homes are listed and sold in less than 90 days, it’s a seller’s market. If homes take much longer than 90 days, it favors the buyer. In areas where homes sell quickly, list prices typically hold firm.
When buying in a seller’s market and median home prices are on the rise and don’t appear to be turning back anytime soon, if you are buying a home it makes sense to buy sooner rather than later. If you buy a home today and property values increase by another 10% over the next four or five months that equity belongs to you.
If you want, you can then take out a line of credit on that newly found equity to use any time you want.
Finally, if interest rates appear to be on the rise while at the same time property values are moving up, it’s better to buy now, not later
At the same time, if you’re buying a home and you need to sell the one you currently have, you’re on the receiving end of property values. When your agent sets a list price for your home you can be comfortable knowing you’ll get the amount you expect without having to haggle.