Market Shifts with the Holiday Season

Welcome back to the North Coast Realty monthly blog! Once a month, we’ll post anything from market trends, to selling and buying tips, and investing ideas. If there is anything on this blog that you would like to see, but haven’t seen, contact us on our webpage!

Our topic today is going to be market trends. For the first time in a few years, we’re starting to see the market shift into a buyers market. “What does this mean?” you may ask. Well, a buyer’s market generally means that homes will stay on the market for longer than they would for a seller’s market because there is a shortage of buyers. This gives buyers the upper hand which compels the market to respond accordingly. Remember when you would tour a home and then the next day it’s off the market? Buyer’s markets are the opposite. Longer time on market generally means buyers will want longer inspection periods and will have more negotiating power. However, this does not mean that buyers have all the power. Remember, the sellers and listing agent are not always willing to give concessions. With this in mind, be sure to give fair counters/offers or you will risk the sellers walking away from the deal for another interested buyer.

In this buyer’s market, it’s a great time and opportunity to get into investment properties. Buying property in a buyer’s market can set you up for great success in the long run! By providing you with great equity and more financial freedom, investment properties are one of the best ways you can start/continue building your wealth! There can be a lot of thought that goes into property investing. One of the most important things to consider is the right management company. Make the process easy for yourself by hiring someone you trust! Management companies greatly assist owners by handling the marketing to find tenants, collect rent payments, manage maintenance and repairs, enforcing lease agreements, and providing financial reports. Property management companies also have access to their legal departments in case you are unsure of how to navigate a potentially sensitive issue in your property.

We’ll finish this month’s post off with some buying tips to help you through this market.

1. Think about your long-term needs

   1. You’re no longer renting. This means you are no longer thinking in terms of 12 month increments. Since you are now a home owner, think in terms of 5-10 year increments. This can help with scheduling maintenance for utilities such as the furnace, AC, and water heater.

   2. Consider other factors like future family plans, career growth, or the possibility of needing more space. Even if you’re single or don’t have children now, buying a home with flexibility for your future can save you from having to move sooner than expected.

2. Factor in all associated costs to the process.

   1. Closing Costs: These can be anywhere from 2-5% of the purchase price and include fees for inspections, title insurance, and loan processing.

   2. Homeowners Insurance: Lenders will require you to have insurance, and rates vary depending on the property’s location, value, and other factors.

   3. Property Taxes: Make sure to check property tax rates in the area and budget for these ongoing costs.

3. Explore first-time home buyer programs and grants.

   1. Federal and State Programs: Many states offer programs specifically for first-time buyers, which can include down payment assistance, lower interest rates, or reduced mortgage insurance costs. Programs like FHA loans, VA loans, and USDA loans are also worth exploring if you meet their criteria.

   2. Local Grants: Some cities and counties offer first-time homebuyer grants or other incentives. It’s worth checking with your local housing authority or real estate agent to see if you qualify for any local programs.