Experts agree the real estate recovery is underway, but conditions remain split among different local housing markets. Whether you’re buying or selling property, this makes it important to ensure you know exactly what is going on in your area before completing a transaction.
According to Zillow chief economist Stan Humphries, the position of buyers and sellers continues to vary depending on geography.
“In some markets, buyers are finding themselves in strong bargaining positions relative to sellers, confidently offering less than the asking price on a home they had months to consider,” Humphries added. “In other areas, it’s sellers that are squarely in the driver’s seat with their homes selling within days of listing, often after bidding wars that increase the sale price above the asking price.”
Where do we draw the line?
In a sellers’ market homeowners have more power than those looking to purchase property. Typically, homes are on the market for a shorter period of time and price reduction occur less often. In addition, final home sale prices are often at or above listings prices.
On the other hand, in buyers’ market, consumers have more power than sellers. Properties often sit on the market for longer periods and often at bargain prices below market value.
Where is it strong for buyers?
Although every local area is different, general trends indicate the Midwest and Mid-Atlantic currently have the strongest buyer markets. Specifically, Chicago, Cleveland and Philadelphia topped Zillow’s list for having the strongest conditions in favor of buyers.
Where is it strong for sellers?
On the opposite end of the transaction, markets in the Southwest, and especially those in California weigh in favor of sellers. Restricted property inventories in metropolitan areas, such San Francisco, San Jose and Sacramento, were specifically recognized.
Do your homework
The only way to really get a feel for the conditions in your local market is to research recent trends. A quick internet search will reveal listing prices, selling prices and the amount of time properties spend on the market. With this basic information you can start to paint of picture of how your local market fares in today’s real estate industry.
Once you figure this out, utilizing an FHA or VA mortgage loan to complete your transaction could be a viable option.
When making a mortgage rate comparison, it’s important to have the latest information. Freedom Mortgage updates its mortgage loan rates daily to make sure you find the best mortgage, whether you’re looking to buy a home or just refinance an existing loan.
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