The “New Normal” in Real Estate?
You have a better chance of not getting wet in a hurricane than you do of predicting what the real estate market will do in the coming months and years. Even the talking heads on your favorite news show stumble when they try to explain the unexplainable. The gyrations of mortgage rates, home prices, buyer demand and seller inventory remind you of a 16 year old at the High School dance after drinking four cans of Red Bull. Stand back or you might lose an eye!
Is this the worst time to buy or sell real estate? It’s true that mortgage rates are higher than they have been recently but home prices are falling to values not seen since 2019. You can purchase now and when rates drop you can refinance to a lower rate.
While you might sell your home for less now, you will also pay less for the house you buy. The market always moves in tandem; when prices fall, they fall for both buyers and sellers. People that buy now will start to build equity when prices rebound. They will look like real estate geniuses. You make money when prices are down not when prices are high.
The most important aspect of this New Normal is that overpriced homes will not sell. The homes that are accurately priced will sell quickly and the others will sit on the market like a week old salmon at the market. Don’t stink up your life by pricing high and hoping some uneducated buyer or crazy rich Californian will pay you too much for your home. It’s not going to happen.
The best way to navigate this new market is to realize that you are not stuck and you can make a move. There are some great buys out there, and the brave buyers will reap the rewards of acting while scared people sit on the sidelines and wring their hands.
The dwindling number of real estate agents in Central Texas is further evidence of the chaos in the market. Experience is the most valuable asset your real estate agent offers. If you work with a veteran real estate professional they will tell you that this is not a time to be timid. Now is a time to be bold to achieve your real estate dreams.
Steve Mallett is the Host of the Mallett and Michelle on Dripping Springs Podcast and the owner of the Mallett Integrity Team Real Estate company. He’s been an award winning Broker since 2004. Call him anytime at 512-627-7018 for great real estate advice on how to win in this changing market.