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Market Conditions
CT SCAN: Market Reports
What's going on in today's market?
The current real estate
market in Connecticut is considered by many to be a
"correcting" or "adjusting" market.
After several years of an unprecedented number of home
sales and rapid value appreciations, prices are
stabilizing, with some areas adjusting slightly up or
down. Mortgage interest rates have slowly started
to rise, slowing the market down a bit. However,
though a bit higher than in recent years, today's
interest rates are still historically extremely low,
still providing cheap money for your home purchase. This
correcting market brings with it an unnecessary air
of worry among both buyers and sellers.
Sellers worry that they will not be able to get
"their price" for their home. Sellers should keep
in mind that they have recently enjoyed unheard of
appreciation rates, and sales prices are always related
to the market. Homes are sold at market value no
matter what the market is currently experiencing.
While sellers may no longer expect to sell for much,
much more than their neighbor recently sold their home
for, they have already earned great appreciation of
their home's value. With interest rates remaining
historically low, homeowners will still be able to sell
for a reasonable price in this current market. It
is definitely more important now for sellers to price
their home at or slightly below the market and their competition,
and to present their home better than others on the
market to generate buyer interest. An overpriced
home will most likely languish unsold on the
marketplace. Be sure to inquire with your REALTOR®
about how to best position your home in the current
market to ensure it stands out from and supersedes the
competing homes. Buyers worry that if
they buy a home now, it may be worth less next year.
Buyers should keep in mind that depreciation of home
prices usually correlates with increased mortgage
interest rates. Even if a home's value should dip
slightly, chances are that the corresponding higher
interest rates will make that home more costly to buy
and possibly out of your financial reach. It makes
sense for most buyers to purchase now with the low
interest rates. Over the long term, housing prices
have consistently risen, and your home should be
considered your pride and joy, your family's
centerpiece, and a long term investment for your future
and your financial well-being. In addition, with
the current increase in housing inventory on the market,
buyers have more homes to choose from, increasing the
likelihood of finding a home that meets most or all of
your needs and wants.
Contact Don today for more
information about buying or selling a home in today's
market. |
