When it comes to getting into the real estate market, there are a multitude of things to consider. Some of them have to do with you and your unique situation: personal finances, time frame, preferred location, budget. Other factors are out of your control, like the market. So, is Celebration a buyer’s or seller’s market?
One of those factors is the current state of the real estate market. In general, the market will either favor the buyer or the seller. Even in a neutral market, the needle will usually lean one way or the other. So, before you make an offer on or list a home in Celebration, it is critical to find out if the market in your area is favorable to you.
Recently, the real estate market in general has been definitively in favor of the sellers. Inventory was remarkably low because homes were selling very quickly, and buyers were racing against the clock and each other to make a winning offer. This year, however, things have started to change and markets are beginning to soften.
In fact, according to the National Association of Realtors, their recent report shows that pending home sales around the country dropped in the last few months of this year. So, how does this affect you and your desire to become a homebuyer or home seller? Read on to find out!
What’s the Difference between a Home Buyer’s Market and a Home Seller’s Market?
The first thing that you need to know and understand is the difference between a buyer’s market and a seller’s market. It all comes down to a basic concept of economics: supply and demand. Depending on the circumstances of the area in which you live, supply and demand can vary, and this will be the determining factor when it comes to your ability to buy or sell a home successfully.
Home Buyer’s Market
When the real estate market is in favor of home buyers, the primary factor that determines this is the supply of homes in the area. If it is a home buyer’s market, that means the supply of homes outweighs the demand for them. With a surplus of homes, buyers will have their choice of what they consider the perfect house for their families and can usually get a great deal without going over their budgets or paying the full asking price of the home sellers.
Home Seller’s Market
Conversely, the opposite is true for a home seller’s market. In this case, the supply of homes is low but the demand for them is very high. This gives sellers the advantage, and they will often end up with multiple offers for their homes, all over the asking price.
Knowing the current state of the real estate market is critical for anyone thinking about buying or selling a home in Celebration, FL. You will need to know if you will be at an advantage when it comes to making an offer, negotiating, and closing the deal. So, is Celebration a buyer’s or seller’s market?
Is Celebration a Home Buyer’s or Home Seller’s Market?
If you are thinking about jumping into the real estate market in Celebration, FL, right now, be sure to first consider the state of the market as of October 2022. Currently, the market is still in favor of the home seller, but this trend is slowly changing and working toward a more neutral market.
According to Rocket Homes, homes sold for 15.7% more in October 2022 than they did at the same time last year. The number of available homes for sale remained constant from September to October 2022, but the number of homes which sold in that month’s time increased 22.2%. Likewise, 68% of homes sold in under 30 days on the market.
However, the average selling time from October 2021 compared to October 2022 is up by 93.5%, and 59.1% of homes sold this month came in below the asking price. So, even though the current real estate market continues to lean toward the home seller, this trend may be changing in the coming months.
Why is this change happening? It could be due to the rising interest rates and especially the Fed’s recent mortgage rate hikes which have pushed them over 7% as a way to cool rising inflation. Because of these rate hikes, the economy is making it more difficult for home buyers to actually afford mortgage payments, and they are making the decision to wait until rates decrease before investing in a new home.
Ready to Sell a Home in Celebration, Florida?
As a home seller, it is important that you make sure the current real estate market is in your favor before you list your home. With the current trends in the industry, right now is a great time for home sellers to maximize the profit on their investments.
If you are ready to sell your home in Celebration, FL, be sure to contact Your Home Sold Guaranteed Realty – Laura Peterson Team to get all of the details you need to start your home selling journey. Our realtors are here to make sure you are able to sell your home fast and get the highest possible price.
We are waiting to hear from you and are excited to assist you with everything that needs to be done to get your home sold as fast as possible. Call us at (407) 566-2555 to get started!