Buying or selling a home will have long-lasting effects on your personal finances as well as the happiness of you and your family. That is why it is critical that you have all the necessary information to make the wisest decisions regarding your home. But is College Park a buyer’s or seller’s market?
We can tell you that trends over the last few years have shown the real estate markets favoring home sellers, but this trend is beginning to change as markets cool. Inventory of available homes was low, demand has been high, and home sellers have greatly benefited from these facts. In recent months, though, things have begun to change in favor of the home buyer.
According to the latest reports by the National Association of Realtors, pending home sales around the country dropped in the last few months. With this knowledge in mind, it is important to have a skilled realtor by your side to make sure you are choosing the right path for you and your family.
Differences Between a Home Buyer’s Market and a Home Seller’s Market Explained
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 College Park, 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.
Is College Park a Home Buyer’s or Home Seller’s Market?
Now that you have a clear idea of what it means for the real estate market to be in favor of a buyer or a seller, we can move on to the specifics of College Park. So the question remains: is College Park a buyer’s or seller’s market. The answer, according to Rocket Homes, is a seller’s market, but this trend seems to be changing.
Compared to this time last year, the cost of homes in College Park has risen 9.4% and the average selling time in that same comparison is down 13.2%. However, when September and October 2022 are compared, the real estate market tells a changing story. Even though the number of homes that actually sold rose 111.1% (from 9 to 19), the number of homes available for sale rose 5.6%. Additionally, 63.2% of houses sold below the home seller’s asking price.
Why is the trend changing after a lengthy period of time favoring home sellers? It is very likely that the change stems from the rising interest rates and the mortgage rate hikes by the Fed in recent months. In fact, the Fed has pushed these rates to over 7% as an attempt to moderate the rising inflation. As a result, many home buyers are delaying their entrance into the real estate market in hopes of decreases in the interest rates with more affordable monthly mortgage payments.
Call Us to Buy or Sell a Home in College Park, Florida
As a home seller or home buyer, it is important that you make sure the current real estate market is in your favor before you list your home or make an offer. With the current trends in the industry, right now is a great time for home sellers to maximize the profit on their investments but home buyers should also be paying close attention to those changes.
If you are ready to buy or sell a home in Champions Gate, FL, be sure to contact Your Home Sold Guaranteed Realty – Laura Peterson Team to get all of the details you need to start your real estate journey. Our realtors are here to make sure you are able to sell your home fast and get the highest possible price, and we can also ensure that home buyers are able to get the best price on the home of their dreams.
We are waiting to hear from you and are excited to assist you with everything that needs to be done to finish your real estate transaction. Call us at (407) 566-2555 to get started!