It’s a difficult market for buyers, but we’re not in a bubble.

Sellers are enjoying the current market, to say the least. If you’ve been trying to purchase a home, though, you know firsthand how frustrating the market has been for buyers. Many of my clients are struggling to get their bearings when demand is so high and inventory is so low.

The strong seller’s market is simply the result of supply and demand. It’s giving many of my clients flashbacks to the market crash of 2009—me included, as I bought my home in September of that year. Fortunately, our market today is nothing like it was when the crash occurred.

Yes, we have a frenzy of activity and prices are rising, but the mechanics behind these are different from those of 2009. To sum it up, fear shouldn’t stop you from making an investment in today’s market. Contact me if you’d like an in-depth explanation of why.

The rate of appreciation in 2021 may not be sustainable, but that’s up for buyers to decide. Prices are rising because buyers are willing to pay them. Further, market value is just an indicator of what a buyer is willing to pay and what a seller is willing to take.

“If you buy a home while the market is still rising, you should still be able to build equity when the market adjusts.”

Markets are cyclical. They go up and down over time, and they don’t require a crash in order to change. Although interest rates have gone up slightly, they’re still historically low. The rise tempers buying power a bit, but we still have extremely low inventory.

The market may soften over the next six months, and at some point, things will adjust. If you buy a home while the market is still rising, you should still be able to build equity when the market adjusts. Remember, a buyer’s market is when prices are flat or decreasing—if you buy a home during one, you could go through a downward trend before getting appreciation.

I know it’s frustrating to buy in a seller’s market, but it still has its benefits. If you feel it’s the right time to buy, you should do so. If you have any questions or would like more information, feel free to reach out to us. We look forward to hearing from you soon.