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Making Sense of Real Estate • January 16, 2024

Competition Will Heat up With the Seasons

by Ryan Giavasis

There is no doubt that the current market of the midwest real estate economy is being viewed under a microscope. Thousands of hopeful buyers and sellers are looking to time the market in a way that best aides them when it comes to getting the best price for a home. With the onset of Spring set to give us yet another year of buyer competition, is waiting the best answer?

To put it short, no. Waiting may only help those that are selling their homes in the future. With the FEDs promise to lower rates between 3-5 times this year amongst the battle of inflation, it will be no surprise when the prices of homes begin to rise. This rise will come strictly from the increased demand of buyers entering the market with the hope of affording a lower mortgage due to these lower rates.

In an essence, we are now in a buyer funnel. When rates lower, even more demand enters the market. Demand immediately results in higher prices. More people, more offers. More offers? More offers above list price. The market will be a not-so-long-ago nostalgia of the bidding wars we’ve seen since the beginning of Covid.

So, how does a buyer win? Sellers seem to be in the boat with the paddle and an engine attached to the back. Where does that leave those that are hoping to use down payment assistance? It leaves them in…. the snow! The best time to look before the market heats up is in the cold! Winter months provide a beautiful opportunity for buyers to look at houses that remain on the market longer. Likewise, sellers become more motivated to accept offers with more contingencies as well. It’s not a loss to the seller, but it is a gain for the buyer!

Consider buying when others aren’t. Winter is a time for bargaining and adventure when it comes to real estate. While people bundle up inside, look for those homes on cold and snowy days. Sellers want to sell their homes as badly as you want to buy one! And with longer days on the market, it seems like a match!

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