When is it Time for Home Buyers to Buy?

When is it Time for Home Buyers to Buy?

Like the rest of the USA, Charleston has seen its fair share of large inventory, reduced prices, short sales and foreclosures.

There are many buyers who are able to take advantage of these great opportunities.

However, there are those who are waiting, but when is waiting too late?

I read an article from Realtytimes and they stated the six signs It’s Time for Home Buyers to Buy:

  • Inventories start to decline: That means that the best buys are leaving the market and best doesn’t necessarily mean cheap. It means the homes with the highest likelihood of profitable resale. Desirable homes will leave the market first.
  • Days on the market reduce: Days on the market refers to period when a Realtor enters a home in the MLS for marketing to other brokers until the home sells. When DOMs are shorter that signals a coming seller’s market. A seller’s market has more buyers than homes, so prices go up and selection goes down.
  • Mortgage application increase: Interest rates recently turned back the clock, causing many homeowners to jump in and refinance. Purchase applications were also up. Either way, that means homes are about to leave the market, so less inventory means firmer prices. Sellers will stop dropping prices.
  • Sold homes go for closer to listing price: In 2007, home prices dipped for the first time in four decades. With a 1.9 percent decline, homes still sold within 97 percent of listing price. When they get to 98 percent, you’d better be ready.
  • Prices remain firm or rise: Prices are a product of demand. To attract buyers, sellers reduce their firm prices and offer more incentives. If homes are selling reasonably well, prices won’t move downward- they will go up.
  • Incentives disappear: When a market begins to favor sellers, they don’t have to do as much to sell homes. Watch new homes and see if the builders are still giving away swimming pools and granite kitchens. If they aren’t, times have changed.

Any change in the condition will change others, so again- be ready. Now’s the time to buy a better house while prices are low, interest rates are low and inventory is high.

You may not make that large profit as you imagined 5 years ago when you bought your home however, you can definitely make up for it when you purchase!

If you have questions about the market or for any “great deals” here in Charleston, please do not hesitate to give us a call!

I love helping people successfully find and perfect their dream homes in Charleston. This is why I'm dedicated to home selling, buying, decorating, designing and remodeling.