Agents of La: What Is Going On In The Real Estate Market?
By: Taylor Milliner
“Tai, how do you feel about the housing market right now?”
Tai Savet, a prominent real estate broker in the city of Los Angeles and the founder of Agents of La Inc., gets asked this question nearly every day. Due to the very unpredictable housing market, investors and first-time home buyers are skeptical about whether to buy or sell right now.
Source: Realtor.com Home Sales Database. House icons by monkik from the Noun Project.
As housing prices are skyrocketing, buyers are finding it difficult to stay afloat and property owners are enjoying the perks of being offered far above asking prices, in addition to all cash deals.
It is vital to understand what type of investments the current housing market can offer and what your priority is when you identify what your best interest is. Let’s break it down to the basics.
Sellers Market vs. Buyers Market
Seller’s market is when there are more buyers than sellers, leaving a short supply of houses to buy from and an increase in selling prices. A buyer’s market is the exact opposite — a surplus of homes in comparison to the amount of buyers.
House market data of 2021 supports that 2021 is in a seller’s market. So, if you are thinking about selling, now is the time to do it. That does not mean buyer’s do not have perks.
If you are interested in buying, you can still invest right now. Selling your existing property will be easier than usual, considering that “homes are selling in two-thirds of the time they sold last year and less than half the time they did four years ago.”
The average home usually sits on listing sites between 55 and 80 days. The average home was on listing sites for an average of only 39 days in August, according to Realtor.com data.
Buyers can also utilize low interest rates.
Since the pandemic, federal interest rates are historically low, despite them slowly increasing within the last week.
“The shutdown has changed the real estate market significantly but I don’t think that the future of the real estate market will crash. Sure, housing prices may fall slightly but not drastically,” Savet stated.
Despite whether one may want to sell or buy right now, there are essential benefits to both decisions that are critical to be aware of.