Multiple trends in the real estate world are converging this fall to create a home buying environment that favors strategic buyers. Since the buyer pool is pretty shallow right now, we thought it might be worthwhile to devote a week’s worth of posts to buyers. Buyer Week; it’s kinda like Shark Week on The Discovery Channel. At least that’s how we imagine it in our minds…
So here is the situation (not to be confused with The Situation):
– Home prices have been generally falling in Greater Hartford for a couple years now. Nobody knows what will happen next. We don’t know where prices are headed, and neither does anyone else.
– The first time buyer tax credit pulled a bunch of sales forward to the first half of the year. This has already been documented for Greater Hartford.
– Mortgage rates are at historic lows. Again, nobody knows where they will go next, but we do know that they’re below the historical averages.
– The fall buying season is quickly coming to an end. There is an uptick in deals in September and October, but the market slows considerably as the calendar moves deeper into November.
– Buyers are strongly preferring picture-perfect, move-in-ready, done houses. Needless to say, most homes don’t qualify. Contrast that to five years ago when people fell all over themselves to get a place they could put a little sweat equity into.
– There are lots of interesting houses on the market. Though, yes, most of them need at least some updating, and some need significant work.
Based on that, here’s the angle for sharky buyers. Think about taking a peek at the market right now and going against the current trend by considering homes that need a little bit of work. If you see something interesting, then you may be able to get it for a good price with a terrific interest rate. And if nothing catches your eye, fall back to your original plan.
Anyway, just some thoughts. Whether you’re considering a purchase now or later, check back in the rest of the week for different stories for buyers.