There is energy in the air, and homes that sat on the market for six months or more last year are starting to sell. It seems like someone switched on a light and all the buyers that sat on the fence last year are suddenly motivated to buy.
With oil prices hovering in the $50 per barrel range, we are also seeing more activity in the relocation sector as Oil Companies pick up their production again and start to fill the gaps caused by over 100,000 layoffs in the last two years. This is not only good for home sales, but also the rental market, which has always been one of the strongest in the nation.
Perhaps the fear of increased interest rates are motivating buyers to make a move. The Fed has promised to increase rates at least twice this year, and interest rates are hovering over 4% on a 30 year mortgage, which is the highest we have seen in the last five years. Realistically, these are still great rates, but we have become accustomed to rates under 4%, allowing the average American to afford to purchase a higher priced home.
Although it is not a Buyer’s market yet, stay tuned in 2017! We are starting to see multiple offers and buyers paying above asking price again in some price ranges. This is a welcome relief for sellers, but I hope we do not move into the buying frenzy we saw in 2013 and 2014 with bidding wars causing buyers to offer well above the asking price in order to “win” the home. An experienced Realtor will help navigate you through the buying and selling process and the market shifts once again.