Buyer and Seller Tips for September 2020: Ryan Haley on How to Win in Today’s Market
Ryan Haley, owner and broker of Atlantic Shores Sotheby’s International Realty, shares tips on how both a buyer and a seller can win in today’s real estate market which is now experiencing a strong seller’s market.
As predicted and based on numbers, the market is now seeing a very strong seller’s market. Ocean City, for instance, is down to under two months of inventory, while Ocean Pines has below one month of inventory. This means that there is an extremely strong demand for housing, but a limited number of homes available.
What This Seller’s Market Means for the Seller
The current market situation means that listings are getting a lot of attention, with multiple showings resulting in multiple offers and prices going above their list price.
Because of the competition, buyers are also using escalation clauses to secure the property they want. Such an environment has not happened even back in 2002 and 2003.
This puts the seller at a very good advantage.
What This Seller’s Market Means for the Buyer
With prices going up, how does a buyer win in this market?
For the buyer, it is all about affordability. While prices have increased, they have not gone as sky-high such as the prices back in 2005. Buyers today also benefit from extremely low-interest rates, which have not never been at such a low level.
Black Knight/Mortgage News Daily says, “Those shopping for a home can afford 10 percent more home than they could have one year ago while keeping their monthly payment unchanged.”
This translates to nearly $32,000 more buying power today than a year ago, with monthly payments staying the same.
Buyers today enjoy low-interest rates, and with affordability factored in, they can buy more home and can look forward to future equity.
The key for buyers is to be prepared, ensuring preapproval, and working with a great real estate agent to get the best deal.
To learn more about how you as a seller or a buyer can benefit in today’s market, call us at 410.524.0919 and we’ll be happy to help.