What does it mean to be a buyers’ market vs. a sellers’ market?
A basic economic definition of the term “buyers’ market” will tell you there is more supply than demand, thus, giving advantage to the buyers. In real estate, this would translate to a lot of homes for sale, high inventory, and few buyers—thus, giving buyers the advantage.
In the past year, the buyers have been driving the real estate market in Greenwich. Many sellers have been struggling with a soft market and facing the fact that they may not be getting back the money they paid or invested in their home. Historically, homeowners expect their home to be their biggest investment.
Owning a home instills pride and security. Owners expect to see price appreciation on their home. This past year has seen home prices decline in our area, making it a great buying opportunity for first-time homebuyers. Much of the price correction is due to the fact that the upcoming group of first-time homebuyers are not earning the same salaries that the previous generation earned, and they are more conservative in their spending habits. People have money they have been afraid to spend.
Will 2020 be the year for buying?
Mortgage rates are favorable for buyers, giving them more buying power and presenting a great buying opportunity. The correction in the housing market has brought prices down to more realistic, affordable levels, to be in-line with today’s buyers. It is painful for the sellers, but our indicators are telling us we are now in an overall good place. Some of the concerns that kept money from flowing in the economy—for example, the China-U.S. trade war—are now settled. The stock market is strong, and the unemployment rates remain low.
With home prices a bit more affordable and low mortgage rates, giving the buyers more buying power—together, with a strong economy—now is the time to buy. Inventory is shrinking as buyers scoop up homes that have been sitting and may have had a price reduction. The spring market starts now and gets in full swing by March. Are you ready to buy?
Real Estate Listings
Laurie Meyer, Halstead Real Estate,
Greenwich office, 203-869-8100 office, 609-577-0640 cell; firstname.lastname@example.org