Jim Valentine on Real Estate
Here we are again in a confusing real estate time. Buyers want to buy and sellers want to sell, but there are many outside influences causing them to question their actions and confusing their analysis of their options. What is one to do when the interest rates keep moving upward? Prices go up and down? Buyers changing their minds because of uncertainty?
Interest rates are felt by all even those paying cash. A cash buyer may be ready to go but can’t find the right home because so many homeowners are reluctant to give up their 2.5-3 percent loans that they got in recent years. Buyers needing a loan are looking at higher interest rates and other rising costs. Values have increased in recent years which leads to higher property taxes. Insurance rates are going up in some areas due to higher risks and costs required to mitigate damages to their claimants.
We are nearing the end of summer and sellers looking to avoid a repeat of last year’s special winter are wondering if they should hunker down or get sold. Do they reduce their price, or hold firm if they are priced right? Will interest rates go up squeezing the market further, or will they turn in the near future? Will prices be affected by these variables or is the demand sufficient to keep them where they are? In this time of rising interest rates values have performed contrary to expectations as they’ve been stable and actually increased in some areas.
Seasonal changes in Northern Nevada don’t have the same impact experienced in other regions. The market is good in the winter as well as summer. In both seasons we see a drop off when there are weather extremes, i.e.- extended high heat or cold/snow. These are anomalies, however, and the markets usually maintain. There can be fewer lookers in the winter than summer, but those that look in the winter are usually serious buyers.
This isn’t the first confusing market we’ve experienced and it certainly won’t be the last. It is common when buying a home to question if one is doing the right thing. Should we wait to see where values go? Should we wait to see what happens to interest rates?
Should we wait until after the election, or fire season, or school starts, or after Christmas, or for a leap year? Everyone has their own questions and the answer is actually quite simple. What will selling or buying now do for you?
Buyers can get stabilized. Start home improvements for added value, or simply enjoy the benefits of home ownership and the stability thereof for their family. Anything can happen to the many factors that affect value, but owning your home is something you can control. Once you buy, don’t second guess yourself. If you wait for that home run of a purchase you might miss many opportunities to hit a double or triple and be happy.
Sellers can put the guess work behind them and get on with their lives by selling. Home sales take time to implement and effect so the longer you wait the longer you’ll have to wait to get on with your life. Don’t stress, look at the advantages of selling vs. holding and make a decision.
Peace of mind and the ensuing happy emotional state it brings can go a long way in offsetting a dollar or few that may be holding you back. Mindset is important in real estate. Keep positive and positive things will occur.
There is only so much you can control unilaterally, and your mindset is one of them. Keep it right and the right thing will occur.
Don’t get pushed around by whimsical market factors. Talk to your agent and make a plan. Work your plan and enjoy the results you achieve for you and your family.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Realty Affiliates, 775-781-3704. dpwtigers@hotmail.com.