The answer is, “Now!” when you’re working with an experienced real estate broker who can navigate the market to your best advantage, regardless of industry trends.
SELLING A HOME
The good news for sellers is that the housing inventory across New York state continues to decline. That means fewer houses are on the market, so there is less competition for sellers. Year-to-date listings in 2022 decreased by 68.9 percent in Rotterdam and 18.3 percent in Schenectady County from a year ago.
Additionally, buyers are prompted to take quick action when they find a home they like, so homes stay on the market for a shorter period of time. A home could even end up in a bidding war between buyers, resulting in an increased selling price. In Rotterdam, homes spend an average of 57 days on the market as compared to 72 in 2021.
Those two factors, along with a rise in home prices, make selling now ideal. The Federal Housing Finance Agency reported that from February 2021 through January 2022, home prices rose 19.2 percent.
In addition, fewer homes on the market means that buyers may be willing to purchase a home without sellers doing a lot of preparation to sell it in terms of updates and cosmetic changes. These days, buyers are more willing to update homes to suit their own tastes after purchasing them.
BUYING A HOME
For buyers, lower housing inventory and slightly higher mortgage rates might seem like dismal news, but there are a few factors that make buying a home now a smart choice.
With low housing inventory, landlords and apartment complex owners are taking advantage of the market by increasing rental prices. Over the past 10 years, the median gross rent nationwide has increased by 31 percent. In Rotterdam, the median gross rent is $1,273 with an average apartment size of 846 square feet. Area rental rates have been on the rise for the past several years.
This is why it makes sense to purchase a home, a long-term investment that results in building equity. In addition, having a mortgage offers tax benefits. Even though rates have increased slightly, mortgages are still lower from a historical perspective, and now would be the time to take advantage of those rates before they rise.
The COVID-19 pandemic has also caused a shift in where people work, with many employers continuing to allow telecommuting. This means that employees do not necessarily need to work close to their jobs. They could relocate to a more affordable area and purchase a home there.
In today’s housing market especially, employing an expert broker will help you to position yourself well in the market, whether you are a buyer or a seller. To connect with an expert, click here.