Frustrated homebuyers in 2021 need to just keep swimming
Topic: Buyer And Seller Resources, Recent, Rural Living Blog
If you've been looking to buy property and are very frustrated by the competitive nature of this market, don't give up. It's hard to lose to multiple offers, cash offers and escalating prices. It's brutal and I'm sorry it's so hard. But don't give up.
Interest rates are still so low and we know they will increase in the coming years. Those of us who have been in the industry for a long time do not feel things will "get better" for those who choose to move to the sidelines. 2021 is not 2007. The economic dynamics are very different.
Eventually the market will stabilize and slow into more normal peaks and valleys, but we don't believe it will correct itself in a dramatic way. Prices (and rents) will most likely continue to rise and when rates rise, your borrowing power will fall. Some experts believe we could see rates close to 4% by year end. With inflationary pressures, we could see them jump sooner and without warning potentially slamming the door on many who can't afford that leap. We just don't know. All we know is right now, rates are still historically low. Even a .75 rate increase could equal a lot of money over the life of your loan... probably more than that extra money you had to pay over the asking price to win a house today. Do that math with your lender and your Realtor so you understand the full economic consequences of now vs. later.
We are also coming up on the first summer after vaccination and pandemic restrictions have been loosened. I know so many people who are going on vacation over Memorial Day or the first week of June. Many people are looking forward to all the travel, bbq's and family reunions they did not get to have in 2020.
The buyers who choose to stay back and write offers on available properties may have less competition during that period of time.... maybe. There is so much demand maybe it won't make a difference. Or it could be the small window of opportunity you need right now. And many people put their homes on the market during the summer so we could have boosts in inventory. More may opt to sell this summer after seeing what prices have done this spring. So, hang in there.
The 2021 spring real estate market has been an unprecedented time. It's been hard on real estate brokers, buyers, lenders, sellers and all industry related vendors. It's been an exhausting time. It's been hard on our team and clients as well. Nothing is easy. But we've won more than we've lost and we've definitely capitalized on opportunities wherever we can to help our clients get into the home they want. And that is what we will continue to do.
Down the road, you will probably feel more gratitude than frustration when you remember that time you bought property in Colorado. There is always hope and opportunity in any market if you just keep swimming.