Balanced Housing Market: What Is It and Are We In One?
What if the housing market isn't a seller's market or a buyer's market?
Does that mean we're headed into a balanced housing market?
Lately I've been asked about another possible housing bubble. We have enjoyed a very healthy and fast-paced market for several years now in Florida.
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Prices are much higher than they were when this positive trend started, and that worries people because they naturally wonder how high prices can go before they start to fall.
Well, the short answer to that question is NO.
I don't think we're going to experience another bubble, followed by a crash like 2008 to 2011.
The market is different this time around, and lending requirements have changed.
What I do think is happening is that the prices and sales frenzy are slowing down, which makes it seem like the market itself is going down - but is it?
Think of it this way...
When you're in an airport on one of those moving sidewalks, you feel like you're really zooming along. All of a sudden you step off and it's like you're moving at a snail's pace. But, you are actually moving at a normal pace - it just feels slower.
That same concept is true for a housing market that's cooling off. When the market slows down, it's like stepping off the moving sidewalk. It feels like a big difference, but we're still moving forward, albeit at a slower pace.
And that's okay! I promise.
In the past two decades, we have become so used to unbalanced markets. First, we had the extreme seller's market in the mid-2000s, which quickly turned into a buyer's market by 2009. A few years of that led us to the seller's market we have experienced for the last couple of years. We've been riding a roller coaster!
But here's the thing: When it's a seller's market, they have all the power and buyers feel like the inferior party in the transaction.
When it's a buyer's market, sellers are tripping over themselves to attract buyers among a lot of competition.
For so many years, one party or the other has had all the power.
When inventory rises, but there are still a healthy number of buyers (which there are in Florida), the market balances and prices won't continue to climb at the same speed.
I realize you don't like to hear that your home value isn't increasing like it once was, but prices can't go up indefinitely. We all know that.
They either have to go down or slow down, and I'll take slowing down any day.
But here's the beauty of a balanced housing market - everybody has to do their part. Sellers who prep their home to perfection will benefit from more buyers wanting their home. Buyers who have been struggling to find homes will have a better opportunity to find the perfect one.
My advice as we go into the busy season of 2019 is to make sure you do your part in the transaction.
If you are the seller, make sure your house is prepped and priced near the current market value.
Watch my Home Selling Pitfalls video to help you!
If you are a buyer, get that pre-approval letter from your lender. Do your research, set your expectations realistically, and don't be afraid to make an offer when you find the right house.
It's been an interesting roller coaster of a housing market for many years, but I, for one, am looking forward to a smoother ride.
Happy buying and selling - thank you for watching!
With love, Melanie
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Melanie is a Tampa Bay area Realtor with Smith & Associates. She loves Tampa Bay area area, houses, and helping clients buy and sell real estate. She can be reached at 813-368-6084 or email@example.com
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