Are we heading towards a sellers market?

Only time will tell if were heading towards a seller’s market.

Indicators show that at the very least we could be heading to a neutral real estate market.

Closed transactions in the Northeast have risen 12% compared to last year’s real estate market. The reason most believe this has happened is due to what was supposed to be the expiration of the tax credit for Nov.30th, which has now been extended to June 30th to close. With the tax credit extended you will start to see more home buyers looking to purchase before the expiration of June 30th.

Sales were up; however the median price on a home was 7% below last year’s values.
FYI-Real estate is local and the values could differ from state to state, city to city, town to town. I work in Westchester NY and we still have bidding wars going on. However the overall median price in the US is down 7%.

Housing inventory in the US average is at 7 months. This still teeters towards a buyer’s market. 6 months of inventory and it becomes a neutral real estate market, not favoring home buyers or sellers.

Once the Federal Reserve decides to start phasing out their investing into mortgage securities (which seems to be a probability) Interest rates hovering at 5% will not last, and you’ll start seeing them rise. The meeting for the Federal Reserve will be held in the spring.

According to real estate experts we have not seen a better time to buy. Interest rates are hovering at 5%, even dipping every now again, home prices are affordable and of course the first time homebuyer credit.

What does all this mean for the home buyer?
As prices begin to rise(which they have in different areas of the US), if the supply of homes for sale start to tinker at the 6 month mark( right now it’s at 7 months),if interest rates begin to rise, and the tax credit expires, you will have missed the best buyer market since the 1970’s.

Of course the Feds, could decide to keep rates low, who knows, the gov’t might decide to extend the tax extension, inventory on houses could rise(especially with the tax credit extended to current home owners), which would all favor the buyer.
What I do know is that we in a buyer’s market right here right now , don’t let home ownership pass you by.