IS NOW THE RIGHT TIME TO BUY OR SELL?
For Sellers
THE EQUITY PROPOSITION For the past several years, my guidance to homeowners considering a sale has been clear: sell only if you require the equity, have no intention of returning, or face a life event necessitating a move. While this remains the case for many, market dynamics are evolving, and I am increasingly optimistic that 2025 will present strong opportunities for both buyers and sellers. Late 2024 marked a subtle yet significant shift. Homeowners began moving not out of necessity, but in pursuit of a better living environment. The tolerance for homes that are “workable but inadequate” is wearing thin, and as a result trading activity is picking up. The combination of elevated mortgage rates and the price corrections that followed has effectively reset market expectations, allowing buyers and sellers to recalibrate. As this cycle progresses, transaction volumes are likely to rise, eventually driving home prices upward as demand strengthens. Is now the right time for you to make a move? If you are considering selling in the next two to six months, now is the time to start the conversation. A well-executed strategy— from meticulous planning to seamless execution—can ensure that the sale of your home is both strategic and effortless.
For Buyers
OPPORTUNITIES ABOUND While market headlines often focus on bidding wars, soaring sale prices, and frenzied competition, the reality in 2024 was markedly different. Buyers exerted greater control over negotiations than at any point in recent memory. Price reductions became increasingly common, and for the first time since the Great Recession, the sale-to- list price ratio dipped below 100%. Buyers remained disciplined, resisting the pressure tactics often deployed in more aggressive seller-driven markets. This shift in dynamics is expected to persist into 2025. Interest rates continue to influence buyer behavior, keeping some on the sidelines. However, the era of ultra-low rates is firmly behind us, and with mortgage rates settling into their new normal, home prices have adjusted accordingly. For those considering a purchase, the focus should remain on fundamental financial principles. Prospective buyers should assess their housing needs, ensure a solid financial foundation—including an appropriate down payment—and, most critically, be comfortable with the monthly mortgage obligation. Locking in a 30-year fixed mortgage remains one of the most effective long-term financial strategies. As income rises over time, fixed payments remain constant, building equity and insulating homeowners from inflationary pressures.
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