For several years now we’ve all been aware that it has been a “seller’s” market. Home sellers have been able to get their asking price, close to it, or even in some cases above it for a while. Is that changing? Are we seeing more of a return to a balanced market? Is it shifting even further into a buyers market? Is it a good time to be a home buyer? I believe the answer is more of a balanced market and that it is becoming a better market to be a home buyer!

Why a Balanced Market?

501 D V Circle

We aren’t in a completely balanced market yet but things are certainly moving in that direction and the market is moving more in favor of buyers. That’s great news if you’re thinking of buying a new home! Home builders have been steadily increasing the supply and more homeowners have been selling their homes which has made the selection of available homes better for home buyers in Middle Tennessee.

Home prices have gotten much higher than they used to be but we are beginning to see a stabilization in those prices and less of an increase. In many cases sellers are getting a dose of realty and realizing that they just can’t “print money” with their home. If a buyer can’t afford it they won’t buy it and will move to another area with their search.

Because interest rates are still at record level lows it improves the affordability of homes. In most cases these days it is cheaper to buy a home than to rent one! A $250,000 home with a 3.55% with 20% down mortgage will give you a payment just over $900. Even with taxes and insurance added in the total payment is still at $1250. The same home would be a $1500 rental. The home is also the better investment (unless your situation requires the rental) since you are accumulating equity through payments and appreciation.

Is Fall a Better Time for Buyers?

Fall could really be a great time for buyers to buy a new home. Fewer people move in the fall which can lessen the available homes to choose from however it also means less competition for the homes! Buyers also have a better chance at making a deal with the sellers since the homes do stay on the market for a longer period of time.

As always if you need help analyzing the pros and cons of real estate in your situation give me a call. There’s no obligation, just information. 931-808-6808.

 

Dave Townsend, REALTOR®

EXIT Realty Tristar

 


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