We may be in the midst of a shift from a seller’s market to a balanced market.
MINNEAPOLIS, MN - 11/15/2018 (PRDistribution.com)
The luxury of being in a seller’s housing market may soon come to a close. The main signs that are pointing to the shift to a more balanced market includes the increase of 30 year mortgage rates, the amount of mortgage applications going down, and pending home sales dropping.
According to Bankrate, a consumer financial services company, mortgage rates have been on a gradual rise for more than a year, with the 30-year fixed mortgage rate sitting at 5.10% a week ago.
CNBC also reported in late October that the volume of mortgage applications is down 16% from the same time last year, as recent swings in the stock market have continued to deter homebuyers. Furthermore, the National Association of Realtors has been following along closely with the pending home sales and found that August was the fourth month in a row with a decrease in pending home sales.
So, what does this mean for those trying to sell homes now?
Well, it's going to continue to get tougher and tougher to sell as the market becomes more balanced. As a result, many people who are trying to sell homes are turning to quick home buyers, especially as the winter months begin to settle in (when home buying really takes a nosedive). Companies who specialize in buying homes fast are starting to become more and more prevalent with the housing market’s shift.
“While you can sit around waiting to sell your home, we come in and offer people a way out, especially if they are looking to sell quickly,” says Jaden Ghylin, co-founder of Minnesota Home Guys, a quick home buying company, “When home sellers start to get worried, we offer a fast solution where they can get rid of their homes for a fair price,” continues Ghylin.
Businesses like Minnesota Home Guys are able to incentivize home sellers to use their services over a traditional realtor by paying for closing and repair costs, as well as offering an immediate cash offer.
While these ‘cash for homes’ businesses used to cater mostly to people going through divorce or bankruptcy, many are turning to them because they’ve either been caught in the stagnant market, or don’t want to deal with waiting for a potential buyer. As the year progresses, especially in the winter, look for more people to do the same.