It is an ongoing question, is the housing market in a bubble? If so, when will it burst? These questions are leaving buyers and sellers “on the fence” when it comes to buying and selling a home.
Timing is key in any real estate endeavour but the big question still lies on this, is it the right time to buy or sell a home? We agree with Real Estate expert Dave Ramsey on this one and here are our top reasons why we believe it’s a great market to sell or buy a home.
Don't feel like reading? Check out our latest Ask The Pro Market Update video.
Rising Prices are Setting The Bar
“I do not think this is a bubble,” said Dave Ramsey on The Ramsey Show when a caller called in to ask if he should buy a home in this current real estate market. According to Danielle Hale Chief Economist for REALTOR®.com, prices have been on the rise since 2019 and seem to continue to climb.
“Despite the pandemic-driven economic uncertainty that began in March, home values continued to climb every month of the year. Overall, 2020 saw a 12.3% increase in average home price compared to 2019,” explained Hale. It’s no wonder it’s a sellers market. Buyers are paying top dollar for real estate but the market doesn’t show signs of slowing down.
“They’re overpaying but are they? If enough of them are doing it, then that’s the new price,” Ramsey. So what does that mean if you are looking to buy a home? Why in the world would you buy at the peak of the market? According to Ramsey this may not be the peak but the new standard of pricing. Ramsey believes the craziness will slow but he does not think this is a false bubble.
Danielle Hale, Chief Economist for REALTOR®.com, anticipates that the increase in prices for real estate will eventually ease by the end of 2021 and end 5.7% above 2020 levels. “Decelerating steadily through the spring and summer, and then gradually re-accelerating toward the end of the year,” explains Hale.
Low Interest Rates
According to REALTOR®.com’s 2021 real estate forecast, home prices are expected to increase by 12% this year. Buyers are likely to continue to take advantage of low-interest rates, which are expected to remain relatively low as compared to average rates.
Ramsey explains it like this, as you step out of the market, everyday that you wait to get back in, the prices are going up for the rest of your life. Luckily as prices steadily increase interest rates remain low. “Buyers are likely to continue to take advantage of low-interest rates, which are expected to remain relatively low compared to average rates,” according to Hale.
Whether You Buy Or Sell, “It’s an even swap!”
If you are going to make a move in this current real estate market whether you are buying or selling, “it’s an even swap,” explained Ramsey.
It’s a simple matter of supply and demand when supply is low then prices drive up. “It’s a good idea to sell now and buy now,” said Ramsey. As home prices rise and buyers continue to pay the current market value listings aren’t lasting in this current market but if you sell and buy it’s pretty much an even swap.
You’ll Save Money In the Long Run
When interest rates are low you can only expect to save money in the long run. “A 1% difference in mortgage rate results in a monthly payment that's close to $100 higher. But the real difference is how much more you'll pay in interest over 30 years…more than $33,000,” Christopher Murray with Money Under 30.
While home prices are reaching new heights, buyers remain plentiful with these low mortgage rates. This keeps purchasing power healthy but with these low interest rates timing is impeccable.
Just because home prices are going up doesn’t mean they’ll depreciate, explained Ramsey.
Time is of the Essence
So whether you’re looking to buy or sell a home, time is of the essence. Contact Darin Marques, founder of the Darin Marques Group at Huntington & Ellis, Las Vegas to help you navigate this real estate market wisely.
If you are looking to sell your home then our team will help you take advantage of this sellers’ market and get your home sold for the price that you’re aiming for. If you are looking to purchase a new home then we can help you get the best deal on your dream home.
Contact the Darin Marques Group today at (702) 803-3527 or visit dmgluxury.com for more information.
For additional market information watch The Ramsey Show's.
