Timing the Real Estate Market in St. Louis

Have you heard that now is a good time to sell due the housing shortage? Let’s explore. One problem with attempting to “time your purchase” is that no one can accurately predict the future. Is now better than later or even next year? If the economy is improving maybe it’s better to wait to get a better offer. Challenging the decision to buy/sell and when, are the issue of interest rates. Interest rates are at an all -time low now and thus make it attractive to invest in real estate.

So what’s in store for the housing market?  My Verdict is… Don’t wait!

According to Dean Baker, Co-Director, Center for Economic and Policy Research, mortgage rates are expected to be higher at the end of 2013 than at the beginning of the year. That's the consensus among mortgage experts whose opinions were solicited at the end of 2012 by Bankrate.com. “I would expect mortgage interest rates to gradually edge up over the course of 2013 so that they are around 3.8% by the end of the year. This assumes that growth stays more or less on its current course, averaging around 2.5% for 2013. If this ends up being the case, people who are in a position to refinance their mortgage should try to do so now. In all probability, they will be looking at higher interest rates next year.”

An interesting evaluation by leading banking experts can be found by reading more:

Today is a fantastic time for first home buyers. Homes are moving more quickly and buyers who are pre-approved and ready to place a firm offer will be more successful finding their ideal home. Waiting for the spring market does increase the home availability, but a pent up demand could cause you to pay more. As more homes come on the market, so do more buyers. As stated earlier, interest rates are expected to go up and other changes to FHA loans can reduce the amount of house a buyer can afford. It’s still a great time for buyers as home prices are fair and rates are still low.

Buyers who already have a home usually must sell it in order to buy their next one. If a "move-up" buyer wants to buy a home during a depressed market, that means they usually have to sell one during the slow market, too. If a seller wants to sell his home to take advantage of a "hot" market when prices are fairly high, they generally have to buy their next home during that same hot market. It tends to equal out. We are hearing and possibly witnessing a major shift from a seller’s market to a buyer’s market and vice versa.  

Today the market is good for both the buyer and the seller in different ways. Rates are still low and homes are selling at a fair price for most home sales. A buyer can still request closing costs and other extras, but seller can expect to get offers closer to asking price (if priced right) than in the last several years.

And most importantly, sellers are selling more quickly than in recent years. This reduces the stress of the process while freeing you up to make those firm offers to compete with those first time buyers!  So what are you waiting for?

Call a Realtor NOW to learn how the conditions of this current market can help you!

Beverly Taki is a Missouri-licensed real estate broker who has successfully represented clients for 25 years.  

She is a broker salesperson at Keller Williams Realty St Louis. 10936 Manchester Road, St. Louis, MO   63122. 314.677.6366

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