Buyers Demand In Real Estate This Year According To Nick Statman
Nicholas Statman says low interest rates are advantageous in that they result in more affordable homes and first-time home buyers are most likely to benefit from it.
You may know that there has been increasing demand in the real estate market, more so within the last two years. According to Nick Statman, low mortgage rates and shifts in people’s values resulting from the pandemic have also contributed highly towards it. For this reason, buyer demand is predicted to continue being high in many markets as we embrace 2023.
The level of Migration to the Cheaper Areas
Nick Statman observes the increase in buyer demand is the migration – both from rural areas in a particular state to urban areas in the same state as well as from one state to another. Some of the exciting trends include: A high number of buyers are moving out of high-priced coastal areas in the search for relatively cheap housing.
This has been due to the greater flexibility of work over the pandemic which has allowed for remote working opportunities. They are taking advantage of the flexibility of working from home, and as such, they are going for cheaper houses while ensuring their wages remain intact. It is focusing on competition in affordable areas, and the number of out-of-state buyers is increasing.
Ongoing Low Mortgage Rates
Mortgage rates have gone up from their historic lows in 2020 and 2021 but are still below the average rates that were observed in the past. This means that as of early 2023, the average interest rate for a fixed rate of thirty-year mortgage stands at about 6.5 per cent. This, in turn, results in a rise in buying power since the amount used to pay mortgages is reduced.
Nicholas Statman says low interest rates are advantageous in that they result in more affordable homes and first-time home buyers are most likely to benefit from it. Where there is stiff competition from other buyers, the buyer himself wants to latch on to all the available opportunities. One can say that locking in lower monthly payments before demand drops could provide purchasers with a competitive advantage.
Competing in Competitive Markets
This means that both supply and demand are low for today’s buyers, which equates to a highly competitive real estate market in the contemporary world. A key point that sellers should know is that they are likely to be presented with multiple strong offers as soon as they list their home. Potential buyers should brace for a battle in the auction, particularly on homes in prepared conditions for occupancy at appropriate prices. It is crucial to always be prepared and know your figures when dealing with everyone who does not entertain all cash offers or those who use escalation clauses. Buyers need to have a proper strategy on how they can outcompete other people since this is very vital when dealing with real estate agents.
Conclusion
Nick Statman says specifically, this year, the competition within the real estate market is expected to remain steep given the continued demand for buyers. They can slow down in price growth but the low available stocks will continue to exert pressure on the price levels. This is a clear message to alert consumers since they should be ready to compete for assets but know how much they can afford. As was seen in the paper, having an agent to help deal with the dynamics can prove fruitful towards homeownership even with the barriers that exist.