Christopher Shank NMLS 2562885

I tell you what- the weather forecast for this summer definitely held up; La Nina has driven some pretty interesting storms and hot weather our way. Also hot this summer- the housing market!

In the world of real estate, summers are traditionally the moving season of the year, and it makes sense why that is. Not only is summer PCS season for the military, but summer vacation makes moves possible without the major disruption that would come from a move during the school year.

Well, the summer is here and there’s no shortage of houses on the market. In fact, if there’s a shortage at all, it’s a shortage of buyers!

For the last several months, analysts have been forecasting an interest rate drop sometime this summer. Exactly how low those rates will drop (if they drop at all), is anybody’s guess, but this speculation has led a fair number of potential buyers waiting in the wings for a “favorable” shift in the market.

Now, if my high school economics class taught me anything, it’s that a low supply of something and a high demand of that thing puts all the power to the hands of the folks who have that thing. In this instance, you’ve got a large pool of houses on the market, but the crowd of buyers who would usually go for these houses are holding off while waiting for those magic rates. This has led to one strong buyer’s market where desperate sellers are letting their homes go for a fair amount under value.

Y’all know me- I communicate best with examples. I was talking to an investor the other day who is loving this market. He found a beautiful ranch, just outside of Hopkinsville. The house has been on the market for over ninety days, and the seller was getting desperate. End of the day, this investor managed to get a contract on that house for twenty thousand dollars under asking price, so long as he can close before the end of the month (definitely doable).

Anyway, I asked this guy why he wasn’t joining the rest of this summer’s buyers and watching from the sidelines. He calmly explained that he could wait for the market to drop a percent or two, but when it does, he’d have had to compete against all those buyers looking to find a home. Those of you who remember the buyer’s market of 2021 know what I’m talking about- five or six offers per house and the ones ultimately selected offered thousands of dollars over asking price. This investor decided that saving $20kright now beats the idea of saving a few extra dollars per month with a better rate, yet having to pay over asking for the same property. Besides, if rates do end up dropping, he can always refinance.

In my opinion, the key take away is this- there’s a lot of uncertainty in the air right now about the real estate market, but the situation isn’t bad at all. If you’re curious, ask an expert, like a loan officer or realtor, about their particular take on the situation. You might just learn things aren’t as grim as you think!