As I reflect on the past few years, January has typically been a slow month for my business. I even shared this concern with my previous business coach and set a goal to make January a busier month. Little did I know, it wasn't just my efforts; it was the market that surprised us all! Last month, there was an unexpected surge in demand, resulting in multiple offers on most of the deals I worked on. It's been a unique and challenging landscape, to say the least!
I think the most interesting take away from the recent demand increase was the fact that interest rates have not dropped back to artificially low levels but rather they have leveled out for long enough for potential buyers who were waiting on the side lines, to re-enter the market or enter the market for the first time. Unfortunately for buyers, other buyers have come back at the same time, when one person has an idea, it's often not just you thinking about it. For sellers, you're making a great return on your investment again!
In the midst of this bustling market, I've noticed a pattern that I believe holds great potential – off-market properties. They are hidden gems, accounting for 2 of the 4 deals I put under contract/secured last month... should we say 50%? Now this is exciting and great for those buyers but not all sellers want to miss out on the potential audience the market offers, especially as we get back into the territory of multiple offers here in Bend.
Let me share some insights into what's been happening in the real estate world and how it might affect you. For buyers stepping into the market in February, it's been a rollercoaster of intense competition, I see this continuing. Multiple offers on homes have become the norm. The high demand, combined with limited inventory, has led to bidding wars, often resulting in homes selling above asking prices. My advice: shop well under your top end budget and be that aggressive buyer to win the multiple offer scenario!
Now, about those interest rates – they're a bit of a double-edged sword for buyers right now. On the one hand, the current (slightly more consistent) interest rates that are lower than in October, make homeownership more tempting, but they also contribute to higher demand in the marketplace. Navigating these rising costs requires careful financial planning to ensure a sustainable investment, buy the home that you can afford and that you like, do not be a slave to your mortgage!
On the flip side, sellers are currently in a sweet spot, enjoying the benefits of a robust market. The high demand and multiple offers allow them to secure favorable deals, maximizing their return on investment. However, here's an interesting twist – some are considering waiting until closer to the election for potentially even better returns! Heads up, this spring will likely be crazy busy! Speaking of the election, traditionally, election years bring tons of movement to the market with the goal being to bring a stable and thriving economy, & impacting interest rates.
Navigating this real estate rollercoaster in January '24 was both challenging and rewarding. For buyers, it's crucial to weigh the implications of interest rates and competition carefully. Meanwhile, sellers have a unique opportunity to capitalize on the current market dynamics.
As someone who shares an interest in real estate, I encourage you to do your own research and form your opinions, this is just my boots on the ground perspective. Keep in mind that opinions can evolve as more information and experiences unfold. If any of these topics resonate with you or if you want to dive deeper into the details, feel free to give me a call or shoot me a text.
