Our Realtors Can Help You Figure Out If Now Is a Good Time to Buy or Sell a Home in Kodak, TN
While there are a variety of personal considerations to remember and factor into your home buying or home selling decisions, you will also need to keep in mind that one major consideration applies to both home buyers and sellers: is Kodak a buyer’s or seller’s market?
If you are not aware, the real estate market fluctuates between favoring home buyers and home sellers. Even when the market is neutral, it will still lean slightly toward one side or the other. Depending on your specific situation, you will know if now is the right time for you to buy or sell, and this will play a major role in your decision-making process.
Over the last few years, you may have noticed that the real estate market has been solely in the favor of the home seller rather than the buyer. There was a dearth of homes for sale throughout the country, buyers were plentiful, and the prices were at an all-time high.
Now, the market is changing and cooling. The National Association of Realtors has reported that pending home sales around the country have dropped.
Differences Between Home Buyer’s Market and a Home Seller’s Market Explained
The first thing that you need to know and understand is the difference between a buyer’s market and a seller’s market. It all comes down to a basic concept of economics: supply and demand. Depending on the circumstances of the area in which you live, supply and demand can vary, and this will be the determining factor when it comes to your ability to buy or sell a home successfully.
Home Buyer’s Market
When the real estate market is in favor of home buyers, the primary factor that determines this is the supply of homes in the area. If it is a home buyer’s market, that means the supply of homes outweighs the demand for them. With a surplus of homes, buyers will have their choice of what they consider the perfect house for their families and can usually get a great deal without going over their budgets or paying the full asking price of the home sellers.
Home Seller’s Market
Conversely, the opposite is true for a home seller’s market. In this case, the supply of homes is low but the demand for them is very high. This gives sellers the advantage, and they will often end up with multiple offers for their homes, all over the asking price.
Knowing the current state of the real estate market is critical for anyone thinking about buying or selling a home in Kodak, TN. You will need to know if you will be at an advantage when it comes to making an offer, negotiating, and closing the deal. So, is Kodak a buyer’s or seller’s market?
Is Kodak a Buyer’s or Seller’s Market?
Having fully discussed the real estate market and its terms as a buyer’s or seller’s market, we now feel confident to get specific. We want to answer your question: is Kodak a buyer’s or seller’s market as of October 2022?
According to Rocket Homes, the real estate market in Kodak, TN, remains in the favor of sellers. Those who are hoping to sell a home in Kodak should be quite happy about the current state of the market and the potential to successfully sell a home. To be specific, homes in Kodak are selling at 21.9% more than they did one year ago in October 2021. There are 10% fewer homes available for sale from September to October 2022, and the number of homes sold in that time remained consistent, neither rising nor falling.
However, one piece of data that may seem a bit counterintuitive to it being a seller’s market is that 90% of homes sold recently have sold under asking price. If you are hoping to sell a home in Kodak in this current real estate market, it is critical that you understand how the market trends will affect your transaction. The Rocket Homes analysis has the market in favor of sellers, but it is not firmly in that direction, and this coincides with the recent trends of markets transitioning toward the home buyer’s favor.
Because of inflation, interest rates have increased dramatically and the Fed has also increased mortgage rates. In fact, they have pushed mortgage rates to over 7% recently in an effort to counteract the continually rising economic inflation. This means that monthly mortgage payments will be higher for new home buyers, and they are beginning to put their home searches on hold until the interest rates return to a normal level.
Our Kodak Real Estate Team Can Help You Buy or Sell a Home
Are you a home buyer or home seller in Kodak, TN, and want to make sure you get the most out of your real estate transaction? Then it is important that you make sure the current real estate market is in your favor before you list your home or make an offer. With the current trends in the industry, right now is a great time for home sellers to maximize the profit on their investments but home buyers should also be paying close attention to those changes.
If you are ready to buy or sell a home in Kodak, TN, be sure to contact Your Home Sold Guaranteed Realty – Kings of Real Estate Team to get all of the details you need to start your real estate journey. Our realtors are here to make sure you are able to sell your home fast and get the highest possible price, and we can also ensure that home buyers are able to get the best price on the home of their dreams.
We are waiting to hear from you and are excited to assist you with everything that needs to be done to finish your real estate transaction. Call us now at 865-830-3908 to begin your real estate journey!