The Houston, Texas, real estate market is just like any other market out there. It’s always been influenced by the forces of supply and demand. If you’re a buyer or a seller, you’ll know what market you’re about to trade in by studying the trends.
One common question that We Buy Fast Houston Houses is often asked by different sellers and buyers in Texas is, “Should we buy my home in a seller’s market or just chill until buyer’s market comes around?” Before we give you an answer, let’s first talk about the seller’s market.
What’s a seller’s market?
In real estate, a seller’s market occurs when the home demand exceeds its supply. What that means is, nearly all buyers are willing and ready to make an offer for what the market has to offer, but the available housing inventory is insufficient. Anybody who’s ever traded in a seller’s market will tell you this market normally results in multiple offers being made on a single property, hence leading to bidding wars.
A buyer’s market is the complete opposite. The homes available for sale will exceed the number of homebuyers. And since the demand is low, get a great deal is pretty easy.
You can learn a lot about the real estate market just by looking at the sales-to-new listings ratio. In fact, this is one of the indicators that We Buy Fast Houston Houses takes into consideration before buying or selling homes in Texas. Comparing the number of sales in the real estate market to the new listings will give you an idea of how badly your property is wanted by buyers. In a seller’s market, the ratio will be 3:5. That means there will be two or more sales for every five listings.
The MOI (Months of Inventory)is yet another indicator that a real estate investor in Houston, Texas, can use to tell whether they are about to trade in a seller’s market or not. MOI is the rate at which my house is selling in the current market. The seller’s market should have an MOI of four months or less. Therefore, if there are homes that have been on the market for more than four months, that’s an indicator that the housing market favors buyers more than sellers.
Should we buy my Houston, Texas, home in a seller’s market?
You’ll have to believe in yourself before buying my home fast in a seller’s market. It’s an intimidating idea, and that’s why many buyers prefer waiting for better conditions. But that does not mean that you cannot get a great offer. If you find those property prices too high, or if you’re not ready to face such a competition, reach out to We Buy Fast Houston Houses.
Buying from We Buy Fast Houston Houses is a great idea because:
- You get to buy affordable homes
- All the closing costs will be taken care of
- You won’t have to think about the paperwork
- And, there’s no real estate commission
So what do you think? Are you going to go for it or wait for a buyer’s market? reach out and let us know.