In a market that’s seen extreme temperature shifts in the past years, first-time home buyers may be wondering if the time is right to make a bid on their dream house. Cranston-based Century 21 real estate agent Elijah Riley is here to help with insider information to inform that big decision by answering a couple of commonly asked questions from new home buyers.
Q: What does the market look like right now?
Riley: In my professional opinion, the market has shifted and cooled down from previously being historically hot. While we were seeing 15-25 offers in a competitive bidding war on properties before, now we’re only seeing 3-5 offers on houses. We’re still in a seller’s market with higher list activity than normal considering the fall/winter season, but transitioning into a more balanced market. Buyers looking for a house now should feel assured that they won’t be entering the wild wild west.
Q: What would happen if I bought a property for $380K now and in 1-2 years from now, the house is worth $340K? How does that affect me as a homeowner who bought higher rather than at a lower price?
Riley: This is a great question! Because demand is greater than supply, this sets a precedent for home values we’ve never seen before. Once a market like this cools off, which it eventually will, values will balance out; in real estate, just like any other asset class, you’ll see highs and lows. If this is a long investment for you, I’d wait to sell until the home values balance out to the price you bought it for or exceed that price. If you update and maintain your property, its value will always go up in the long run – it’s just a matter of when!