An unpredictable real estate market can put buyers in awkward position years or months after purchase. It doesn’t only happen because of a lack of knowledge, but because many factors influence the real estate market. Some of those are impossible to predict, which is why buyers can only hope for the best possible outcome in some cases.
While dealing with an unpredictable real estate market indeed isn’t easy; it’s not impossible either. However, you do need to know what you’re doing; but strong advice suggests that you work with a reputable real estate expert team who can help. Here’s what you need to keep in mind in today’s uncertain real estate market:
Consider the Local Market
Even though it’s good to be aware of the global state of the market, that doesn’t mean it’s trending will necessarily apply to where you live. Depending on your area, you might even want to look at city data closely.
In Southern California, sales of new and existing houses dropped by 11.8%, owing to record high prices. The general trends show that there are fewer affordable houses in Southern California, with the median price paid in June 2018 being a 7.3% increase over the prices just one year prior. At $536,250 according to CoreLogic, this median price can significantly impact your decision to buy or sell.
Take Your Time Making Decisions
Don’t rush into a decision just because you think you’ll be missing out on a great opportunity if you don’t act quickly. Make sure that it is a tremendous opportunity before you jump the gun — and, if you’re purchasing, don’t take a bigger bite than you can chew. In an unpredictable market, you never know whether now is the best time to make a move — you can only pinpoint the best time was after it has already passed. So make sure all your boxes are ticked when you’re choosing a new property or deciding to sell.
If You’re Not Sure If You Can Afford it, Don’t Buy
When you’re buying a home, it’s good to plan some financial wiggle room for yourself, as there can be unexpected expenses that could leave you scrambling to make your payments. Nobody wants this to happen, of course, but it does, and in an unpredictable market your planned expenses have the potential of skyrocketing. Having savings for financial emergencies is extremely important, especially when you have a mortgage to pay. Even if the property seems ideal and too good to miss, don’t go over your planned maximum budget as you might regret that decision.
Turn to Professionals
Making sense of an unpredictable market can be difficult and time-consuming. Having someone you can trust in your corner is invaluable in those circumstances. If you find yourself overwhelmed, turn to a professional team of real estate experts to help you. The Monica Diaz Team is among the highest-rated 5-star real estate teams, with years of experience and an impeccable sales record to prove it.
No matter what type of real estate market you’re in, it’s critical to work with a professional agent – one who has a proven track record of results. If you have a real estate related question, we’re here to help! Let’s Talk!