By Miguel Fernandez
The real estate market is very volatile, and now we have a taste of that. I remember when 2021 started, real estate prices were on the rise mostly due to the lack of inventory. I have always said that once homeowners realize how much money they could get for their homes, they were going to start putting their homes on the market. Inventory increases as groups of investors cash out on a hot market, large numbers of owners use this market as the perfect time to sell and prepare for retirement, and unfortunately, the truth is that due to COVID lockdowns, stay-at-home orders, and mandatory work-from-home mandates, a sizeable percentage of couples came to the ultimate decision to end their relationship and sell their matrimonial home.
While sales in March were particularly good, April is showing less buyers and lesser multiple offers which means more houses for sale giving buyers more options to choose from.
A couple of months ago almost any home sold within days with multiple offers. Now it seems only very well-prepared properties are selling fast with more homes staying on the market for weeks with no offers.
The spring market started in winter and now is slowing down. Government threatens to intervene in order to contain the rise of real estate prices with measures like taxes on capital gains for principal residences and the recently announced tax on vacant homes. Such threats are making buyers more willing to wait to see what is going to happen to the market so they can buy at a lower price - hopefully.
Well, the real estate market is balancing itself; if you have not sold and you need to do it, do not wait anymore. If you are planning to buy, you can start sharpening your teeth, prices are going down and competition is getting less tough.
How low are prices going to get? I do not think they will go down more than 10%. Real Estate prices will grow slower and only well prepared and marketed homes will sell for top price. Now is more important than ever to hire the right real estate professional to sell or buy your house.
Remember that sometimes the key to happiness in finding the key to the right home.