NEWS: A Buyers Market

The greater Albuquerque metro area has returned again to a buyers market. The homes in the upper end of the price ranges are really feeling the effect of the buyers market and the entry level homes are felling it much less. Because population growth is still strong and many first time home-buyers are taking advantage of the still very low interest rates, entry level homes (smaller homes with smaller price tags) are still selling very well and as long as the home shows pretty well and the seller’s are asking for a reasonable price, the homes are still selling pretty well.

Short Term Investors Selling
A second avenue to notice in what is happening with the current market is that many of the short-term investors are selling off the investment homes they purchased during the last few years. This has helped create the current buyer’s market. This is also having the effect of pushing up the cost of renting because there are less rentals available.

In all, we are seeing a healthy return to a buyers market after being in a sellers market for so long. Should potential buyer’s out there wait out the current market so they don’t buy something and have the price drop under what they bought it for? Short-term price decreases are always a risk in any real estate market. Because the prices have already corrected the risk of that is significantly less than if you had purchased last year. Over the long-run, prices generally increase significantly. With most, if not all, of the price correction already having passed, it may be time to look at that new home you have been looking at.

Use a Real Estate Agent
Be sure to use a real estate agent to help you so they can help you get your next home for the best price. It helps to have someone who spends full-time in the real estate market because they know the market and can help you get the very best deal on that home using their market knowledge to negotiate the price, and especially if it is a new construction home. If you were negotiating a very expensive business acquisition deal with another company and that company offered to let you use their lawyers to represent you, do you think you would get the best deal? Your own real estate agent will look out for your best interests and help you save the most on your next purchase. In just the past few months, In my own work as a real estate agent, I have helped save my buyers over $200,000 on deals using market knowledge to help my clients get the best price. Why wouldn't you want to use a buyers agent to help you in this great buyers market?

Jared Murphy
Associate Broker - Allstar Realty