The Buyer’s Guide to a Fluid Home Market

Real estate can be difficult. Bounces and dips tend to happen year by year in the home market, but they can also happen overnight. And, without warning at times. Scary, right?

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So, how do you best navigate in the fluid house market? You can start by reading this buyer's guide for real estate! This buyer’s guide for real estate will cover:

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• What a fluid home market is
• The various phases that a fluid home market can experience
• The best practices for navigating a fluid home market

What is a Fluid Home Market?

The keyword to understanding a fluid home market is fluctuation. Like a river that ebbs and flows, the home market is susceptible to change at any given time.  For instance, we’re currently in a hot seller’s market where demand outpaces supply. But, the home market won’t be in this state forever. Sooner or later, the home market will shift in another direction due to factors or other trends.

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Defining Various Home Market Phases

If the home market always fluctuates, why study the various phases? It’s important to study the phases of the home market so that you know the right time to strike. 

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Maneuver right, and you’ll be economically rewarded. For buyers, you’ll be able to snag up a home for a fraction of the price it would have originally been worth. For buyers, you can make easy money if you sell during times (like right now) when homes increase in price. 

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Here are different phases of the housing market to consider:

Volatile Home Market

A volatile home market is characterized by sudden and unpredictable short-term price movements. This type of housing market is most often caused by isolated events (e.g. political unrest, the announcement of new government policies, etc.). A volatile home market often coincides with the rest of the economy as well.

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If you find yourself in a volatile home market, we advise that you tread carefully but keep your eyes open for opportunities. Who knows? The deal of a lifetime might appear at your doorstep.

Hot Home Market

Also known as a seller’s market, a hot home market is one where there is both a low inventory of homes combined with many buyers eager to buy. A hot home market is typically characterized by a gradual increase in median home value and higher closed sale rates. Listings disappear in days, and buyers will often enter into bidding wars to compete for that much-desired home. 

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Right after the pandemic, the housing market was as hot as can be and overwhelmingly favored sellers.

Cold Home Market

Also known as a buyer’s market, a cold home market is one where more homes are available for sale without a lot of buyers being interested. As the name implies, a cold home market is the opposite of a hot home market. 

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While home values don’t necessarily drop, it does become easier to negotiate with sellers. Houses tend to stay listed for longer amounts of time, and bid wars are less frequent. There will also be more options for buyers, and they’ll be more likely to find the perfect home for them.

Best Practices for Navigating a Fluid Home Market

Whether you’re dealing with a volatile, hot, or cold home market – there are certain best practices that you should be considering. This section of our real estate buyers guide will highlight the tips that’ll come in handy in fluid housing markets:

Tip 1: Know Which Home Market Phase You’re In

You’ll need to create a game plan based on whether you’re dealing with a volatile, home, or cold home market. Take time to read up on the housing market and consider the input of professionals who’ve been in the industry for centuries. Our dedicated team at LendPro Mortgage can help. 

Tip 2: Be Patient

It’s frustrating for sellers and buyers alike when the home market doesn’t cooperate with their interests. While you may feel desperate, don’t make a decision that you'll regret. Focus on what you can control, be patient, and know that everything will come to you with time.

Tip 3: Find an Experienced Real Estate Agent

When in doubt, it’s always a good idea to reach out to a professional. Experienced real estate agents have personally helped clients find their dream deals in all different home market phases. They can offer the most suitable advice, and point you in the right direction.

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Tip 4: Be Ready

When markets are in flux like this, it is imperative that you’re ready and in a position to offer. Contact us today at LendPro Mortgage and we’ll get you ready!