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Buyer Considerations – If You Think Homes Are Overpriced Now, Just Wait!

February 27, 2014 by Joe McAuliffe

2014 Buyer Considerations – If You Think Homes Are Overpriced Now, Just Wait!

A number of prospective home buyers still believe that homes can be purchased at discount prices. Unfortunately, this is usually not the case. In most price points, demand for housing increased dramatically during the past year, leading to an increase in prices and a declining inventory of properties for sale. What was once a strong buyers’ market has shifted to a market that now favors sellers. As the month’s supply of homes continue to drop even further below the 6 month normal, buyers are likely to find it harder to negotiate with stubborn sellers.

Although the new “sellers’ market” will frustrate many buyers, it’s actually encouraging news for home buyers. The risk of paying too much is no longer a major concern. Even if a buyer ends up having to pay a little more than comparative market value, the short term increase in prices should more than offset the extra cost. Also, the benefits of use can be enjoyed immediately and the selection of homes to choose from may never be better.

In actuality, the risk of having to pay a lot more for a less desirable home is far greater than any risk associated with overpaying. We recommend every buyer pay close attention to the trends associated with higher demand, declining inventory levels, and increasing prices.

Filed Under: Buyer Considerations, Cup O' Joe

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Managing Partner, is one of the top business consulting professionals in Florida. He has worked with Fortune Magazine, Oracle, Network Solutions, Computer Associates, and Lawyers.com. Some of MET’s current clients include Christie’s & Illustrated Properties, Coldwell Banker, Merrill Lynch, Smith Barney and Sotheby’s.
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