Market Report April 2022
Being a buyer in today’s market can be a bit discouraging. You are that one more person trying unsuccessfully to squeeze onto the elevator before the doors close and take those lucky few up.
Some hold back because they see the rising costs; inflation, and interest rates going up and are concerned that what they are buying would be too overpriced and maybe this is a housing bubble that will pop! Those are understandable concerns which we will address shortly. But first, the painful news! The low inventory is a problem nationwide and locally we’re experiencing that on a daily basis.
If you had managed to buy a single family home last year in Moscow by April, you would have already gained equity as the average home sale price is up 28% in Moscow from last year! The age old adage that the best time to buy real estate is five years ago holds true.
So what about today? The Wall Street Journal ran an article earlier this week answering this same question on the nationwide level. That economist’s answer? Buy now. As long as you are able to maintain your monthly mortgage payments and don’t plan to move anywhere in the near future, real estate is a good hedge against inflation.
Locally in Moscow, we are continuing to see a strong market. But, is this a bubble that might pop? Historically, Moscow has been somewhat insulated from the more dramatic increases and drops seen elsewhere in the nation. With two universities located 8 miles apart, SEL, EMSI, and others, more and more jobs are coming to the area. The supply is most definitely our biggest challenge. Between January and April of last year, 53 single family homes closed in Moscow. This year, only 38 single family homes have closed in Moscow. The average list price on those homes went from $333,626 to $419,326 while the actual average sold price is $428,656 (that is the 28% increase referenced above)!
So how do you succeed? Step one; don’t get discouraged! But be ready to make a few offers (maybe many!) before you are the winning offer. Step two; be aggressive. Know your numbers really well. What is your ceiling? And at what price are you happy to lose out on the house? Be ready to move quickly and while you might pay more than you thought you’d have to, we’re still seeing that solid value. Plus it lets you get your foot in the door and begin building equity! 5 years from now, you’ll be able to look back and be so glad that you purchased today!
-KATHRYN CHURCH