The Fluctuating Housing Market and You

Reports came out last week that home construction in the U.S. is down by 14 percent. Several factors are to blame, but the most prevalent is that the recovery of the housing market is moving at a snail’s pace. In other words there are too many homes already available for sale and not enough buyers.

Weren’t they just saying a few months ago – maybe even in July – how the housing market was seeing an upswing? How is it that we’re here again? And what does all this fluctuating mean for you?

First, the Why

There are any number of factors that contribute to how well the housing market is doing, including:

• The Season – Generally speaking, home sell better in the spring and summer months because that is, ideally, when most people want to move. There are more buyers during these seasons, which means sellers will get better offers from interested parties.
• Construction – More new homes means more options for buyers to choose from.
• Lending Restrictions – There appears to be an increasing number of home buyers who think they qualify for a certain loan amount, only to find that they can’t. This leaves them buying smaller homes within their loan budget, meaning the larger, more expensive homes are left. 

For the Buyer

As a buyer in a fluctuating housing market, you have the advantage when supply outweighs demand because sellers get desperate and reduce the price in order to sell the home sooner. It also means that you have many more options to choose from and are more likely to find what you’re looking for in a home.

Then again, you may not be able to find what you’re looking for because in a slow moving housing market, the best homes tend to get swiped up quickly, leaving you to settle for a home that doesn’t quite hit the mark. But this is an opportunity that you can easily take advantage of if you’re able to visualize the potential a home has to offer.

If you can find a great deal – and typically you can these days because of the seller desperation – then you can make it your own quite readily with the help of a local contractor like Andy and his team. Outdated bathrooms in your dream home? No problem. HA Construction kind of specializes in bathroom renovation.

For the Seller

As a seller, you tend to benefit when the housing market is consistent, with supply and demand on a more even footing, and especially when there are more buyers than homes. Unfortunately, we haven’t really seen that much of a “seller friendly market” since historic 2008.

So, what can you do to make your home more appealing in a buyer’s market without plummeting your asking price? Make it more appealing to the buyer. This may take some additional investment on your part, but it may be worth it.

For example, let’s say you have carpet in your living room that, while not an eye sore, could stand to be replaced. You’ve resolved to leave that to the buyer, as is often the case. But in a buyer’s market, you’d see more success if you went ahead and replaced the carpet for them – because your providing incentive for the purchase of your “move-in ready home” over the house they saw that is also great, but needs more work.

Or, if your relocating for reasons like you’ve outgrown your current home or simply want something different, consider hiring a contractor to put on an addition or make changes so that the home you have is more you in the first place.

For the Contractor

You might be thinking that the contractor benefits regardless of the housing market’s condition, but this isn’t always the case. These days, a construction company has to show versatility in its services in order to keep work consistent. For example, a construction business that only does new construction could obviously be struggling with a 14 percent decrease in home construction around the country last month.

Whereas, a company like HA Construction, that provides a broad range of services from bathroom renovations to new construction… from commercial work to replacing windows… (and does a great job) will see success regardless of the housing market. Work may fluctuate as the housing market and seasons change, but consistency can be found in diversity.