In our last post we discussed how to figure out how much home you can afford. The next question to answer is, what will your money buy you? That all depends on the market that you’re in. The same amount of money may buy you a mansion in a rural area and a small apartment in an urban center.
Buyer’s Market vs. Seller’s Market
In addition to the location you’re looking in, the state of the market at the time you’re buying will also help to determine how far your money will go. Whether you’re in a buyer’s market, a seller’s market, or a neutral market will affect how far each dollar stretches. In a buyer’s market, there’s more inventory on the market than there are people looking to buy homes, pushing prices down. Your money will go further and you’ll have more options to choose from. In a seller’s market, there’s less inventory on the market than there are people who want to buy homes and the homes on the market can demand a higher price, squeezing your budget. In a seller’s market you may have to make a few different offers on homes before you can find the right fit. A buyer’s market is an easier deal.
The Local Harrisonburg and Rockingham Market
Take a look here to find detailed analysis of the local market, and enter your email below to subscribe to monthly market reports.
No matter the market conditions, there are always opportunities. Sometimes opportunities require the house to be renovated. There are loans to help with those costs. This can require a significant down payment but not always.
There are also areas where your dollar can stretch a little further. It just depends on what you are looking for. Some of these areas include Broadway/Timberville, Grottoes, Weyers Cave (Augusta), Massanutten, and Elkton.
After the market crash, the real estate market has been recovering. We are still seeing some lingering symptoms of this crash. However, the market has been steadily rising as well. In 2015, we do not expect to see the market make huge jumps in sales and price but will we see more inventory?
See this helpful infographic from the NAR: