The most frequently asked question I get is whether it’s a buyer or seller’s market. The answer is not as straightforward as you may expect. Buyer and Seller markets depend on inventory, price point, and economic factors.
Right now, El Paso has over 3,000 homes on the market. About one fourth of these are between the $50,000 to $150,000 price range, one half between $150,000-$250,000, and one fourth are over $250,000. This means the most competitive market as far as inventory is concerned is at the $150,000 to $250,000 range. However, taking El Paso’s median household income into account of $42,000 a year, you can draw conclusions that the lowest bracket is very competitive for buyers snatching up lower priced homes.
Right now, something both buyers and sellers should pay particularly close attention to are interest rates. Interest rates rose in 2018 all the way through early 2019. The Federal Reserve backed off with the hikes in March. Buyers should take advantage of competitive interest rates because there is a greater likelihood that interest rates will rise rather than fall. Sellers should also take advantage of the fact that buyers will be more likely to qualify for financing.
In a healthy real estate economy, such as the one that exists currently in El Paso, both buyers and sellers can benefit. In today’s environment, real estate should not be viewed as a zero-sum game. We are in a win-win situation – Take Advantage!