The Housing Market Isn’t Just One Market Right Now

If there’s one thing 13 years in real estate has taught me, it’s that there is almost never a simple answer when it comes to buying or selling a home.

I hear the same questions and comments all the time:

“I’m waiting for interest rates to come down.”

“There’s nothing good for sale right now.”

“Nobody is buying.”

“I’d love to move, but I have such a great mortgage rate.”

And I understand why people feel that way. There is a lot of information out there, and depending on what headline you happen to read that day, it can feel like the housing market is either completely stalled or moving at full speed. The reality is somewhere in between. There isn’t just one housing market right now. There are different groups of buyers and sellers, all with different financial situations, different goals and different reasons for making a move—or deciding not to.

And that’s why I think it’s important to look beyond the headlines.

Here are four of the groups I’m watching right now.

Cash Buyers Are Still Very Much in the Game

About 1 in 4 existing-home purchases are being made with cash. That’s a pretty significant number. Some cash buyers have built up substantial equity in another home. Others may be downsizing, moving investments around or simply have the financial ability to purchase without a mortgage. From a seller’s perspective, a cash offer can be attractive. Without a financing contingency, there may be fewer hurdles between accepting an offer and getting to the closing table. But here’s something I always remind my sellers: Cash does not automatically make an offer the best offer. When I’m helping a client sell their home, I want us to look at the entire offer—not just the purchase price.

What contingencies are included?

How much is the buyer putting down?

What is the proposed closing date?

Are they asking for credits? How strong is the buyer financially?

And how likely are we to actually make it to closing?

There are a lot of pieces to consider. A cash offer may be a great fit for one seller, while another seller may decide that a financed offer with a higher price and better terms makes more sense. The details matter.

Buyers Who Need a Mortgage Are Looking at More Than Just the Interest Rate

There’s no question that mortgage rates have made buying a home more challenging for many people. For some buyers, the monthly payment simply doesn't work at today's rates. Others have been waiting for rates to come down before they feel comfortable making a move.

But I don't necessarily think the only strategy is to sit on the sidelines and wait. There are other things to consider. Depending on the property and the seller's situation, buyers may be able to negotiate closing-cost credits or an interest-rate buydown. These strategies can potentially make a difference in the upfront cost or monthly payment. This is why I encourage my buyers to look beyond the rate itself. Instead of asking only; “What is the interest rate?” I want them to ask; What will my actual monthly payment be?

How much cash will I need to close?

What can we negotiate with the seller?

What does this home really cost me today?

And what happens if rates change in the future?

Because buying a home isn't just about the interest rate. It's about the entire financial picture. And everyone's financial picture is different.

Homeowners Are Feeling “Locked In”

This is another major factor affecting the housing market. There are a lot of homeowners who have incredibly low mortgage rates. If you bought or refinanced when rates were significantly lower, giving that up can feel painful. And I completely understand that.

If you have a 3% mortgage, the idea of selling and taking on a much higher rate can make you wonder if moving is even worth it. But here's something I tell people:

Your mortgage rate is only one piece of the equation. What else has happened since you bought your home?

Maybe you've built significant equity.

Maybe your income has changed.

Maybe your family has grown.

Maybe your kids have moved out.

Maybe you've retired.

Maybe you want to be closer to family.

Maybe you simply don't love the house anymore.

Your home needs to work for the life you're living now, not necessarily the life you were living when you bought it. That doesn't mean you should sell. In fact, sometimes running the numbers confirms that staying exactly where you are makes the most sense. But I don't think you should automatically rule out a move simply because you're afraid of losing your current mortgage rate.

Run the numbers first. Look at your equity. Look at your potential payment. Look at your moving costs. Look at your goals. Then make the decision based on your situation—not someone else's.

New Construction Is Bringing Its Own Set of Opportunities

And then we have new construction. Builders are competing for buyers, too, and depending on the community and the builder, there can be some pretty attractive incentives.

Buyers may see offers for closing-cost assistance, upgrades, appliances or interest-rate buy-downs. But just like when you're comparing resale homes, it's important to look at the whole picture. A builder incentive can sound great, but what does it actually mean for your bottom line?

What will your monthly payment be?

What are the HOA dues?

What are the property taxes?

What is included with the home?

And what will you need to spend after closing?

Landscaping? Window coverings? Appliances? Additional upgrades?

These are all things that should be considered when comparing a new construction home with an existing home. And I think existing homes sometimes have an advantage that buyers don't immediately think about.

An established home may already have mature landscaping, finished yards, window coverings, upgraded finishes and an established neighborhood. You aren't waiting for trees to grow or spending thousands of dollars finishing the yard. Sometimes new construction is exactly what a buyer wants. And sometimes an established home makes more sense. Again, it depends.

So What Does All of This Mean?

If you’ve made it this far, you may be thinking, Okay, so what is actually happening in the housing market? And my answer is: It depends. I know that's probably not the simple answer people want to hear. But it's the honest one. I don't think you can make a smart real estate decision simply by asking, “What is the market doing?” The better questions are:

What is your financial situation?

What are your goals?

What is your timeline?

What does your current home look like financially?

What would buying or selling mean for your monthly budget?

And what are your options?

This is where the teacher in me comes out. I've always approached real estate from an educational perspective. I don't want my clients to blindly follow my advice. I want them to understand why I'm recommending something. I want to sit down with you, look at the numbers, explain your options and answer all of the questions you have—even the ones you think might be silly. Because there really is no such thing as a stupid real estate question. Maybe after we look at everything, you decide it's the right time to buy. Maybe you decide it's time to sell. Maybe you decide to stay where you are. Or maybe you decide to wait another year. All of those can be good decisions when they're based on your individual situation. And sometimes, the best advice I can give a client is: “You know what? I don't think you should do this right now.” After 13 years in this business, I've learned that the best real estate advice isn't always the advice that leads to a transaction. It's the advice that helps someone make a good decision for their life.

That's what I want to do for my clients. Educate. Explain. Answer questions. Look at the numbers. Give you the information you need. And then let you make the decision.

Because at the end of the day, I'm not here just to sell you a house or sell your house. I'm here to help you make a good decision.

Hey Inland Empire, I’m Candice Newman! I’ve had the incredible fortune of being born and raised in this amazing community, and I couldn’t imagine living anywhere else. I currently live in Alta Loma with my husband, Jonathan, our son, Trevor, and our dog, Ruger! I’m a real estate agent with a passion for finding new places to explore in the Foothill Communities. When I'm not selling homes, you can find me cheering my son on at his baseball games, exercising, spending time in our local mountains, heading to the lake, cooking, or watching the Dodgers slay the Giants (I was born and raised an Angels fan, but the Dodgers have taken over the household!). I'll never have enough Mexican food and Italian food in my life. I’m looking forward to connecting with you soon! See you around town! Candice.Newman.Realty@gmail.com | (909) 367-3280 DRE: 01924842