Hot Housing Market

“Hot housing market” is a term you hear often in the real estate industry. But what exactly is a “hot housing market?” What does it mean for buyers and sellers? If you can’t answer these questions, you are in the right place. Let’s explore what this phrase means and what implications it has for those in real estate.

What is a “Hot Housing Market?”

A “hot housing market” is one where homes sell quickly, and often for a top-notch price.  Basically, it is a market defined by high demand and low supply. Additionally, there are other factors that contribute to hot housing markets like lower interest rates that spur an influx of buyers, or more financing options that make homebuying more accessible.

Sellers at an Advantage

In these situations, sellers typically have an advantage at the negotiation table (if there are negotiations at all). This is because the demand for homes is so high, and sellers often see multiple offers. With more than one offer, the seller can offer the buyers less, opt not to negotiate, and sometimes even forego repairs.

Buyers at a Disadvantage

Unfortunately, this simultaneously means that a buyer will be in a disadvantageous position. With a high demand for homes, “hot housing markets” can be quite competitive for homebuyers. Buyers have less room for negotiation. They may also have to accept less in terms of repairs, included appliances, and other offerings like home warranties or concessions.

How to Navigate a Hot Housing Market

Hot housing markets can seem intimidating, but there are a few ways to navigate them as a buyer. First, time is of the essence. Buyers must be quick to view any homes they are interested in. They also need to be quicker in making decisions and preparing offers.

Offers in this type of market should always ben strong enough to stand out among the competition. They may require buyers to decrease their due diligence amounts, earnest money amounts, and offer price.

In a hot housing market, buyers are less likely to secure the first home they put an offer in on. Buyers may need to make multiple offers before going under contract. An experienced realtor, speed, and patience are required for buyers navigating this fiery market.

What kind of housing market does North Carolina have?

Spring 2022 was a blazing hot market in the Wake County area of North Carolina. The lower interest rates gave many buyers a prime opportunity to purchase a home, creating a higher demand for real estate. However, the supply did not meet the demand, and created a situation defined by bidding wars, extremely high due diligence offerings, and almost zero negotiations. The sellers were in the driver’s seat and the buyers were simply along for the ride.

So where are we today? In 2023, the Triangle area was still recognized as one of the hottest housing markets in the United States. Recently, a report from U.S. News & World Report identified Raleigh as the 2nd hottest market overall, with Durham as #4 and Charlotte as #5. Basically, North Carolina is still booming

Despite higher interest rates and less affordability, North Carolina still remains a popular place in terms of home desirability. Factors such as low unemployment, job growth, and optimal opportunities for investors contribute to North Carolina, and especially Raleigh, topping the hot housing market list.

Housing market predictions

There is a lot of indication that inflation is lessening and that interest rates will be falling in 2024. This means that more buyers who have been sidelined for a while might take advantage and join the hunt for a house. If the supply of homes doesn’t increase simultaneously, we could see yet another spicy market with sellers at an advantage.

One of the most thrilling things about being part of the real estate market is that it is constantly ebbing and flowing. As we move into the spring season, a time where the real estate market historically picks up, we are left to wonder, will we once again see a “hot housing market?” Only time will tell! Contact me if you are looking to get into the real estate game as a buyer or a seller this spring.