Is it a bad time to buy or sell a home? What millennials, baby boomers should consider

This real estate column is written by a rotating schedule of local agents who are interested in answering questions from readers about the housing market. Want to contribute a column or join the schedule on a regular basis? Please email alexis.krell@thenewstribune.com.

Question: Is it a bad time to enter the real estate market?

Do you feel like you are hearing a different answer to that question from everyone?

You are. The media, economists, Realtors, lenders, and then of course neighbors and friends. The list goes on.

Do you know why you will continue to hear different answers to that broad question? Because real estate is situational. It will never be the perfect time for everyone. The question is if it’s the right time for you?

There are a few situations that I think make this a great time to list your home and a great time to buy.

Baby boomers:

1. Are you still sitting on a ton of equity in your house but you don’t necessarily need all that space?

2. Have you been waiting to cash in but you felt like you didn’t have anywhere to go?

This is your chance. You’re the largest demographic that owns your home outright or has very little debt, and you are also the only demographic that will be downsizing and spending less on your next home. This equates to two wins for you in this market:

1. The rates mean little to you or nothing at all.

2. You may be able to negotiate your desired smaller footprint with less competition in the buying pool.

Millennials are a larger demographic and they’re about to start growing their families and need more bedrooms, yard space, bonus rooms and dining rooms. Baby boomers have all of that.

I understand interest rates doubling in a year isn’t a good look. It’s difficult to imagine what you could have had, but there are a few situations that might make this the best time to buy.

First-time home buyers: You are the luckiest first-time buyers in five years. This is the only time in a long time that you can negotiate with the seller.

For example, a 2-1 buy down is when the seller pays to buy down your interest rate. With others getting out of the market because of fear, there’s an opportunity for you to capitalize.

As a first-time home buyer you likely won’t have an abundance of cash to fix neglected maintenance items found during your inspection (the inspection you would have likely had to waive six months ago).

Now’s your chance to have the seller fix them for you. Also keep more money in your pocket by asking the sellers to pitch in on closing costs.

Jennifer Hawkins is a third generation REALTOR who has worked in Gig Harbor for 21 years. Hawkins served as president of the Women’s Council of REALTORS in 2019, and was treasurer of the Tacoma-Pierce County Association of REALTORS in 2021.