Accent Realtors

Key Takeaways:

• There’s goods news on the horizon in 2023 for home buyers and sellers
• Look for shifts when it comes to home prices, inventory, and interest rates
• Make a smart move by contacting us today to plan and strategize!

The COVID-19 pandemic ushered in an era of unprecedented milestones in the housing market. From the lowest interest rates in history to record amounts of equity, the last few years in the real estate market were anything but ordinary. However, as economies work on finding a middle ground, homebuyers and sellers can look forward to a much more familiar market in 2023. Let’s take a look at what we expect to see this year, so you can start thinking ahead to make your move.

Expect a bright spring for the national real estate market

The current inflationary pressures are expected to ease, especially by the spring of 2023. The recent string of the housing market favoring sellers will start to wane as slight price adjustments and an increase in inventory bring balance. Supply chain issues caused by the COVID-19 global pandemic are easing and will continue to improve throughout the year. And, the overall sentiment of the housing market will improve as we move away from those historic year-over-year comparisons that distort decades of housing market data.

What homebuyers can expect from this year’s market

As the market continues to balance, there will be an increase in the number of homes available for sale, with estimates at around 23% more inventory. Younger generations are planning to enter the housing market—many for the first time. A recent survey indicated that 79% of Millennials and 84% of Gen Z plan to buy a house in the next few years. Interest rates are forecast to come down nearly two percentage points from the recent high of 7.12% to a more standard 5.25% by the end of this year, according to Bankrate. This will help fuel movement among homebuyers, who are also enjoying a strong job market. Despite high-profile layoffs primarily in the tech sector making the news, the overall unemployment rate is expected to stay at a low 3.6%.

What homesellers can expect from this year’s market

While the Fannie Mae Home Price Index (FNM-HPI) expects home prices to decline this year—it’s only by a modest 1.5%. While a “decline” can sound disappointing, since the COVID-19 pandemic in 2020, the median home listing price is up 27%, adding more than $9 trillion to the total value of the US housing market. And, despite the recent dip in home values, homeowners that purchased before February 2020 are still up an average of $92,000 in equity, according to real estate experts Black Knight. This provides homesellers with some flexibility in the listing price, allowing for a faster sale if you’re willing to price your home competitively. It’s important to keep the last several years in perspective in order to maximize those returns and put your investment to work for you.

Talk With Us About Your Real Estate Goals

While the real estate market is always in shift, ultimately, buying or selling a home is more about what’s right for your lifestyle each year. And with a more egalitarian market expected in 2023, both homebuyers and sellers can expect to make beneficial deals. The best way to get started is to contact us. Our team has experienced countless shifts in the market, and we’re backed by the latest data in your local area to help you find your dream home!

Key Takeaways:

• Low default rates are a positive sign of the housing market’s resiliency  
• There are signals that the market is shifting to favor homebuyers
• Our team is ready to help you achieve your goals, so contact us today!

As with any investment, the best time to buy is when prices are low. It’s no different when it comes to real estate. With one historic and unprecedented event after another these days, knowing when to move in today’s market can be complicated and intimidating, but it doesn’t need to be.

Analysts agree about where the market is likely headed. So as 2022 winds down, let’s review the latest news to help you better understand where your opportunity lies (and why now may actually be the best time to buy!).

Low loan defaults are keeping the housing market healthy

The current housing market is not a repeat of the previous financial crisis in 2008. The two primary factors that contributed to the housing market crash back then were cheap credit and lax lending standards. Remember the terms subprime, mortgage-backed securities, CDOs, and adjustable rate mortgage? Thankfully, that’s not what’s making headlines this time around.

Today, lending standards are more strict than they were 15 years ago, and because of this, most homeowners are not teetering on loan default like they were back in 2008. In response to the global COVID-19 pandemic, banks introduced various programs to help homeowners stay current on their mortgages and avoid default. The result is historic mortgage balance lows, with loans that are 90 days past due pegged at just 0.5%. That’s a far cry from the staggering 11.36% rate back in 2010 when homeowners struggled to make payments.

Economic signals indicate this is becoming a buyer’s market

Putting today’s housing market in proper historical context is paramount to making an informed decision. While the current 7% mortgage interest rates are certainly higher than the pandemic-induced low of 2.65% in December 2020 (the lowest in history!), that doesn’t mean you should avoid buying a home. Compared to the all-time high of 18.45% set back in 1981, today’s average rate of 7% is suddenly far less imposing. 

Experts all agree: home equities are going to decline. The only dispute between analysts is by how much, with some analysts projecting an average decline of about 20%. According to Black Knight, a mortgage technology and data provider, home prices have declined slightly, but mortgage holders possess $11.5 trillion in tappable equity.

Even though recent news and numbers seem to suggest that the real estate market may be experiencing a slowdown, Black Knight added that the “market is on strong footing to weather a correction” given that the total market leverage (including both first and second liens) was just 42% of mortgaged homes’ values – the lowest number on record. 

Homes are always a solid investment strategy

Eager would-be homebuyers waiting for home prices to fall have some good news ahead of them. But, homeowners have good news, too. While there’s plenty of panic around a “decline” in home prices, the Case-Shiller Index reports it’s just 2.2%—meaning homeowners are still in command of a 38.33% increase in the last two years.

With mortgage interest rates hovering around 7% and home values stabilizing, the tail-end of 2022 or 2023 may be the best time for you to finally make that move, especially as two-thirds of major regional housing markets (98 out of 148) prices continue to drop. 

We’ll Help You Buy For the Right Price

When you’re ready to make your move, reach out and contact our trusted real estate team. We know the local housing market and can help guide you to the best deals available on the market today. And, there’s plenty of ways to extend your buying power and reduce your interest rates! Our team can’t wait to share our proven strategies with you, so contact us today!

Key Takeaways:

• There’s plenty of strategies to successfully buy in today’s market.
• Lean in on the expertise of your local real estate—we’ve seen it all!
• Our team is ready to help you achieve your goals, so contact us today.

Whether you’re shopping for your first home or relocating to a new area, purchasing a home in today’s real estate market can be daunting. However, the good news is that today’s housing market can actually be helpful if you’re a prospective homebuyer who knows how to play the game well. When it comes to making a winning offer on your dream home, you must know certain particulars of the homebuying process to be successful. 

So, let’s look at the top five tips that will help to play the real estate game more effectively and pave your path to home ownership. 

1. Determine and know your budget

Before you begin the house-hunting process and start picking your paint colors, potential homebuyers should receive pre-approval from one or more lenders to verify the amount of money they are qualified to borrow. Being pre-approved tells sellers you’re serious about buying and have the means to do so. It also helps narrow your search by allowing you to determine which neighborhoods are within your budget. 

Remember to consider the additional costs of homeownership, such as taxes, utilities, maintenance, and insurance. Finally, be realistic about how much you can comfortably afford in today’s tight real estate market. With availability at historic lows and rising mortgage rates, you’ll have to be able to move quickly when the right home presents itself. That means having your finances ready to go.  

2. Distinguish between your wants and your needs

To play the real estate game well, you need to know what it is, specifically, that you want from a home. Certain wants, such as stainless steel appliances, new cabinets, or hardwood floors, can always be obtained later. Therefore they shouldn’t be deal-breakers. 

However, if you want to be in a specific school district, need to live close to work, or have a decent-sized backyard to try your hand at homesteading, those cannot be addressed later and must factor in throughout the house-hunting process. As you contemplate a purchase, consider your other financial goals as well. It can be easy to get swept up in the frenzy of a tight housing market, so it’s essential to keep your financial goals top of mind during this process. 

3. Be prepared to act quickly

A well-priced property in good condition in a good neighborhood with plenty of nearby amenities will always draw many interested buyers during the first few days of being on the market. In a tight seller’s market like today, such homes rarely stay on the market for very long.   

So, when you find the right home that fits your budget and satisfies your wants and needs, you’ll want to sign an offer immediately and get it presented. Serious buyers should always be ready to submit an offer quickly, or they may risk missing out on the property altogether.

4. Bid competitively and stay flexible

Prepare to bid competitively to make your offer stand out, but remain pragmatic and know your limits. It may be tempting to submit a low offer as a starting bid, but in a tight seller’s market, buyers must put forward their highest offer from the very beginning to avoid losing out on the home. In multiple bidding situations, the highest offer is only sometimes accepted by the seller. In many instances, buyers with the fewest contingencies and who are flexible with things like their move-in date are the ones whose bid stands out to the seller.

5. Always work with a certified real estate agent

What’s trending nationally is certainly different from the area where you’re looking to buy, sell, or relocate to. Work with us, your local real estate experts. Our team is certified, experienced, and familiar with the areas and neighborhoods you’re considering. As your local agents, we are the most trusted resource for accurate information that you have at your disposal. Our unparalleled knowledge of our local community will give you the competitive advantage you need in this housing market. 

You Deserve to Work With the Best

If you’re ready to make your move, we know the housing market trends. With decades of experience in the natural ups and downs of the market, we know how to help you best navigate what’s happening right now. Contact us today to get started exploring your options and crafting a winning strategy.

Key Takeaways:

• Knowing your property’s real-time value is more important than ever
• Build a relationship with your local real estate team to maximize your money
• This is a great time to plan for the future of your home, so contact us today!

From volatile national market trends impacting local housing markets to unforeseen structural problems, a property’s value fluctuation can be tricky to gauge accurately. However, the good news for current and would-be homeowners curious about a property’s actual value in today’s market is that information is more accessible than ever. So let’s look at some of the easiest, most straightforward options for knowing a property’s actual value and why it’s so important!

Know the accurate value of your property

People usually want to know how much a home is worth to take comfort in knowing they’re making a good investment. Buying or selling a home is one of the most significant financial investments people will ever make. So naturally, when sellers want as much profit as possible and buyers want to pay as little as possible, achieving the right balance between these two when the closing time rolls around can be tricky. Staying informed about your home’s value and the trend of home prices in your local area allows you to make better financial decisions overall. It all boils down to knowing how much a home is realistically worth. 

Suppose you’re a current homeowner about to place your property on the market who’s considering a renovation to increase your payout at closing; knowing your home’s current value will help determine if doing so is even necessary, potentially saving you thousands of dollars. Or perhaps you’re a buyer eager to make an offer; knowing a property’s real-time, comparative value in the market could help you avoid overpaying. 

And this is where getting to know your local real estate professionals becomes one of the most important decisions you will make.

Build a relationship with your local real estate agent

Regardless of what is happening within the broader national housing market, buying or selling a home is always a local matter. While real estate is an industry heavily influenced by environmental, political, social, and broader economic forces that affect property value and pricing, what is valid for buyers and sellers in San Francisco differs from what is reasonable for buyers and sellers in Sioux Falls, SD. 

This is where knowing who your local real estate experts are is invaluable. Top-earning real estate agents have one thing in common: they know their local real estate markets. Ask them any question about the area, and they can answer it, or at least they know where to go and who to ask to find the answer. 

So, when you’re ready to put your house on the market or make an offer, the first and easiest step you can and should take is to contact your local real estate professionals. They are experts in their field who understand market etiquette and know how to make a great offer that achieves the difficult balance of satisfying both buyer and seller. The right real estate agent knows how to negotiate the complex web of forms best, and they can foresee issues you might not.

Discover Your Real Estate Partnership

If you’re ready to move, don’t get caught up in the frenzy of negative news. Instead, work with your local team that knows the micro-housing market in your area. Our real estate agents have decades of experience and understand how to help you best navigate today’s market. So don’t hesitate to reach out and say Hello! to figure out your best options for buying or selling your home!

Key Takeaways:

• Mortgage rates are going up, but they’re actually not that high. 
• You’re still in control: you can get yourself a lower rate with these smart tips.
• Find opportunities in your local real estate market—contact us today!

Many would-be homebuyers are fearful of rising mortgage rates. It seems like the news is non-stop negative when it comes to talking about the housing market. But it’s worth putting those headlines into perspective. In 1981, mortgage rates hit an all-time high of 18.45%! On a 30-year fixed mortgage right now, you can expect to find rates around 5.9%—that’s 68% less than the highest mortgage rates homeowners have historically managed. Let’s take a look at today’s mortgage rates and see why this is still the time to buy. 

Why are mortgage rates increasing right now?

The COVID-19 pandemic had unexpected financial consequences across the entire world. One of those was a real estate boom in the United States, spurred by record-low mortgage rates. 

In December 2020, the 30-year fixed mortgage rate was an astonishing 2.68%. And guess what? These were the lowest mortgage rates in history. The whole year of 2020 saw the lowest annual average rate in history at 3.11%.

That historical high of 18.45%? That was caused by record inflation during the OPEC embargo. And, the Federal Reserve is working hard to curb inflation right now to avoid things like double-digit mortgage rates returning. 

So, while plenty of lucky homeowners were able to purchase new homes or refinance their existing ones at around a 3% mortgage rate in 2020, it was extremely unlikely that those rates would ever become the norm—because they have never been. It was only due to the COVID-19 pandemic that rates were temporarily at their lowest of all time. 

Can I still buy a home with 5% mortgage rates?

Of course you can still buy a home! Before COVID-19 ushered in a few years of unprecedented global economics, in January 2019 the average mortgage rate was around 4.5% and around two-thirds of Americans still owned and occupied their homes. 

Mortgage rates have seen spikes and dips and national and international events influence financial markets. But for more good news, let’s consider that the average mortgage rates have actually declined every decade since the 1970s, and the amount of homeowners has steadily increased as well. 

With rates around 5% right now and more economic uncertainty on the horizon, this is still a great time to buy a home. You can lock in a rate that’s actually on the lower end, and be able to refinance when the time comes that they fall below 5% again. Or, you’ll be in a perfect position to sell your home at that time and realize your equity gains. 

How you can secure a lower mortgage rate

There are still steps you can take to lower your rate, independent of the Federal Reserve. Even though the Federal Reserve is responsible for setting interest rates, mortgage rates are only influenced by the Federal Reserve, and there are more factors you can control. 

First and foremost, make sure you pay attention to improving your credit score. It’s always important to have a decent credit score when applying for loans, but even more so when you can save yourself money every month on your mortgage.

Next, pay down or off any debt and try to increase your income if you can. A higher annual income helps with mortgage rates, but may also give you some extra spending to pay down debt before applying for a home loan. 

And finally, shop around for different lenders, and consider different types of mortgages. There isn’t just one lender in town, and there are more options than the conventional 30-year fixed mortgage. A combination of the right lender and the right mortgage for your financial situation can make a big difference in your final monthly payment.

Let’s Buy Your Dream Home

There are still plenty of wonderful homes for sale in all types of price ranges in different neighborhoods. That’s why it’s important to contact your local real estate team. Don’t worry so much about the headline news—focus on what’s happening in your backyard, and what kind of home you can buy right now. Contact us today to get started!