National Real Estate Market Archives

June 1, 2022June 19, 2024

Now Could Be the Best Time to Sell Your Home

Key Takeaways:

Shifting buyer demand creates lucrative opportunities for decisive sellers
Higher mortgage rates have set fire to this already hot housing market
Don’t delay—now is the time to contact us and get your home on the market!

The current housing market

With a sudden jump in home listings recently, today’s hot housing market has many homeowners wondering if now is the best time to sell. Of course, trying to time the market perfectly is challenging, though if there ever was a time to sell, this is absolutely a great one.

Everyone’s situation is different, but if you’ve been thinking about selling your home lately, contact us today to begin the process and maximize your success.

The supply of homes for sale, explained

Saleswoman giving home keys to new property owner.

Compared with last year, the supply of homes for sale jumped 9% in May, which is striking considering the historically low supply of home inventory that has defined the US housing market this year.

As sellers rushed to put their properties onto the market and cash in their equity gains, new home listings rose nearly twice as fast as a year ago in May, while pending home sales fell by almost 4% in April. And with sales of newly built homes dropping by a much broader 16% compared with March, this marked the sixth straight month of sales declines.

To fully appreciate this drop-off, consider that this softening in demand for housing marks the greatest slowdown on record in nearly a decade.

Home sales are slowing because mortgage rates have risen sharply since the start of the year, with the most significant gains coming in April and early May. The average rate on the 30-year fixed mortgage started the year close to 3% and is now well over 5%, causing new home buyers to slow down a bit.

The reality of rising mortgage rates

Businessperson's Hand Protecting Balance Between Percentage Red Cubic Block And House Model On Wooden Seesaw

While homeowners and homebuyers certainly enjoyed locking in 30-year fixed mortgages at the historic low of 2.68% in December 2020, this is far from the norm. It was only a few years ago, during the decade of the 2010’s, that mortgage rates averaged between 3.45% to 4.87%—not that far off from today’s average of just over 5%.

If you step back even further in time, the absolute highest mortgage rate was a whopping 18.45% in 1981! Like today, that was due to the Federal Reserve raising the federal funds rate to combat inflation, causing mortgage rates to spike. But unlike potential homebuyers in 1981, we have good news on the horizon, as we’re seeing mortgage and refinance rates start to decline for the first time in weeks and the economy showing signs of stabilizing.

An overdue housing market correction

Chart showing home values changing over time.

If you’re still worried about the housing market, you don’t need to. The good news in these reports is that homes are still selling, and in many cases, they’re still selling above their asking price. The housing market is cooling down due to a lull in buyer demand. However, this cooldown is a much-needed correction to what has been a short-term housing market fueled by the pandemic.

The critical difference in the market now is that with fewer buyers competing with one another over available housing, home prices rose another 21% in May, meaning equity gains are still there for homeowners. And if you’re looking to sell to downsize and lower your monthly expenses, you’ll be perfectly positioned to find your ideal home with fewer buyers competing with you in the market.

Sell Now for Your Best Return

If you’re considering selling your home, this may be the best possible time to list. With a trusted, experienced real estate team behind you, you can rest easy knowing that we’ve seen the ups and downs of the market over the years. You can always make a smart move, so contact us today to discuss your options!

May 15, 2022December 20, 2024

Inflation and Home Values

Key Takeaways:

Home values are rising faster than inflation, making homes a prized asset
This housing market offers unique opportunities for buyers and sellers
Contact us today to secure your assets and safeguard your future!

The state of real estate and inflation

As inflation soars to near 40-year highs and raises the cost of everything, many are looking for innovative ways to secure their assets against inflationary losses. Additionally, given the housing market’s recent volatility (primarily driven by historic low levels of housing inventory that have caused an imbalance between supply and demand), it’s understandable that many might consider real estate to be a wrong or risky move right now. But the great news is that nothing could be further from the truth. Let’s explore how and why buying or selling a home can safeguard you against inflation.

The housing market can protect you from inflation

Image of homes and a graph representing housing market and inflation.

Real estate remains a stable area for investment and profit realization because a home’s value does not increase in relation to currency; it increases based on demand. So if you’ve been holding back from buying because of today’s market pressures, consider that inflation is up even more than mortgage interest rates, making it a smart move. Similarly, if you’re considering selling, the demand for housing has never been greater, which is terrific news for anyone looking to cash out their equity to hedge against inflation.

Buying a home: by the numbers

Let’s take a look at some numbers. Experts estimate that Americans face an annualized inflation rate of around 15%. Considering that, the current 5% mortgage rate is a bargain for homebuyers in the short term. Moreover, you’re securing an asset that, over time, will increase. And, as you pay down your mortgage, even at 5%, your equity will continue to grow.

Selling a home: by the numbers

Senior Adult Couple in Front of Sold Home For Sale Real Estate Sign and Beautiful House.

It’s no secret to homeowners that their home equity values have grown over the last couple of years. According to research firm Black Knight, at the end of 2021, Americans were sitting on record-high home equity levels of approximately $9.9 million. So if you’ve noticed homes in your neighborhood selling above their listing price and you’ve been on the fence about selling yourself, now may be a good time to cash in on this opportunity.

Both buyers and sellers can make tremendous gains

Happy family with children moving with boxes in a new house.

In a hot housing market where home inventory is low, competition is fierce, and home equity values are at all-time highs, buyers and sellers can start to feel overwhelmed. But don’t despair: an increase in mortgage rates isn’t stopping homes from selling quickly, nor is it preventing home equities from appreciating. For example, according to the National Association of Realtors (NAR), properties remained on the market for just 17 days in March, with many going for over the asking price!

With more buyers than sellers today, current homeowners looking to sell to fight inflation have the advantage of likely bidding wars, resulting in greater profits and fast-moving homes that don’t stay on the market for very long. For those looking towards homeownership to protect their assets against inflation, reassurance comes from knowing that demand is expected to outpace supply for the foreseeable future, meaning that home equities will continue to rise. And if inflation continues, fixed-rate interest rates will drop again, creating the perfect opportunity to refinance your loan.

Get Ready to Make Your Move

The first step to buying and selling is crunching the numbers. Our team will help you find the real, up-to-the-minute value of your home using the latest microdata and neighborhood trends. Then, we’ll work with you to figure out the best strategy to shelter your investments and assets from inflation. Contact us today!

April 15, 2022June 19, 2024

Should You Be Worried About a Housing Bubble?

Key Takeaways:

Real Estate Bubbles: what are they, are we in one now, and why there’s no cause for alarm.
It’s natural to compare today to 2008, but this housing market is vastly different.
You can lean on our expertise! We’ve seen all types of markets, so reach out with questions.

With home prices soaring to levels never before seen, it is undeniable that the U.S. housing market is in uncharted territory, with many industry experts speculating that we’re in the midst of yet another housing bubble. However, like snowflakes, every bubble is created differently and is unique.

As mortgage rates rise and rumors of another crash in the housing market fill the news cycle, it may be tempting to get cold feet and postpone your homeownership dreams. But as we’ll explore below, it’s essential to understand the anatomy of housing bubbles, what causes them and why it’s a term you needn’t fear.

What exactly is a bubble within the housing market?

house property prices bubble of the investment loan interest rate on mortgage

In basic terms, a real-estate bubble is a temporary economic event that occurs periodically and refers to an increase in the overall value of the housing market. When a bubble grows, home values increase; when a bubble pops, property values decrease.

Simple enough, but, what causes the housing market to experience bubbles?

Traditionally, the Law of Supply and Demand dictate a property’s market value. For example, when the demand for housing is high, and supply is low, home prices often rise, typically resulting in a seller’s market. Conversely, when housing supply is high but demand is low, market values fall, resulting in a buyer’s market. However, additional factors such as speculative investing, FOMO (Fear Of Missing Out) panic buying, and risky lending (such as occurred in the 2008 Housing Crash) are all elements that influence the growth and burst of housing market bubbles.

Why you don’t need to fear housing bubbles

Loving young couple looking at dream house.

We can always count on the old axiom in real estate: “You can never enter the same river twice.” (Fun fact: Greek philosopher Heraclitus came up with that lasting gem!)

What is meant by this is that history does not strictly repeat itself, and for us today in the real estate market, that means that it’s not 2008. As mentioned above, though the market moves in cyclical fashions, most experts do not believe that The Great Recession is repeating itself in today’s market.

2022 is not 2008 repeating itself

Young woman holding home keys while hugging boyfriend in their new apartment after buying real estate.

The infamous U.S. housing bubble of the mid-2000s had its origins in the unprecedented growth of the subprime mortgage market. Additionally, U.S. government-sponsored mortgage lenders Fannie Mae and Freddie Mac made home loans accessible to borrowers with low credit scores and a higher risk of defaulting on those loans.

None of this is happening today.

The current market demand is not the result of easy lending. Instead, today’s rising property values result from the natural market forces of a low supply in housing inventory meeting high demand. But with new home construction expected to surge in the second half of the year, this will help ease demand in the future and stabilize the market overall.

Regardless of whether you’re selling your home or are a first-time homebuyer, the key takeaway for you is this: today’s high home values are not likely to crash any time soon, so it is as good a time as any to enter the market.

You Can Count on Us in Uncertain Times

If you’re feeling unsure about whether to buy or sell a home right now, reach out and rely on our expertise to guide you to make a sound financial decision. Our team has the experience and knows our local market, so contact us today and we’ll work with you to find the right strategy for your situation.

March 16, 2022August 2, 2024

Rising Oil and Gas Prices

Key Takeaways:

Oil and gas prices are the highest in United States history!
Individuals and families are shifting how they think about housing, from suburban versus urban to downsizing or going multigenerational.
It’s critical to work with an agent who understands the right fit for you and your family.

Record-high oil and gas prices are changing home buying and selling

It’s difficult to escape the news: gas prices are surging across the nation, with the increase averaging $1 per gallon. With costs at historical highs, the ripple effect changes how we think about everything. That includes the largest line item on any household’s budget: their home. How will this new reality change how people buy and sell real estate? Let’s take a look at some of the main considerations.

Urban Versus Suburban

Person filling car with gasoline and check balance at the gas pump.

Traditional wisdom says that the suburbs are more affordable with their long commutes, while cities are expensive due to more amenities and desirability. But when the daily commute costs more than it ever has in the history of the country, the conventional advice isn’t necessarily the right move for everyone.

To judge whether relocating from the suburban to the urban is right for you, take a look at the commute time, proximity of local amenities, and public transportation. Some urban centers offer more robust and reliable options for getting around, while others are still heavily car-dependent. If moving into the city won’t get you out of your car, the suburbs are still a good choice. But big city living is an attractive option if you can reduce how often your family drives—or even go from a multi-car family to a single vehicle.

Reconsider Your Housing Footprint

Portrait of happy extended multigenerational family all together on sofa at home.

The size of a home is always a big consideration when you’re looking at your next place. Right now, there’s the added pressure of the costs of heating and cooling a home to consider when you think about total square footage. On average, the cost of natural gas is up 24% in February 2022 compared to the previous year, and electricity is up 9%.

Downsizing can be a smart reason to sell your home and buy a new one, especially if your family situation has changed and you don’t need as much space. With less to heat, cool, and maintain, finding a home that’s just the right size for the stage of life you’re in is something your agent can help you with.

During the COVID-19 pandemic, families started moving back in together at rising rates. Now, more than 40% of homebuyers consider multigenerational living in their purchasing decision. New developments are dedicated to building homes and communities that accommodate people at different stages of their lives. And, if the family situation changes, being able to rent out a dedicated space is an excellent source of passive income.

Whether you’re looking to go small by yourself or go big and share the costs, homes that are renovated with energy-efficient appliances, or new construction with the latest smart home technologies, are especially attractive. These are smart decisions to make now that will also save you costs in the long run, even when oil and gas prices stabilize.

Act Fast to Lock in Interest Rates

House Model Near Percentage Sign With Keypad Lock Over Wooden Desk

Gas prices are tied closely to mortgage rates. Yep, it really does affect everything! Mortgage lenders want to have an extra cushion over inflation when they set rates, and with the rise of oil and gas prices, interest rates will get pushed up too. If you’re buying a home, it’s time to get serious about making offers. Higher mortgage rates will impact what you can afford.

For sellers, this can impact the white-hot housing market streak that was the dominant theme for the last few years. With interest rates set to rise, home sellers may want to be flexible about offers, in case the market shifts dramatically as interest rates go up throughout the remainder of the year. Of course, this varies widely by market, and you’ll want to consult your agent before making any decisions on offers on your home.

Make Your Move

There’s no time to wait—with the market changing this rapidly, you’ll want to leave yourself enough time to have options and make a well-informed decision. That’s why you need to work with an agent that understands the ups and downs of this historic market and considers the needs of you and your family. Contact us today to get started!

March 1, 2022June 19, 2024

Home Sellers: When Should You Reduce Your Listing Price?

Key Takeaways

Even in a seller’s market, you may still need to reduce your price
Consider if you’ve tried everything else before a price reduction
Make sure to seek the advice of your trusted realtor–we’ve seen it all before!

Even in a competitive seller’s market like the one we’re in right now, listing your home for the right price is key. Don’t count on a bidding war happening to get the price you want! Let’s take a look at what you should do before listing your home, indicators that your home is priced too high, and the strategies you can use to make the price right.

How Do I Figure Out the Right Price?

When home prices are rising quickly, low appraisals can affect your listing price. With year-over-year home prices up 17% on average nationwide in 2021—with some markets seeing as much as 35% increases—the appraisal you receive may not reflect other recent asking prices in your area.

Your experienced real estate agent will use data from the local MLS and consider other homes in your neighborhood and what they sold for recently. They’ll also consider tax data, your property’s previous sale price, and even micro market trends. Working with an agent in such a fluid, dynamic market is essential to getting the price right.

Since your largest pool of buyers often finds your home within the first 21 days of listing, try to list your home at the right price from the start. If you’re not seeing the offers you thought you would, make an adjustment quickly before the initial interest fades away.

If the first week of listing your home isn’t resulting in offers, especially in a market this hot, that’s a red flag your home is overpriced. However, if you’re getting offers, and they just aren’t meeting your listing price, it’s a good sign you’re in line with the market and may need a small decrease.

How Do I Know When to Lower the Price?

Image of a couple working with a real estate agent.

It’s exciting to list your home in such a historic market, but moving too fast and forgetting the basics can hurt your chances of success. Work with your real estate agent to market your home. This includes cleaning and decluttering your home, staging rooms, taking attractive photos, and communicating the value of the property in the listing.

Rely on the most recent data to find the sweet spot for price. You’ll want to consider homes recently sold within a mile or two of your home, especially ones with the same number of bedrooms and bathrooms and square footage within 20% of your home that closed within the last 90 days.

If all of that is said and done and you’re not receiving any offers, you may need to lower the price. Even in a seller’s market, selling over asking or enjoying a bidding war for a higher price is not guaranteed. Make sure you know the lowest price you’re willing to accept before you list your home, so making a change won’t feel like taking a loss.

When it comes to finding the new price, there are a few things to consider. While the general advice is to lower anywhere from 0.5% to upwards of 3%, you also want to pay attention to your price bracket and what buyers are searching for. If lowering your price brings you down from $410,000 to $398,000, that will open up your home to a new pool of buyers searching for homes under $400,000.

Price Your Home Right from the Start

Real estate is a continual learning process, and it takes effort to figure out the right price. That’s why you should work with our experienced, trusted team to get started out right! Contact us today to find the true value of your home based on the most recent, up-to-date, micro-economic data available. Our team is here to help you sell your home for top dollar.

December 15, 2021June 19, 2024

What to Expect in the 2022 Real Estate Market

Key Takeaways:

Many of the dynamics seen in 2021 will carry through into next year’s housing market, but at a much less frenzied pace.
As remote work becomes a more permanent, widespread option, Millennials are taking advantage and entering the real estate market.
We’re ready for another seller’s market. Like last year, there isn’t time to waste—contact us to start planning now!

What Buyers and Sellers Need to Know About the 2022 Housing Market

In the final few weeks of 2021, both home buyers and sellers look forward to what lies ahead in 2022. We can help build your strategy to stay competitive! Don’t wait for the real estate market to heat up during the spring and summer. Here’s what you need to know to get ahead of the competition next year.

First-time home buyers can overcome the challenging market

Recent real estate forecasts suggest that competitive will be the defining characteristic of the housing market throughout 2022. That will be especially true for first-time home buyers.

Competing levels of low inventory supply and high buyer demand will continue to hold housing market values at, or above, asking prices. Total inventory will increase by the end of 2022, but it will not be enough to slow the seller’s market.

For first-time home buyers to secure their house, they need to start early and expect competition. On a positive note, low interest rates can help new homeowners build equity faster.

Millennials are working remotely and finally buying homes

A lot has changed in these last two years. Buzzwords like “the new normal” were everywhere, along with speculations about how people lived, worked, and commuted were going to change. As we enter into 2022, we now have data reports and are beginning to see how these changes affect the housing market.

The ability to work remotely is helping the more than 45 million Millennials that make up the fastest growing segment of buyers. After an uphill battle, they’re entering the prime first-time home buying age range of 26 – 35, and changing the real estate landscape.

Millennials are leaving the glamor of big city life to take advantage of more affordable housing markets in suburbs and rural areas. As long as they have internet access, their salary remains the same. And unsurprisingly, 99% of them use technology to research the home buying market.

With 90% of managers and employees reporting that they’re happy working from home, and productivity increasing by as much as 47%, remote work is here to stay. The new normal will also create new investment opportunities as companies seek to reduce their office sizes.

Low inventory stretches into the new year

After years of underbuilding, housing supply shortages will continue to be a dominant feature of the market next year. One of the most significant factors that will carry over immediately from last year is low inventory supply.

Available housing will remain tight throughout the year. While that will generate some stress, it will also drive home values higher. Estimates of continued home sales growth will be 6.6%.

While housing inventory levels will remain lower than their pre-pandemic levels throughout 2022, a modest 0.3% growth in inventory should be enough to keep market prices from spiraling even further upward.

Sellers remain in control of the market

As we look ahead to 2022, some clear realities for the housing market begin to appear: it will remain a seller’s market. Interest rates continue to hover around a record-low 3%, providing incentives for sellers to upgrade to a larger home for a lower monthly payment.

After the refinance boom in 2020, homeowners are still in an advantageous position. With home sales expected to hit their highest level in 16 years due to Millennials entering the housing market, sellers sit in a very good position to profit. If accurately priced and, more importantly, if houses are in great condition with upgrades throughout, the real estate market will continue to be a boon for sellers.

Be Prepared for a Competitive Year

The new normal in 2022 turns out to be an old adage: the early bird gets the worm. We have the experience and can move quickly to make sure you stay competitive, regardless of whether you’re buying or selling. Contact us today to make your plan for the new year!

May 1, 2021June 19, 2024

5 Questions Sellers Keep Asking About 2021’s Hot Real Estate Market

Key Takeaways:

Today’s real estate market is heavily skewed towards sellers, making now the perfect time to list your home.
Many would-be sellers have questions about moving when the market is this hot—and we have the answers you need to get started.
If you’re considering selling your home soon, it’s crucial to work with a top local agent. Give us a call to see what we bring to the table!

The Top 5 Questions Every Seller Asks in Today’s Market

Whether you’re eager to list or are just thinking about selling, you’ve probably heard that the 2021 real estate market is one for the record books. Since last year’s swift economic recovery, home values just keep getting higher, and it’s not uncommon for listings to sell over asking price in just a few days. And according to the National Association of Realtors, the typical home is now selling for 14.1% more than last year.

Have a few reservations about listing your home right now? Here are the answers to some of the most common questions we hear from our sellers.

Should I even consider selling right now?

To put it simply: yes! There’s never been a better time to sell, especially if you’ve built up equity by living in the same home for a while. Since the beginning of the pandemic, we’ve seen a national housing shortage, record-low interest rates, and a surge of serious buyers. This has driven prices to all-time highs, and many buyers are even waiving contingencies or paying extra for the right home.

Looking for another reason to move? A recent survey by NerdWallet found that one in six homeowners plan to list their home in the next 18 months. So if you want to take advantage of today’s crazy market and beat out the competition, you shouldn’t wait much longer.

Will I be able to buy a new home after I sell?

A majority of homeowners aren’t worried about selling their home—they’re actually more concerned with buying a new one. If your home sells quicker than you expect, you still have options. You may be able to request “use and occupancy” or “rent-back” contingencies from your buyer, which allow you to live in your current home until you find a new one. It’s also worth asking your buyer if they’re willing to be flexible with the closing date. Depending on your situation, it might even be more advantageous to buy before you sell.

Do I need to work with an agent if the market is so hot?

Many homeowners believe they can make an even bigger profit by not using an agent, particularly in a seller’s market. While you may save some money on commission, you could end up selling your home for below its true market value. And let’s be honest—nobody has time to sort through dozens of offers or handle all the complicated paperwork that comes with selling a home!

If you want to price your home right and ensure a stress-free selling experience, it’s worth paying for an agent.

Should I still stage my home or make improvements?

Unless your home is in dire need of an update, there’s no need to make any major changes before you list. However, it’s still a good idea to do a little staging to get your space looking its best. Start by tidying up, getting rid of clutter, and depersonalizing as much as possible.

If you’re trying to sell a fixer-upper and don’t want to complete any repairs, consider listing “as-is.” This tells potential buyers that you won’t be making any changes—what they see is what they get.

What’s my home worth in today’s market?

Tempted to use an online estimator to see how much your home is worth? Before you type in your address, consider reaching out to a local real estate agent instead. The real estate market in our area changes day by day, and an agent will have up-to-date data that’s more accurate than any algorithm.

If you’ve lived in your house for at least a few years, your property has probably increased in value more than you’d expect. Get in touch with us today for a complimentary valuation, or give us a call for more personalized advice!

Sell Your Home with Confidence

Selling your home shouldn’t be a stressful experience. If you have even more questions about today’s market, just drop us a line—we’re here to make the entire process hassle-free!

Curious about your home’s value? Send over your address, and we’ll conduct a free, no-obligation home value estimate.

April 15, 2021June 19, 2024

4 Tricks to Buying a Home in a Crazy Hot Market

Key Takeaways:

Despite the ongoing pandemic, the real estate market is more competitive than ever before—and that means buyers have to do more to get their offer accepted.

Want to stand out from the competition and score the home of your dreams? Our four tips can help you achieve real estate success in no time.

If you have any questions about buying in today’s hot market, just give us a call for even more personalized advice!

The 4 Tips Every Buyer Needs to Know in 2021

If you’ve been house-hunting for a while, you’ve probably noticed that today’s real estate market is more than just a little competitive. Low mortgage rates, high demand, and dwindling inventory have created ideal conditions for sellers—but it’s still very possible to score a fantastic deal on a home.

Want to know the secret to buying a home in 2021? Here are four tips that can help you take back control in a seller-driven market.

Get your finances in order

First and foremost, you need to get your finances in order before you even consider looking at homes. Start by paying off as much debt as you can and increasing your credit score. It’s also a good idea to keep track of just how much you have saved for a down payment. Sellers are more likely to choose buyers who can put down at least 15% or pay cash.

Want to strengthen your offer even more? Get preapproved or attach a higher earnest money deposit to show a seller you’re serious about buying their home.

Know what you want

Buying a home is one of life’s most exciting milestones. However, it’s easy to get caught up in the little details—which is why it’s crucial to do your research in advance. Connect with a local agent early on to discuss your home-buying goals. A good agent will help you hone in on your budget, wants, and needs, as well as the right area or neighborhood.

Prepare for a bidding war

According to a recent survey by Redfin, more than half of all buyers found themselves in a bidding war last year. And while the idea of competing against other home-seekers might seem overwhelming, there are a few things you can do to stand out.

If you’re trying to score a house with multiple bids, send in your best and final offer up front. You may also want to include an escalation clause, which automatically increases your purchase price by certain increments (like a few thousand dollars at a time) so you avoid getting outbid.

It’s also a good idea to consider homes below your budget, especially if you have your heart set on a popular neighborhood. This gives you some flexibility if you end up in a bidding war.

Appeal to the seller

Even if you find yourself in a bidding war, it’s still possible to come out ahead. Believe it or not, sellers don’t always choose the highest offer, even if it far exceeds the original asking price.

You can appeal to a seller’s peace of mind by limiting your contingencies, offering to pay closing costs, and letting them choose the closing date. Adding these extra bonuses might seem minor, but they can really impact a seller’s final decision.

Only Buy with the Best

Working with a top-notch agent can help you navigate 2021’s crazy real estate market with ease. So if you’re looking for some guidance, it’s time to give us a call!

Whether you’re at the beginning of the buying process or are already searching for a home, you can trust us to help you find your perfect place. Contact us today to get started; we look forward to working with you.

April 1, 2021June 19, 2024

What Makes Today’s Real Estate Market So Competitive?

Key Takeaways

This year’s housing market is shaping up to be the most competitive on record, but the pandemic isn’t the only thing influencing the national real estate boom.

There are actually quite a few factors contributing to today’s hot market, including unfettered buyer demand, historically low supply, and steady interest rates.

Have questions about buying a home in 2021? Get in touch with us for even more personalized advice.

3 Factors That Make 2021’s Real Estate Market More Competitive Than Ever

If you’re planning a move, you might be wondering how the real estate market will change this year—and the predictions are pretty eye-opening. Existing home sales are expected to increase by 9%, home prices could rise by a whopping 8%, and mortgage rates should stay well below 4% for the foreseeable future.

For buyers, this means you may have to work harder than usual to find the perfect place. However, this extra effort will pay off if you have a home to sell or want to take advantage of extraordinarily low interest rates.

Need help making sense of today’s market? Here are a few reasons why real estate is more competitive than ever in 2021.

The ongoing pandemic

A year ago, real estate experts had no idea how the COVID-19 pandemic would impact the housing market. While many predicted a crash akin to what we saw in 2008, we actually saw the opposite: a pandemic housing boom.

During last year’s lockdowns, many renters and homeowners grew unhappy with their living situations and wanted a change. This caused demand for homes to spike—and as panicked sellers pulled their listings, prices rose higher and higher.

The pandemic might slowly be coming to an end, but we’re still seeing remnants of 2020 in today’s market. And while more sellers are finally warming up to the idea of listing again, available housing supply is still at its lowest point ever.

Record-low interest rates

In late March, interest rates for 15- and 30-year mortgages hovered around 2.5% and 3.3%, respectively. Although these numbers aren’t quite as low as they were in 2020, buyers can still score a once-in-a-lifetime deal by moving now.

To put things into perspective, let’s say you’re thinking about buying a $300,000 house with a 20% down payment. Back when rates were nearing 4%, you could expect to pay around $1,200 per month for your mortgage. However, if you were to buy that same home with a 3% interest rate, your payment would drop to just $1,012—and that difference can save you tens of thousands of dollars over time.

Low inventory & unprecedented buyer demand

Real estate is all about supply and demand. And in today’s competitive market, an inventory shortage and swelling buyer demand have created perfect conditions for sellers. In particularly popular areas, it’s not uncommon for homes to sell just days after they’re listed, sometimes in bidding wars that go above the original asking price.

If you’re thinking about buying a home soon, be prepared to act fast. Many agents recommend getting pre-approved, limiting your contingencies, or even setting an escalation clause to automatically outbid other buyers.

Bottom Line: Now Is the Time to Move

Navigating 2021’s one-of-a-kind real estate market may seem like a daunting task, but the right agent will help you through every step of the process. Today’s buyers can capitalize on shockingly low interest rates, while sellers stand to make an impressive profit should they decide to list soon. And if you ever have any questions, we’re always here to help!

Buying or Selling Soon? Let’s Talk!

Don’t let the market keep you from making a move. If you’re ready to achieve real estate success in no time at all, drop us a line to get started. We’d love to offer you one-on-one buying or selling advice that’s tailored to your unique needs.

January 15, 2021June 19, 2024

Why You Shouldn’t Wait Until Spring to Sell Your Home

Key Takeaways:

After a turbulent 2020, many homeowners are holding out until spring to list their properties.
Though spring is usually the busiest season for real estate, now is the time to take advantage of high prices, low interest rates, and skyrocketing demand for homes.
Not sure when to list? Get in touch with us today to explore your options!

Here’s Why Sellers Should Capitalize on 2021’s Hot Winter Housing Market

It’s safe to say that 2020 was a challenging year, both in real estate and for the world as a whole. And as we celebrate new beginnings, many homeowners are pondering a move at some point during 2021. Traditionally, spring is considered the best time of year to sell a home—but thanks to a number of factors, this is no longer the case.

Still not sure if now is the right time to move? Here’s why you shouldn’t wait any longer to put your home on the market.

You won’t have much competition

If you haven’t seen as many “For Sale” signs in your neighborhood recently, you’re not alone. According to the National Association of Realtors, available inventory has plummeted by nearly 40% over the last few months, which is fantastic news for today’s sellers.

Dwindling supply and high buyer demand will put your home in the spotlight if you decide to list this winter, and it means you’ll be in the driver’s seat during negotiations. Because there are fewer homes on the market right now, you also won’t have to compete with other sellers waiting to move in the spring.

Interest rates are still low

Interest rates reached record lows in 2020, which tempted many buyers to enter the market even amidst a pandemic. In November, rates actually dipped below 2.3%—that’s the lowest they’ve been in recorded history!

Most experts believe interest rates won’t spike during 2021, but we’ll probably see some slight increases as the economy continues to bounce back. Listing your home before rates go up comes with a lot of benefits, and it might even be the smartest financial decision you ever make.

Low interest rates help drive buyer demand and make homeownership more affordable. As a seller, that means you’ll draw in a larger audience of financially-qualified buyers and maybe even sell faster than you expect. If you plan on buying another home, you’ll be able to secure a great rate, too.

Home prices keep rising

If you’ve lived in your current home for more than a few years, now could be the perfect time to sell and cash in on your equity. In a recent study, the National Association of Realtors found that home prices have increased by a whopping 13.4% since 2019. In 2021, prices are expected to increase by 8%—and in 2022, that projection drops to just 5%.

While it may be tempting to “time” your sale to get the best possible price, selling your home when you know the market is doing well is a surefire way to yield an impressive profit. And if you’re ever curious about how much your home is worth right now, you can always ask your agent for a free home valuation.

The market could change before spring

As the market continues to recover, it’s still hard to know what will happen in 2021—after all, nobody predicted last year’s pandemic and economic collapse! Most experts aren’t expecting another sudden crash, but that doesn’t mean you should wait until spring to list your home.

Right now, we’re seeing a record amount of home sales, as well as a surprising number of motivated winter buyers. So if you want to be smart about your move, it makes sense to sell sooner rather than later.

Get the Most Out of Your Home Sale

If you’re thinking about selling your home this winter, contact us today to get started. We have plenty of resources to guide you through every step of the process, and we can even help you buy your next home after you sell.

Want to know how much home prices have risen in your neighborhood? Be sure to ask about our complimentary home value assessment!