US Housing Market Archives

July 15, 2022June 19, 2024

The 2022 Summer Housing Market

Key Takeaways:

There’s a lot to be excited about with this summer’s housing market.
Homes are for sale with the features you want, like swimming pools.
Our team knows how to help get the most for your home – contact us!

Despite news about a looming recession, high mortgage interest rates, and low inventory negatively impacting the housing market, many good things are still happening and worth getting excited about in the 2022 summer housing market.

Some promising news in today’s historic housing market is that home demand remains strong, with well-vetted, qualified buyers making cash offers, creating a more balanced seller’s and buyer’s market. Additionally, home values continue to defy the odds and climb higher with no end in sight, helping your equity gains grow, which creates opportunities to put your equity gains to use that have never been better.

So, let’s take a deeper look at the 2022 summer market trends and help you figure out your next best step!

Upgrade to a home with the summer features you want

Senior neighbors having fun spending sunny summer day together outdoors, having a backyard barbecue party by the swimming pool

Maybe you’ve just returned from vacation, and you miss relaxing by the sea, or perhaps you didn’t go on holiday this year and missed out on getting to spend afternoons poolside or get to the ocean. Or possibly you’ve looked into getting a pool, or some other addition, installed at your home and have encountered supply chain issues. Regardless, there’s no reason to be discouraged.

While housing supply is at record lows, it’s important to remember that historically, summer marks a lull in inventory that gets improved upon by the season’s end. This year is no different, with plenty of updated and newly-built properties available on the market, so it’s a great time to look and see if your ideal property that already has a pool or a pavilion is on the market right now waiting for you.

Real estate is a proven safeguard against recession

Closeup house model over the Sale representative offer the house price list and condition for house purchase or rental on the working space table in new house

A shrinking economy marks a recession. People will spend less money on discretionary purchases, focusing instead on essentials. Companies may slow down hiring or even begin laying off workers to bolster their bottom lines. Stock prices may drop in the face of uncertainty about the economy.

When a recession sets in, the value of your stock portfolio may take a hit if prices drop temporarily. While downturns aren’t ideal, they can create opportunities for savvy real estate investors. If you’re considering investing in real estate during a recession or already own investment property, you need to have a strategy for maximizing your equity gains.

Real estate can offer some stability for investors when the economy slows. Of course, a recession doesn’t automatically cause a drop in home values. But if a recession causes a hot housing market to cool off, that could open up opportunities for you to find your dream property at a discount.

It may seem contradictory to move during these challenging times, but remember, even with higher mortgage interest rates, there are always opportunities, even in the most demanding of seasons. What makes the difference is doing your research, knowing what you want and can afford, and most importantly, working with a capable guide before leaping.

Just remember: As with any real estate purchase, it’s not about right-timing the market but about buying at the right time for your personal goals and finances.

Let’s Talk About Your Real Estate Goals

Whether following local and national trends and guiding you through a shifting market or pricing your house right, a trusted real estate agent has the expertise you’ll want to rely on throughout your next transaction. So if you’ve been considering selling, let’s connect so you can have an expert on your side.

July 1, 2022July 26, 2024

Is It Better to Rent or Buy Right Now?

Key Takeaways:

Homeownership remains one of the best ways to build long-term wealth
The cooling housing market is causing bidding wars for rental units
Our experienced team of dedicated agents will help you secure a home!

The Cost of Rent Is Rising

Recent reports on current conditions in the real estate market have highlighted a new trend developing in today’s heated market: rising rents. In addition to increasing rental costs, bidding wars within the apartment and housing rental market are increasingly becoming commonplace, with some offering hundreds of dollars more than the asking price.

If you’ve been renting and wondering if buying a home instead of renting would be a better use of your money, the good news is that, yes, buying a house is still a better use of your money. So let’s take a closer look at what’s happening in today’s market and why buying a home remains the better option for building your wealth versus renting.

Why is rent increasing?

According to real-estate company Redfin, the median U.S. asking rent passed $2,000 for the first time in May, and it has risen 15% over the past 12 months. While bidding wars have long been a staple of hot housing markets, where buyers compete with offers above the seller’s listing price, these contests are now becoming more commonplace in the rental market.

Historically, rents have risen in step with home prices. As home values rise, renters become more likely to stick to renting, taking pressure off home prices and demands on the housing supply. The push and pull between these two facets of the housing market keep the two markets roughly in balance.

However, an increasing number of white-collar professionals are reluctant to buy because of record-high home prices, rising mortgage rates, and the limited supply of housing that is continuing to haunt the global housing market. As a result, many have said they are renting instead, helping drive a frenzy for leased properties of all kinds and helping fuel the trend of offering above asking rents, which isn’t helping anyone. Real-estate agents from New York to Chicago and Atlanta say they see more people making offers above asking to lease homes and apartments they will never own.

To rent or to buy? It’s not that complicated!

Happy family with daughter holding keys from their new home, selective focus on hands, closeup.

As anyone who has ever rented will tell you, when it’s time to renew your lease, there is an expectation that the cost of rent will increase. Usually, the new monthly rental price will rise nominally, and it’s not that big of a deal for renters to absorb the increase. However, in today’s market, nearly every usual trend has been upended, and renting is no exception. Yet as more individuals experience sticker shock as they renew their rental agreements, with some increases being several hundred dollars more a month, many have begun to question the efficacy of renting for their future.

So as more frustrated buyers retreat from the market and steer toward renting, the savvy move to be made right now is buying a home. Homeownership remains a stable long-term investment despite the higher mortgage interest rates, because owning a home comes with certain tax benefits that renting does not, helping your money go further. Benefits such as deductions on mortgage interest, discount points, mortgage insurance, and property taxes will reduce your taxable income and help you keep more of your hard-earned money.

Another factor to keep in mind is that as the housing market cools off and bidding wars in the rental market increase, the price of homes is beginning to see price reductions from the seller’s side of the market, which indicates that now is a terrific time to consider becoming a homeowner.

Secure Your Future

Serious buyers understand that waiting will cost them more later. They should approach today’s competitive market of rising rates and low inventory as a motivating factor to buy sooner, not a reason to wait. Let’s connect today to see what homes are in your budget, prepare you to become a homeowner, and start building your wealth sooner rather than later.

June 15, 2022June 19, 2024

Home Equity Is Up – What’s Your Next Move?

Key Takeaways:

With home values continuing to rise, what are the best options to maximize your equity gains?
Now might be the perfect time to tap into your equity for a vacation home or investment property.
Don’t delay—contact us and put your home equity gains to work for you!

Homeowners Have Historic Equity Gains

It’s no secret that home equity values are at historic highs right now. Surging home prices have caused tappable equity to set a record in 2021, hitting $9.9 trillion, mortgage technology and data firm Black Knight Inc reports. The firm also noted that the average mortgage holder has $185,000 in tappable equity.

For current homeowners, these recent gains are tremendous and mean all your hard work has paid off. Of course, the big question in many homeowners’ minds now is: what should I do with the equity I’ve gained? So if you’ve been calculating your equity gains and wondering what the best thing to do with them is, let’s explore some ways you could maximize your equity growth.

Renovations, Repairs, and Restoration

Happy smiling woman in goggles with saw sawing wooden board

With the current equity built up in your home, you can borrow against it by taking out a home equity loan or line of credit (HELOC) and using that money for whatever you want. While homeowners commonly borrow against their equity to fund renovations or repairs, you can take out a home equity loan to use for any goal you have in mind. But if your home desperately needs a new roof, windows, newer energy-efficient appliances, or even an addition, tapping into your equity to make that happen is warranted. And with recent drops in lumber costs, this may be an ideal time to get that extra space you’ve been dreaming of.

There’s also the option to do a cash-out refinance. With a regular refinance, you typically borrow the exact amount you owe on your mortgage. However, with a cash-out refinance, you borrow more than your remaining mortgage balance and receive a check for the difference. And as with a home equity loan or HELOC, you can use that money for any purpose you choose.

Purchase a Second Property

Senior couple standing outside log cabin in countryside

According to CoreLogic, nationally, home prices increased 19.1% between January 2021 and January 2022, which has been fantastic news for current homeowners. Equity gains don’t just benefit those looking to sell their homes to walk away with a substantial profit. If you don’t have plans to sell your home in the near term, having a lot of equity in it affords you plenty of different options to put that money to good use.

Consider using your existing equity to buy the vacation home you’ve been dreaming of, or to purchase income-producing real estate that may generate passive income and possibly lower your monthly costs, or other investment assets. Until recently, financing a vacation home was the same as financing a primary residence. But the Federal Housing Finance Agency recently announced increases to upfront fees for second-home loans that took effect on April 1, 2022. As a result, homeowners have been encouraged to tap equity from their primary residence to pay for their secondary property.

Make a Smart Move

Your decision on what to do with your equity gains depends upon your financial situation and long-term real estate goals. So as you’re watching your equity grow and wondering how to put that money to good use, having a trusted, experienced real estate team behind you is your best first step to figuring that out. You’ll rest easy knowing that we’ve seen the ups and downs of the market over the years, so contact us today to discuss your options!

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!

May 1, 2022December 20, 2024

Mortgage Repayment After COVID-19 Forbearance

With the dust of COVID-19 settled, that means the resumption of mortgage payments for many Americans. In a Covid-19 forbearance real estate market, it may be challenging to know the correct next step after the last couple of years.

Key Takeaways:

The CARES Act kept homeowners in their homes with mortgage forbearance
There’s plenty of options to help homeowners transition to repayment
No one needs to face foreclosure – contact us today to discuss your options!

Mortgage forbearance helped homeowners

The good news is that there’s no bad news! The CARES Act enacted by Congress allowed homeowners to postpone their monthly mortgage payments. This policy worked, because evictions have not been as severe as many feared, and the calamity of the 2008 housing market is not going to repeat itself in 2022.

The Mortgage Bankers Association estimates that approximately 525,000 homeowners are still in forbearance plans. If you are one of those homeowners moving into a post-forbearance future, there’s no reason to panic: plenty of help is available. Let’s look at the different post-forbearance options and determine which one best suits your needs.

The CARES Act changed the mortgage landscape

Meeting with real state agent signing mortgage loan at bank

When the pandemic struck in early 2020, rumors of the 2008 housing crisis repeating itself soon infused nearly every real estate conversation. Understandably, homeowners have been nervous about repeating history, with fears of eviction and potential homelessness genuinely gripping many Americans. However, contrary to the Great Recession, homeowners have been better protected against the uncertainties of the Covid-19 pandemic.

When Congress declared that homeowners could postpone their mortgage payments for 18 months with no penalty (known as forbearance), this singular act of Congress truly benefited the American homeowner. Additionally, many servicers of mortgages not backed by the federal government voluntarily did the same. And with substantially more equity in their homes than they had at the start of the Great Recession, plus the ability to refinance at historic lows during the pandemic, homeowners were in better financial shape to weather the storm.

Understanding your mortgage forbearance repayment options

mortgage calculator with model house on desk.

Thankfully you’ve got plenty of helpful options as you move out of forbearance and resume your monthly mortgage payments. Here are five options to restart your mortgage payments:

A Reinstatement means paying the total forbearance amount all at once. Remember, this is only one option to discuss with your mortgage lender. You do not have to take this option.
A Repayment Plan allows you to bring your mortgage current over some time (up to 12 months). A repayment plan is an agreement that will enable you to repay the forbearance amount on your mortgage by making additional monthly payments and your regular monthly mortgage payments.
A COVID-19 Payment Deferral allows you to bring your mortgage current by delaying repayment of forbearance amounts without changing other mortgage terms. This option may be available if you cannot afford a reinstatement or repayment plan. You will not be charged interest on the forbearance amounts. However, all sums will be due if and when the property sells.
A Loan Modification permanently changes the terms of your actual loan. Some common examples are changes to your interest rate or loan term. But, surprisingly, and in another historic move to ensure the stabilization of the housing market, the Federal Housing Administration (FHA) announced in April of 2022 that homebuyers would be able to select a 40-year mortgage for the first time.
A Loan Refinance is perhaps one of the more traditional options, and even if you have resolved or are resolving your forbearance plan, you may be eligible to refinance your loan.

Forbearance doesn’t stop you from selling your home

smiling couple holding sold red card at home with cardboard boxes

The COVID-19 pandemic produced challenges that impacted homeowners’ ability to make timely mortgage payments. Thankfully, taking advantage of the forbearance doesn’t stop you from selling your home, even if you haven’t restarted payments yet. If you can no longer afford your mortgage, but you’ve built up enough equity in your home, one option is to sell it and use the proceeds to help pay off your mortgage and any missed payments during forbearance.

Make an Informed Decision

With more financing options available today than ever before, there’s no reason to worry about mortgage repayment. Contact us today to find out the true value of your home. Then, you’ll be informed and can make a sound financial decision about what type of mortgage is right for you.

If you are ready to move back into the real estate market to buy or sell, or just need to find out more about Covid-19 forbearance, call us at (918) 665-8559.

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.

February 15, 2022June 19, 2024

The three most common questions first-time sellers ask our real estate team.

It’s common to be overwhelmed by the number of questions you inevitably run into when you’re selling your home. Does the doorbell work? Are the exterior colors suitable for today’s market? Am I getting what my home is worth? From marketing the house to negotiating a fair market price and making repairs, here are some of the most common questions sellers ask us and some helpful strategies you can utilize when selling your home.

Question 1: How do I know what my home is worth?

Image of a wooden home and a stack of cash representing home value.

Ultimately, a home is worth what someone will pay for it. However, there are three values attributed to any home currently on the market:

What the seller thinks it’s worth.
What the buyer assumes it’s worth.
What a professional appraiser will think it’s worth.

One of the most critical aspects of selling your home is quickly getting those three numbers to align. Most real estate agents freely perform a comparative market analysis of home values to establish a property’s value to determine a selling price. They look at factors such as square footage, construction quality, condition of the home and neighborhood, design, and floor plan, plus all of the neighborhood’s features, like transportation availability, nearby shopping, and area schools.

Question 2: How do I get my home ready to sell?

Image of a couple painting the walls in their home.

Nearly all home purchase contracts include an inspection clause. This term is a buyer contingency that allows buyers to back out of the deal if numerous defects present themselves or negotiate their repair.

The trick to getting your home ready for the market is not to overspend on pre-sale improvements, especially if few houses are on the market with many buyers willing to pay almost any price. On the other hand, making such investments is the only way to stage and sell your house, even in a market that favors sellers.

Here are some quick highlights of expected home improvements and staging tips that every homeowner should have on their checklist going into negotiations:

Make sure that your roof is up-to-date; this will get you the highest return on your investment.
Fix any maintenance issues, such as leaks, plumbing problems, drafts, rusty areas, squeaky floorboards, mold, or mildew well before buyers can find them.
Applying a fresh coat of paint will make rooms look brand-new!
Polishing lighting fixtures and upgrading light bulbs is an inexpensive way to make a home look newer and brighter.
Less clutter helps a home look larger inside, so remove extra objects or furniture to give your home a more spacious feel.

Question 3: How do I pick the right offer on my home?

Image of a woman considering her home selling options with an agent.

While seeing a bid over-asking price will make your heart race, it’s best to take a deep breath and consider the whole picture. Buyers include contingencies, like inspection, financing, and appraisal, in their offers. The fewer contingencies, the better it is for the seller.

You can consider an all-cash offer to eliminate the risk of contingencies. Anywhere from a quarter to a third of home sales now are cash offers, depending on the market, so this is more common than you may think!

What’s your next step after your home sells? The closing timeline can influence choosing your best offer—perhaps you’re in a hurry to move into your new place, or you need some extra time to finish packing. There’s always a lot to consider, and each seller’s needs are different.

The ultimate question: what are my net proceeds?

Because the real estate market is continually changing, and market fluctuations affect property values, your list price, sale price, and closing costs must be based on the most recent comparable sales in your neighborhood. To find out the current value of your home, contact our team today! Selling your home is a team effort that yields more success with the help of the most qualified and skilled realtors.

February 1, 2022June 19, 2024

How Will Inflation Affect the Housing Market?

Key Takeaways:

The historic low housing inventory creates value opportunities in competitive housing markets.
Anticipation of new home listings to hit a 10-year high as some owners see right now as the best time to sell.
Condo and rental demand are likely to surge as inventory supply chain issues impact the housing market.

This Year Will Bring Balance to the Housing Market

After two consecutive years in which words like “unprecedented,” “historic,” and “white-hot” have been buzzing about, we can now add “inflation” to the list.

What is inflation, and how will it affect the real estate market in 2022?

Real estate is not immune from the inflationary effects of declining purchasing power on an economy. When prices go up, so do the costs associated with real estate. In a nutshell, that’s how inflation works; like a rising tide lifts all boats, so does inflation with rising costs. However, there are always reasons to be genuinely confident in real estate’s proven ability to hedge against inflation and be profitable.

Here are three particulars and tips to help you navigate these inflationary waters and better prepare you to make your move when you decide it’s time to do so.

#1: Low Housing Inventory Drives Values

Dictionary showing the word inflation being highlighted.

With the market expected to remain undersupplied throughout the year and with this year already seeing historic low numbers in housing inventory, continued supply chain issues, and material costs resulting from inflationary pressure will undoubtedly influence the market. Many analysts are anticipating a modest 3% growth in home values, compared to the 24% return that last year saw.

Historically, it is well-documented that real estate remains profitable when inflation affects an economy. One reason is that landlords can always pass their cost increases off to their tenants. But the real lesson here is the age-old axiom that scarcity creates value. So instead of seeing the record-low number of housing inventory as something to steer clear of, it means that while there may be much competition in home buying, that’s because of the value of being a homeowner.

#2: New Listings to Hit 10-Year High

Image showing a couple signing real estate documents with money in front of them.

The end of double-digit price growth in home values will also encourage more homeowners to cash out finally, which will create more inventory in the market. But as the market settles down and becomes more balanced, homeowners will also be more inclined to list their homes to offset inflationary pressures elsewhere, though it will not be enough to meet the expected historical demand in 2022. This increase in listings of existing homes will also coincide with a slight increase in the listings of newly constructed homes, similarly expected to be the highest in a decade.

New home inventory should increase from 2021’s bottom, but we anticipate the market will remain undersupplied. In particular, the entry-level supply of new home construction will remain highly constrained.

#3: Condo and Rental Demand Will Take Off

Image showing a luxury condominium overlooking several swimming pools.

2022 will also see the end of mortgage forbearance, which along with inflationary pressures, will cause many homeowners to sell and rent instead. This surge in rental costs and demand will create opportunities for others looking to get into the housing market. As a result, expect rents to increase 7% by the end of 2022, more than double the predicted year-over-year growth in home prices of 3%, once again proving that homeownership is always a more reliable use and investment of your money.

As the pandemic subsides, more people will live in cities once again where renting is more common. Additionally, the strong labor market will cause many movers wanting to move into a new town the opportunity to get to know their new city before they commit to homeownership.

The Market Is Moving—Get Started Now

There’s always much to consider when buying a new home. Whether you’re a first-time home buyer or looking for your next, understanding the more significant economic trends is always important to maximize your efforts’ success. So contact us today and let us know how we can help support you in your journey.