In today's housing market, homeowners have a great opportunity to sell their house and receive the best terms for their personal situation. That's because there's a limited number of homes for sale, which is creating competition among buyers. Right now, homebuyers want three things:
These buyer needs give you an amazing advantage – also known as leverage – when you sell.
You might already realize this enables you to sell at a good price, but you're also in a great position to get the best terms to suit your needs.
According to the latest Realtors Confidence Index from the National Association of Realtors (NAR), the average home sold is receiving 4.8 offers. That's why there's a good chance you'll get offers from multiple buyers who are willing to compete for your house. When you do, you should look closely at the terms of each offer to find out which one has the best options for you.
And if you have questions at any point in the process, remember your trusted real estate advisor can help. They're experts who understand the fine print, know how to compare the terms of various offers, and will help you select the best one for your situation.
If you're thinking of selling your home, know buyer demand in today's market gives you a great opportunity to get the best terms and price when you sell your house. Let's connect today to discuss how much leverage you have as a seller in today's market.
Downsizing frees you from the time, energy, and effort required from living in a larger home.
People have become obsessed with the idea that bigger is better. You see it everywhere: bigger burgers, bigger cars, and bigger houses. It's time to set the record straight — selling your house and downsizing your home might actually be a better lifestyle choice for you.
Choosing to buy a smaller home often has to do with the desire to live a more simple life. If you're trying to decide whether downsizing is the right move for you, here are some benefits to consider before taking the plunge.
Downsizing your home is about doing more with less. Rather than spending your time and energy maintaining a larger home, you may enjoy your life more by living in a smaller one.
There's no doubt that you're going to be busy while you work to sell your home, but focusing your energy in the right places will make your life much easier. Better yet, a bit of focused prep can make your home more appealing to potential buyers and ultimately makes it easier to find the right match as quickly as possible. Use this "survival guide" for selling your home to get started.
Your real estate agent will help make sure that people show up, so the most important thing you can do when selling a house is to make sure that your home is always ready to show. That part becomes significantly easier to maintain after you get the initial work out of the way, as long as you keep up with it consistently. With a little teamwork, you'll find the right buyer in no time.
Even if you haven't been following real estate news, you've likely heard about the current sellers' market. That's because there's a lot of talk about how strong market conditions are for people who want to sell their houses. But if you're thinking about listing your house, you probably want to know: what does being in a sellers' market really mean?
The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows housing supply is still very low. There's a 2-month supply of homes at the current sales pace.
Historically, a 6-month supply is necessary for a normal or neutral market where there are enough homes available for active buyers. That puts today deep in sellers' market territory (see graph below):
When the supply of houses for sale is as low as it is right now, it's much harder for buyers to find homes to purchase. That creates increased competition among purchasers which can lead to more bidding wars. And if buyers know they may be entering a bidding war, they're going to do their best to submit a very attractive offer upfront. This could drive the final price of your house up.
And because mortgage rates and home prices are climbing, serious buyers are motivated to make their purchase soon, before those two things rise further. That means, if you put your house on the market while supply is still low, it will likely get a lot of attention from competitive buyers.
The current real estate market has incredible opportunities for homeowners looking to make a move. Listing your house this season means you'll be in front of serious buyers who are ready to buy. Let's connect so you can jumpstart the selling process.
According to a recent survey from the National Association of Realtors (NAR), one of the top challenges buyers face in today's housing market is finding a home that meets their needs. That's largely because the inventory of homes for sale is so low today.
If you're looking to buy a home, you may have noticed this yourself. But there is good news. Recent data shows more sellers are listing their houses this season, which may give you more options for your home search.
The latest data from realtor.com shows the number of listings coming onto the market, known in the industry as "new listings," has increased since the start of the year (see graph below):
This indicates more sellers are listing their homes for sale each month this year. And according to realtor.com, this growth is expected to continue. Their research finds the majority of potential sellers plan to list their homes over the next six months. Realtor.com says:
". . . markets may see a noticeable bump in the number of homes for sale as we move through spring and into summer. A majority of homeowners planning to sell this year indicated that they aim to list in the next six months, with almost 10% having already placed their properties on the market."
But while new listings are increasing, it's important to know they're also selling quickly. The latest Realtors Confidence Index from NAR shows the median days on market for recently sold homes since the beginning of the year (see chart below). The time on market has decreased month-over-month. That means homes are selling even faster than they did the previous month.
While a low-inventory market is difficult to navigate as a buyer, there is hope. The growing number of new listings and the expectation more sellers will list their homes in the coming months is great news if you've had a hard time finding a home that fits your needs. Just remember, those new listings are going fast. That means you'll want to keep your foot on the gas and be ready to act if you find a home you love this season.
Your agent can help you stay on top of the latest listings in your area so you can find the home that's right for you and submit your strongest offer as quickly as possible.
If you've been having a hard time finding your dream home, stick with your search. More options are coming to market and your ideal home could be one of them. Let's connect so you can stay up to date on the latest listings in our market, so you can be ready to move fast when you find the one that's right for you.
Many people are wondering: will home prices fall this year? Whether you're a potential homebuyer, seller, or both, the answer to this question matters for you. Let's break down what's happening with home prices, where experts say they're headed, and how this impacts your homeownership goals.
"Price appreciation averaged 15% for the full year of 2021, up from the 2020 full year average of 6%."
So why are prices climbing so much? It's because there are more buyers than there are homes for sale. This imbalance is expected to maintain that upward pressure on home prices because homes for sale are a hot commodity in today's low-inventory housing market.
Experts say the housing market isn't set up for a price decline due to that ongoing imbalance between supply and demand. In the latest home price forecasts for 2022, they're calling for ongoing appreciation throughout the year (see graph below):
While the experts are forecasting more moderate price appreciation, the 2022 projections show price gains will remain strong throughout this year. First American explains it like this:
"While house price growth is expected to moderate from the rapid pace of 2021, strong home buyer demand against a backdrop of historically tight inventory of homes for sale will likely keep appreciation positive in the coming year."
The biggest takeaway is that none of the experts are projecting depreciation. If you're a homeowner thinking about selling, the higher price appreciation over the last two years has been great for your home's value, but it's also something you should factor in when planning your next steps. If you'll also be buying a home after selling your current house, you shouldn't wait for prices to fall. Waiting will only cost you more in the long run because climbing mortgage rates and rising home prices will have an impact on your next home purchase. Freddie Mac says:
"If you're thinking about waiting until next year and that maybe rates are higher, but you'll get a deal on prices – well that's risky. It may be more advantageous to purchase this year relative to waiting until 2023 at this time."
If you're thinking of selling to move up, you shouldn't wait for prices to fall. Experts say prices will continue to appreciate this year. That means, if you're ready, buying your next home before prices climb further may make the most financial sense. Let's connect to begin the process of selling your current home and looking for your next one before prices rise higher.
If you're planning to buy a home, it's critical to understand the relationship between mortgage rates and your purchasing power. Purchasing power is the amount of home you can afford to buy that's within your financial reach. Mortgage rates directly impact the monthly payment you'll have on the home you purchase. So, when rates rise, so does the monthly payment you're able to lock in on your home loan. In a rising-rate environment like we're in today, that could limit your future purchasing power.
Today, the average 30-year fixed mortgage rate is above 5%, and in the near term, experts say that'll likely go up in the months ahead. You have the opportunity to get ahead of that increase if you buy now before that impacts your purchasing power.
The chart below can help you understand the general relationship between mortgage rates and a typical monthly mortgage payment within a range of loan amounts. Let's say your budget allows for a monthly mortgage payment in the $2,100-$2,200 range. The green in the chart indicates a payment within that range, while the red is a payment that exceeds it (see chart below):
As the chart shows, you're more likely to exceed your target payment range as mortgage rates increase unless you pursue a lower home loan amount. If you're ready to buy a home, use this as your motivation to purchase now so you can get ahead of rising rates before you have to make the decision to decrease what you borrow in order to stay comfortably within your budget.
"Get preapproved with where rates are today, but also consider what would happen if rates were to go up, say another quarter of a point, . . . Know what that would do to your monthly costs and how comfortable you are with that, so that if rates do move higher, you already know how you need to adjust in response."
No matter what, the best strategy is to work with your real estate advisor and a trusted lender to create a plan that takes rising mortgage rates into consideration. Together, you can look at your budget based on where rates are today and craft a strategy so you're ready to adjust as rates change.
Even small increases in mortgage rates can impact your purchasing power. If you're in the process of buying a home, it's more important than ever to have a strong plan. Let's connect so you have a trusted real estate advisor and a lender on your side who can help you strategize to achieve your dream of homeownership this season.