A Changing Market
The market is changing. The heavy seller’s market we experienced for a good 15 months is no more. It is still a seller’s market, but not drastically so. Demand has dropped significantly due to inflation, rising cost of living, and mortgage interest rates continuing to rise. The median sales price remains largely unchanged since late March. I wanted to share some insight from NAR chief economist Lawrence Yun that provides a good viewpoint on these issues and how they are impacting the housing market and overall economy.
Still A Good Time to Buy
While housing affordability has become a significant issue if you can afford to buy it’s still a good time to do so. It’s important we remember there is essentially no data to suggest a pullback in housing prices. In fact, all data points to housing prices continuing to rise at much more normal rates of 3-5% annually. Interest rates are expected to increase in the short term, but with very little volatility. The odds are good that if you tried to wait for a slightly better interest rate the increase in housing prices over the course of several months would eliminate any potential gain. I encourage buyers to buy now if they are able and find a home they love. If interest rates change significantly in a few years you can always refinance.
The amount of equity in a vast majority of homes has never been higher. You will still get the highest price for your property in history. However, it can take a little bit longer to sell. While homes can still sell quickly I would encourage sellers to begin to plan for 2-3 months of marketing time in most situations, and still expect a 30-45 day closing period after that. Doing some work upfront to improve the curb appeal, fix minor repairs, and make sure the home shows well have also become more important. Demand has decreased slightly, and there are more homes on the market than there has been in almost two years!
As the number of listings continue to increase you need to ask how is your property standing out? Do you have good photos? What kind of advertising campaigns are being run for your property? Is your agent working to get feedback, and being available to answer questions as buyers get more patient and inquisitive? Factors that have mattered less these last two years are now important again as this market shifts back to something that is mostly normal. Reach out to any of our Roadrunners who you can find here: https://senterrealtors.com/our-agents for a free consultation on your home value, determine your equity, and the market conditions for your neighborhood.
Until next time!
-Shay Senter – President BHGRE Senter, REALTORS