5 Key points - Is this the right time to sell your home?
Navigating the world of real estate can be complex, especially when trying to determine the optimal time to sell your home. Various factors such as local inventory, market trends, and personal circumstances all play crucial roles. Understanding these elements can help you make a more informed decision. Let's dive into some key considerations. 1. Local Inventory One of the first things to consider is the local inventory of homes for sale. If the market is saturated with similar properties, it could put downward pressure on your home’s price. On the other hand, if inventory is low, you may have an opportunity to sell at a premium. Keeping an eye on local listings and reports from Realtors can provide a snapshot of the current inventory levels. 2. Market Trends Another essential element to ponder is the overall trend in the real estate market. Monitoring market trends can give you an idea of whether the market is favoring sellers or buyers. For instance, if you notice that homes are selling quickly and at asking prices or even higher, it’s likely a seller's market. Conversely, if homes are lingering on the market and selling below asking prices, it may be more prudent to speak to your Realtor to get a better pulse on what's happening in the market and work out a game plan. Market trends can often be interpreted from quarterly reports and data provided by real estate analysts. Just be mindful that things change quickly in the real estate market. And, just because there is a trend in a certain neighborhood or price point, does not mean that it will represent how the trends of other homes will affect the outcome of selling your home. 3. Personal Situation Your personal situation is perhaps the most subjective yet important factor. Whether you're relocating for a new job, upgrading to a larger home, or downsizing, these personal circumstances will inevitably affect your timing. Financial stability, family considerations, and lifestyle changes should also be part of your decision matrix. Selling a home is not just a financial transaction but a significant life event, so it's crucial that the timing aligns with your personal needs and circumstances. Be sure to communicate this with your Realtor so they plan for your needs accrodingly. 4. Buyer Demands Understanding buyer demands can also provide vital insights into the best time to sell. Are buyers in your area predominantly looking to make a move during summer vacation time? Or are you in a region where local extra cirricular activities increase sales activity as visitors pile into your area? Knowing the preferences of potential buyers can help you time the market more effectively. 5. Economy and Interest Rates The broader economic environment and interest rates play a significant role in the real estate market. When the economy is strong and interest rates are low, buyers are generally more willing to make purchases. Conversely, economic downturns and rising interest rates tend to throttle buyer enthusiasm. Staying abreast of economic forecasts and Federal Reserve announcements can provide you with foresight into how these larger forces might affect your local market. Your Realtor can also help by compiling a strategic marketing plan to navigate these conditions. ### Putting It All Together In conclusion, determining the right time to sell your home involves a multi-faceted analysis. Begin by speaking with your Trusted Advisor (your Realtor) and assessing the local inventory and market trends to gauge current conditions. Balance this with your personal situation and the specific demands of potential buyers in your area. Finally, keep an eye on the broader economic environment and interest rates to understand how they might influence buyers’ ability and willingness to purchase. By taking all these factors into account, you’ll be better equipped to sell your home at a time that maximizes your financial return while aligning with your personal and lifestyle needs. Real estate is as much an art as it is a science, but a well-rounded approach can help you make the most informed decision possible. Reach out to connect with us for a specific game plan to help you prepare for selling your home.
Real Estate Market Forecast: Opportunities for Home Buyers and Sellers in 2024
Real Estate Market Forecast: Opportunities for Home Buyers and Sellers in 2024 A growing share of home buyers and sellers sat on the sidelines last year as the pace of home sales continued its downward trajectory.1 In fact, since the Federal Reserve began its series of interest rate hikes in 2022, the combination of higher borrowing costs and record-high home prices has fostered the steepest real estate market slowdown since the 2008 recession.2 Priced out of the market, a generation of would-be buyers has been forced to delay their plans for homeownership.3 At the same time, current owners—reluctant to give up their pandemic-era mortgage rates—are waiting to sell, which has resulted in a sharp drop in listings.4 But there may be some relief in sight: In December, the Fed signaled that it was done raising interest rates—and suggested that it could cut rates by 0.75% over the coming year. While mortgages don’t directly follow the federal funds rate, they typically move in tandem—so cheaper home loans may finally be on the horizon.5 Lower mortgage rates should bring some much-needed movement back into the real estate sector. But with a market this fluid, the home buyers and sellers with an edge will be those who proactively leverage a real estate agent’s on-the-ground expertise and stay flexible so that they can quickly adapt to changes. What does that mean for you? Read on to learn more about the current state of the U.S. housing market, the potential opportunities for buyers and sellers, and economists’ predictions for the year ahead. HOME PRICES WILL REMAIN RELATIVELY STABLE Not even 8% mortgage rates could bring home prices crashing down in 2023, as some prospective home buyers may have hoped. In fact, on average, U.S. property values ended the year higher—with declines in some areas of the country offset by appreciation in others.6 Prices typically fall when rising interest rates drive down demand. So what’s keeping home values high? Mike Simonsen at Altos Research points to a nationwide housing shortage: “Declining home prices probably require that supply-and-demand imbalance, and what we have is really a balance. There's a balance between low demand and low supply.”7 Analysts expect that equilibrium to continue to prop up home prices in 2024, although the specific forecasts vary. For example, economists at Realtor.com predict that the median home price will fall slightly, by 1.7%, while those at Fannie Mae project modest price growth of 2.8%.6,8 However, experts widely agree: Mortgage rates will be the largest driver of property values. If rates fall faster than expected, more buyers will enter the market—which could send home prices soaring higher. What does it mean for you? There’s no evidence that home prices are headed for a major decline. So if you’re ready and able to afford a home, this is a great time to test the waters. The best bargains are often found in a slower market, like the one we’re experiencing right now. Contact us to discuss your goals and budget. We can help you make an informed decision about the right time to buy. And if you’ve been waiting to sell your home, this could be your year. Price growth has slowed, so now is the time to maximize your equity gains while minimizing your competition. Contact us for recommendations and to find out what your home could sell for in today’s market. MORTGAGE RATES SHOULD FINALLY TREND DOWN The best news we've got incoming for 2024? The extra-high mortgage rates that have weighed heavily on the real estate market may finally be headed south. At its December meeting, the Fed signaled that the worst is likely behind us and that it expects to cut its overnight rate in 2024. Analysts predict that mortgage rates will fall in lockstep.5 “Given inflation continues to decelerate and the Federal Reserve Board’s current expectations that they will lower the federal funds target rate next year, we likely will see a gradual thawing of the housing market in the new year,” said Freddie Mac’s Chief Economist Sam Khater following the announcement.9 The average 30-year fixed mortgage rate has already declined from an October high of around 8%, and analysts at Fannie Mae, the Mortgage Bankers Association, and Realtor.com all forecast that rates will trend down this year, ending 2024 closer to 6%.7 However, it’s not all good news: It appears that the days of 3% mortgage rates are firmly behind us. “As long as the economy continues to motor along, the new normal of higher rates is here to stay,” explains Greg McBride, chief financial analyst for Bankrate.4 So, when it comes to a home loan, borrowers may need to adjust their expectations. What does it mean for you? If you're a prospective home buyer, declining mortgage rates could give you the opportunity to lock in a more affordable monthly payment. And if you purchase before the market reheats, you could secure an especially good deal. To find the lowest rate, it pays to compare lenders. Ask us to refer you to a mortgage broker who can help you shop around for the best option. Sellers also have reason to celebrate buyers' lower interest rates: As the barriers to entry to the housing market decline, they could enjoy more or better offers. Reach out to discuss how we can help you maximize your home’s sales potential. LOWER RATES WILL BRING SOME BUYERS AND SELLERS BACK TO THE MARKET Over the past couple of years, higher mortgage rates have cooled home buyer demand. They’ve also delayed the plans of many home sellers, who have been reluctant to trade in their current mortgages for loans that are several points higher. With so many market participants playing the waiting game, the real estate sector has slowed significantly. National Association of Realtors (NAR) Chief Economist Lawrence Yun estimates that the number of existing home sales fell by 18% last year following a 17% decline in 2022.10 However, as financing costs tick down, sales volume is expected to rise. “Lower mortgage rates would help spur home sales activity, which [is] expected to increase in 2024 compared to 2023,” explains Selma Hepp, chief economist at CoreLogic. “Declines in mortgage rates will drive more sellers to trade their existing home and help add much-needed inventory to the market, leading to more transactions.”4 There’s also evidence that the patience of holdout home buyers may be waning, despite higher borrowing costs. A recent survey by Bank of America found that the number who are willing to wait for prices or mortgage rates to decline before making a purchase fell from 85% to 62% in just six months.11 “When it comes down to it, if buying a home is your goal and within your budget, the best time to buy is when you're ready financially and you can find a home that fits your needs,” Matt Vernon, head of consumer lending at Bank of America, advised in a recent release. “Even in the current interest rate environment, there are clear benefits to purchasing a home and beginning to build equity.”11 What does it mean for you? If you’ve been waiting to buy a home, you might want to consider purchasing before the competition picks up. Pent-up demand could bring a flood of buyers back into the market as mortgage rates decline. Contact us if you’re ready to begin your home search. If you’re hoping to sell this year, you may also want to act fast. An increase in listings will make it harder for your home to stand out. We can help you chart the best course to maximize your profits, starting with a professional assessment of your home’s current market value. Reach out to schedule a free consultation. THE HOUSING SUPPLY SHORTAGE WILL PERSIST Will home buyers who are eager for options have more homes to choose from this year? Yun thinks so. He believes sellers will soon grow weary of waiting to list. “Pent-up sellers cannot wait any longer. People will begin to say, ‘life goes on,’” the NAR economist speculated at a November conference. “Listings will steadily show up, and new home sales will continue to do well.”10 But not everyone agrees. Economists at Realtor.com forecast that inventory could drop by as much as 14% this year. The decline in existing homes for sale has been compounded by a persistent shortage of new construction, with single-family housing starts falling 10.3% in 2023 and 11.2% in 2022.6 Even so, newly-built homes are playing an increased role in easing the supply crunch, accounting for around one-third of all homes for sale in 2023—which was twice the historical average.12 But new construction alone isn’t expected to fill the inventory gap. According to First American Financial Corporation’s Chief Economist Mark Fleming, the U.S. currently has a shortfall of around one million homes, and conditions won’t ease until individual owners re-enter the market. “Only when more homeowners decide to sell, and then buy again, will housing supply and the pace of sales return to anything resembling normal.”13 What does it mean for you? Inventory remains tight, but buyers can benefit from the search expertise of a real estate professional. We can tap our extensive network to access off-market and pre-market listings while helping you explore both new construction and existing homes in our area. While sellers will continue to benefit from the low-inventory environment, they should be prepared to compete against brand-new homes. We can help you prep your property for the market and highlight the features most likely to appeal to today’s buyers. WE'RE HERE TO GUIDE YOU While national real estate forecasts can give you a “big picture” outlook, real estate is local. And as local market experts, we know what's most likely to impact sales and drive home values in your neighborhood. As a trusted partner in your real estate journey, we'll keep our ears to the ground so that we can guide you through the market's twists and turns. If you’re considering buying or selling a home in 2024, contact us now to schedule a free consultation. Let’s work together and craft an action plan to meet your real estate goals. The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs. Sources: CNN -https://www.cnn.com/2023/10/19/homes/existing-home-sales-september/index.html Goldman Sachs -https://www.gspublishing.com/content/research/en/reports/2023/10/23/2d814362-a656-4cb3-8586-bea8591188e3.html ABC News -https://abcnews.go.com/US/millennials-priced-homeownership-feeling-pressure/story?id=105032436 Bankrate -https://www.bankrate.com/real-estate/housing-market-2024/ CBS News -https://www.cbsnews.com/news/interest-rates-are-paused-heres-why-thats-good-news-for-homebuyers/ com -https://www.realtor.com/research/2024-national-housing-forecast NerdWallet -https://www.nerdwallet.com/article/mortgages/2024-homebuying-trends-property-line-november-2023 Fast Company -https://www.fastcompany.com/90991612/home-price-2024-outlook-fannie-mae Freddie Mac - https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-drop-below-seven-percent National Association of Realtors -https://www.nar.realtor/newsroom/nar-chief-economist-lawrence-yun-forecasts-existing-home-sales-will-rise-by-15-percent-next-year Bank of America -https://newsroom.bankofamerica.com/content/newsroom/press-releases/2023/12/bofa-report-shows-fewer-prospective-homebuyers-willing-to-wait-f.html Marketplace -https://www.marketplace.org/2023/11/27/mortgage-rates-new-home-sales/ First American -https://blog.firstam.com/economics/whats-the-outlook-for-the-housing-market-in-2024
Football and Real Estate
Football and Real Estate In the world of real estate, there are many parallels that can be drawn to the game of football. From sellers and market updates to the game plan and making the plays, the strategies and tactics used in both industries have striking similarities. And just like in football, having a reliable coach, such as a Realtor, can greatly influence the outcome of your real estate journey. When it comes to selling your home, having a solid game plan is crucial. Just like a football team meticulously plans their plays, sellers need to strategize on how to attract potential buyers and get the best value for their property. This involves setting a competitive price, staging the home to make it appealing to buyers, and having a marketing strategy in place. A Realtor can guide you through this process, helping you create a game plan that maximizes your chances of a successful sale. In football, making the plays on the field is what ultimately determines the outcome of the game. Similarly, in real estate, it's all about executing your game plan effectively. This means being proactive in marketing your property, responding promptly to inquiries, and negotiating with potential buyers. With the guidance of a Realtor, you can stay focused on making the right moves at the right time, enhancing your chances of a successful transaction. In both football and real estate, having a reliable coach is essential. Your Realtor is like the coach of your real estate team, providing you with valuable insights, advice, and support throughout the entire process. They have the knowledge and experience to guide you through the complexities of the real estate market, ensuring that you make informed decisions. Just like a football coach, they motivate you to stay focused on your goals and help you navigate any obstacles that may arise. In football, field goals are often the points that make or break a game. Similarly, in real estate, field goals represent the milestones and achievements that move you closer to your ultimate goal. It could be receiving multiple offers on your property, finding the perfect home as a buyer, or successfully negotiating a favorable deal. These field goals signify progress and success in your real estate journey, and your Realtor plays a vital role in helping you achieve them. However, just like in football, sometimes in real estate, you may take some hits or fumble along the way. Despite careful planning and execution, things may not always go as anticipated. There might be unexpected obstacles, market fluctuations, or other challenges that can impact your real estate transaction. But just like a football team doesn't give up after a fumble, you shouldn't let setbacks discourage you. With the guidance and support of your Realtor, you can navigate through these challenges and get back in the game. In conclusion, the world of real estate shares many similarities with the game of football. Both require a game plan, making the plays, and having a reliable coach to guide you. Field goals represent the milestones and achievements that move you closer to your goals, while taking hits or fumbling is an inevitable part of the journey. By understanding these parallels, you can approach your real estate journey with a winning mindset, knowing that with the right team and strategies in place, you can achieve your desired outcome. As some of you may (or may not know), I'm one of the Buffalo Bills biggest fans. I may not be in the field, but I am for sure in the game. Let's put a game plan together for you and make the winning score together!
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