How to Sell Your House in Today’s Housing Market

• If you’re thinking about selling your house, you may have heard about the housing market slowing down in recent months. While it’s still a sellers’ market, the peak frenzy the market saw over the past two years has cooled some. If you’re asking yourself if you’ve missed your chance to sell your house and make a move, the good news is you haven’t – motivated buyers are still out there. But you do need to price your house right for today’s market. Here’s why.

  As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

  “Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”

  It’s true buyer demand has slowed over the past few months as higher mortgage rates made it more expensive to buy a home. The result is fewer bidding wars and less competition among buyers (see visual below):

  But don’t forget – that’s compared to the severely overheated market we saw over the past two years. According to the latest Confidence Index from NAR:

  “. . . 39% of homes sold above list price, down from 51% a month ago and 50% a year ago.”

  While this is a slower pace than even one month ago, serious buyers are still actively in the market, and they’re buying homes that are priced right. In fact, the Confidence Index also notes the average home is selling in just 14 days.

  If you’re aiming to sell your house, be sure you’re working with your agent to price it for today’s housing market. As buyer demand softens, it’s important to understand this isn’t the same market as last year. It’s not even the same market as just a few months ago. But it is still a sellers’ market.

  If you’re ready to sell your house, seek the advice of a real estate professional. In some cases, you’ll need to adjust your expectations accordingly to meet the market where it is today. Selma Hepp, Interim Lead, Deputy Chief Economist at CoreLogic, explains what’s happening and what it means when you sell:

  “Signs of a broader slowdown in the housing market are evident, . . . This is in line with our previous expectations and given the notable cooling of buyer demand due to higher mortgage rates. . . . Nevertheless, buyers still remain interested, which is keeping the market competitive — particularly for attractive homes that are properly priced.”

  Bottom Line

  While the housing market has cooled from its overheated frenzy, it’s still a sellers’ market. Let’s connect so you understand what’s happening with buyer demand and home prices in our local area as you get ready to enter the market.

Expert Housing Market Forecasts for the Second Half of the Year

The housing market is at a turning point, and if you’re thinking of buying or selling a home, that may leave you wondering: is it still a good time to buy a home? Should I make a move this year? To help answer those questions, let’s turn to the experts for projections on what the second half of the year holds for residential real estate.

Where Mortgage Rates Will Go Depends on Inflation

While one of the big questions on all buyers’ minds is where will mortgage rates go in the months ahead, no one has a crystal ball to know exactly what’ll happen in the future. What housing market experts know for sure is that the record-low mortgage rates during the pandemic were an outlier, not the norm.

This year, rates have climbed over 2% due to the Federal Reserve’s response to rising inflation. If inflation continues to rise, it’s likely that mortgage rates will respond. Greg McBride, Chief Financial Analyst at Bankrate, explains it well:

“Until inflation peaks, mortgage rates won’t either. Without improvement on the inflation front, we don’t know where the interest rate ceiling will be.”

Whether you’re buying your first home or selling your current house to make a move, today’s mortgage rate is an important factor to consider. When rates rise, they impact affordability and your purchasing power. That’s why it’s crucial to work with a team of professionals, so you have expert advice to help you make an informed decision about your best move.

The Supply of Homes for Sale Projected To Continue Increasing

This year, particularly this spring, the number of homes for sale has grown. That’s partly due to more homeowners listing their houses, but also because higher mortgage rates have helped ease the intensity of buyer demand. Moderating buyer demand slows down the pace of home sales, which in turn helps inventory rise.

Experts say that growth will continue. Recently, realtor.com updated their 2022 inventory forecast. In the latest release, they increased their projections for inventory gains dramatically, going from a 0.3% increase at the beginning of the year to a 15.0% jump by the end of 2022 (see graph below):

More homes to choose from is great news if you’re craving more options for your home search – just know that there isn’t a sudden surplus of inventory on the horizon. Housing supply is still low, so you’ll need to partner with an agent to stay on top of what’s available in your market and move fast when you find the one. It’s not going to be easy to find a home, but it certainly won’t be as difficult as it has been over the past two years.

Home Price Forecasts Call for Ongoing Appreciation

Due to the imbalance between the number of homes for sale and the number of buyers looking to make a purchase, the pandemic led to record-breaking increases in home prices. According to CoreLogic, homes appreciated by 15% in 2021, and they’ve continued to rise this year.

Even though housing supply is increasing today, there are still more buyers than there are homes for sale, and that’s maintaining the upward pressure on home prices. That’s why experts are not calling for prices to decline, rather they’re forecasting they’ll continue to climb, just at a more moderate pace this year. On average, homes are projected to appreciate by about 8.5% in 2022 (see graph below):

Selma Hepp, Deputy Chief Economist at CoreLogic, explains why the housing market will see deceleration, but not depreciation, in prices:

“The current home price growth rate is unsustainable, and higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”

For current homeowners looking to sell, know your home’s value isn’t projected to fall, but waiting to make your purchase does mean your next home could cost more as home prices continue to appreciate. That’s why, if you’re thinking about buying your first home or you’re ready to make a move, it may make sense to do so now before prices climb higher. But rest assured, once you buy a home, that price appreciation will help grow the value of your investment.

Bottom Line

Whether you’re a homebuyer or seller, you need to know what’s happening in the housing market, so you can make the most informed decision possible. Let’s connect to discuss your goals and what lies ahead, so you can determine the best plan for your move.

What Does an Economic Slowdown Mean for the Housing Market?

• According to a recent survey, more and more Americans are concerned about a possible recession. Those concerns were validated when the Federal Reserve met and confirmed they were strongly committed to bringing down inflation. And, in order to do so, they’d use their tools and influence to slow down the economy.

  All of this brings up many fears and questions around how it might affect our lives, our jobs, and business overall. And one concern many Americans have is: how will this affect the housing market? We know how economic slowdowns have impacted home prices in the past, but how could this next slowdown affect real estate and the cost of financing a home?

  According to Mortgage Specialists: 

  “Throughout history, during a recessionary period, interest rates go up at the beginning of the recession. But in order to come out of a recession, interest rates are lowered to stimulate the economy moving forward.”

  Here’s the data to back that up. If you look back at each recession going all the way to the early 1980s, here’s what happened to mortgage rates during those times (see chart below):

  As the chart shows, historically, each time the economy slowed down, mortgage rates decreased. Fortune.com helps explain the trend like this:

  “Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”

  And while history doesn’t always repeat itself, we can learn from it. While an economic slowdown needs to happen to help taper inflation, it hasn’t always been a bad thing for the housing market. Typically, it has meant that the cost to finance a home has gone down, and that’s a good thing. 

  Bottom Line

  Concerns of a recession are rising. As the economy slows down, history tells us this would likely mean lower mortgage rates for those looking to refinance or buy a home. While no one knows exactly what the future holds, you can make the right decision for you by working with a trusted real estate professional to get expert advice on what’s happening in the housing market and what that means for your homeownership goals.

Help Your Real Estate Agent Help You With These Easy Preparations

Help Your Real Estate Agent Help You With These Easy Preparations

Whether you are putting your home on the market or you are looking to buy a new house, it’s a huge step for anyone. Real estate isn’t just an investment — for most of us, it is also a life-changing decision that affects the entire family. That’s why you want to make sure you enter the market with a friend in the business by working with Sara Starr Homes, who can help you every step of the way. 

Real estate agents do more than hang up signs. They are educated and licensed to help people with the ins and outs of dealing with banks, bureaucracies, and the never-ending mountains of paperwork. Basically, a good realtor is your guiding light through the dark moments that come with the whole real estate experience. Of course, as great as having an agent on your side is, there are things you can do to help them out. Before you think of hiring a real estate agent, help them by doing the following things as either property sellers or home buyers. 

What to Do If You are Selling Your Home

• Sellers can prepare before contacting an agent by decluttering their belongings. The more stuff you can eliminate around the house, the easier it is for your realtor to spot updates and repairs you can make to attract buyers and get the best return on investment. Put furniture, family heirlooms, and other large items you don’t necessarily need at the moment in a personal storage unit until it is time yourself to move.
  

• Getting a head start on staging your home can help out a realtor, as well. While most of us aren’t interior designers with the knowledge and experience to curate decor in a way to appeal to a wide-reaching audience, there are home staging measures that even the most novice decorator can complete themselves.
  

• You may want to gather documents, including covenants of HOA, and things to support specific data including a legal description of the home. Having all this information handy and in one place allows your agent to organize pertinent information on leaflets and advertisements to attract potential home buyers. 

• Most importantly, do you have somewhere to go when your home sells? 

What to Do if You Are Buying a Home

• Buyers should get pre-approved for loans or learn what steps to take if not approved. At the very least, you can get pre-qualified for a home loan or mortgage online or over the phone. Contact a lender and provide them with basic information and an estimated credit score to get an idea of how much you can afford. 

• Remember that you have options when it comes to financing, but it’s up to you to figure out what those options are. Buyers should ask lenders for special financing help or if there are special programs available. Lenders should be treated like realtors, in that it's about good relationships. Do forget that you can reach out to a real estate agent for recommendations if you need help.  

• Buyers should scout out areas of interest and know when they want to buy, including things like preferred school district and area within a specific town or city. Attend open houses in potential neighborhoods to get a good idea of what is available. You can figure out what neighborhoods you may be interested in by cross-referencing your pre-approved mortgage rate with the median listing prices provided for the area.

Both home sellers and buyers can help their real estate agents by doing some of the legwork before hiring one. Home sellers can prepare their properties to get the highest resale value by reducing clutter, doing preliminary staging, and gathering necessary documents that can be helpful when it comes to drafting advertisements and materials. Buyers can help by contacting lenders for pre-approval and information regarding financing options while scoping out neighborhoods and open houses to get an idea of what they want from a new home. 

At Sara Starr Homes, we work with buyers and sellers in all price ranges. We are here to make the buying and selling process easier. With an eye for design, a feel for the city, and genuine hospitality, we help you sell your house and find your new home and community. To get started, call (206) 432-6648. 

Patrick Young

How A Realtor Can Make The Home Buying Process A Breeze For People With Disabilities

Are you looking for a disability-friendly home? On the surface, it might seem as though your house hunting process will be like everyone else’s, and, in many ways, it is: look for a home, buy a home, and move into your home. But, there are subtle nuances that can make it a bit of a challenge. Using a real estate agent experienced in the buying, selling, and moving process for people with disabilities can eliminate many of the hurdles.

Why Use A Buyer's agent?

When you use a buyer’s agent, such as Sara Starr, you get not only her expertise in the local real estate market but also a skilled negotiator that provides undivided loyalty and will advocate for you and your needs every step of the way. Among other assistance your buyer’s agent can offer, you’ll receive:

• A comprehensive market analysis so that you can make the best offer based on current selling prices.

• Personal assistance choosing a home that has features that matter to you.

• Detailed knowledge of your rights in the housing market. Realtor.com explains that you have the right to be free of discrimination during the home-buying process.

Financing

If you’re buying your first home as a person with a disability, you might feel as though you are facing an uphill battle. Fortunately, getting a loan may not be as difficult as you anticipate. There are many ways to obtain financing, including using your disability income and looking for loans that are geared specifically toward persons with disabilities. The Mortgage Reports notes that Fannie Mae’s HomeReady program has flexible terms for low-to-moderate income individuals with a credit score of at least 620.

Research Is Key

Before you apply for a loan, you want to get all of your financial documents together. You’ll also need to grab a calculator and punch in some numbers to decide how much you can afford. Don’t forget to check your credit score, and spend some time in the area making sure there are amenities and services available that meet your needs. Check to see if there is a local disability advocate group or networking organization in your new hometown. This is important if you wish to begin socializing or building your network immediately.

Moving Day Preparations

Fast forward. You’ve found the home, got your financing approved, and closing day is approaching. Now, you’ll have to handle the practical logistics. Ideally, you can hire a moving company that already has some experience moving special equipment and accessibility aids. Keep in mind that you’ll need to budget for this as well, as your movers will charge you based on not only the distance and weight of your furniture and personal belongings, but also how quickly you need your new home furnished. This last point is crucial if you have certain items that you must have on move-in day that you cannot transport in a vehicle.

There are many additional steps on your road toward home ownership as a person with disabilities. But, those above are the major milestones, and they can put you in a better position to see other tasks that you have to complete before you make your move. Remember, it’s a marathon, not a sprint, and you’ll need to be patient and persistent to find the home of your dreams, especially in a competitive market.

Are you looking for an honest and ethical realtor that can help you find a home? Contact Sara Starr today at sara@metropolistgroup.com or call her directly at 206.432.66482.

IMAGE VIA PEXELS