The Benefits of Selling Now, According to Experts

 
 

If you’re trying to decide if now’s the time to sell your house, here’s what you should know.

The limited number of homes available right now gives you a big advantage. That’s because there are more buyers out there than there are homes for sale. And, with so few homes on the market, buyers will have fewer options, so you set yourself up to get the most eyes possible on your house.

Here’s what industry experts are saying about why selling now has its benefits:

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

“Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties.”

Selma Hepp, Chief Economist at CoreLogic:

“We have not seen the traditional uptick in new listings from existing homeowners, so undersupply of housing will continue to heighten market competition and put pressure on prices in most regions. Some markets are already heating up considerably, but price premiums that we saw last spring and summer are unlikely.”

Clare Trapasso, Executive News Editor at Realtor.com:

“Well-priced, move-in ready homes with curb appeal in desirable areas are still receiving multiple offers and selling for over the asking price in many parts of the country . . .”

Jeff Tucker, Senior Economist at Zillow:

“. . . sellers who price and market their home competitively shouldn’t have a problem finding a buyer.”

Bottom Line

If you’re thinking about selling your house, connect with a real estate advisor who can share the expert insights you need to make the best possible move today.

Learn more on Keeping Current Matters.

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Today’s Real Estate Market: The ‘Unicorns’ Have Galloped Off

 
 

Comparing real estate metrics from one year to another can be challenging in a normal housing market.

That’s due to possible variability in the market making the comparison less meaningful or accurate. Unpredictable events can have a significant impact on the circumstances and outcomes being compared.

Comparing this year’s numbers to the two ‘unicorn’ years we just experienced is almost worthless. By ‘unicorn,’ this is the less common definition of the word:

“Something that is greatly desired but difficult or impossible to find.”

The pandemic profoundly changed real estate over the last few years. The demand for a home of our own skyrocketed, and people needed a home office and big backyard.

  • Waves of first-time and second-home buyers entered the market.

  • Already low mortgage rates were driven to historic lows.

  • The forbearance plan all but eliminated foreclosures.

  • Home values reached appreciation levels never seen before.

It was a market that forever had been “greatly desired but difficult or impossible to find.” A ‘unicorn’ year.

Now, things are getting back to normal. The ‘unicorns’ have galloped off.

Comparing today’s market to those years makes no sense. Here are three examples:

Buyer Demand

If you look at the headlines, you’d think there aren’t any buyers out there. We still sell over 10,000 houses a day in the United States. Of course, buyer demand is down from the two ‘unicorn’ years. But, according to ShowingTime, if we compare it to normal years (2017-2019), we can see that buyer activity is still strong (see graph below):

 
 


Home Prices

We can’t compare today’s home price increases to the last couple of years. According to Freddie Mac, 2020 and 2021 each had historic appreciation numbers. Here’s a graph also showing the more normal years (2017-2019):

 
 

We can see that we’re returning to more normal home value increases. There were several months of minimal depreciation in the second half of 2022. However, according to Fannie Mae, the market has returned to more normal appreciation in the first quarter of this year.

Foreclosures

There have already been some startling headlines about the percentage increases in foreclosure filings. Of course, the percentages will be up. They are increases over historically low foreclosure rates. Here’s a graph with information from ATTOM, a property data provider:

 
 

There will be an increase over the numbers of the last three years now that the moratorium on foreclosures has ended. There are homeowners who lose their home to foreclosure every year, and it’s heartbreaking for those families. But, if we put the current numbers into perspective, we’ll realize that we’re actually going back to the normal filings from 2017-2019.

Bottom Line

There will be very unsettling headlines around the housing market this year. Most will come from inappropriate comparisons to the ‘unicorn’ years. A real estate professional is a great resource to help you keep everything in proper perspective.

Get more on Keeping Current Matters.

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The Housing Market Has a ‘Chicken and Egg’ Problem—but Buyers Have Finally Hatched the Perfect Workaround

 
 

Anyone who’s tried to buy or sell a home lately is no doubt painfully aware that today’s real estate market has slowed down considerably—but why?

A new Realtor.com® report sums it up as the “chicken and egg” problem. Allow us to explain.

It all starts with mortgage rates—which are about 1 percentage point higher than last year, hovering in the mid-6% range. This is a formidable deterrent not only for buyers, but also for sellers, who feel “locked in” to their current properties (along with the lower mortgage rates they got years earlier).

As a result, even homebuyers who are willing to pay high rates are finding few homes for sale, with May clocking 22.7% fewer new listings than last year.

“Many sellers report being concerned about finding another home, which may cause some of them to put plans to list on pause,” says Realtor.com® Chief Economist Danielle Hale. “But this reduces the total number of options for buyers in the market.”

Home prices continue upward—but not for long

In addition to slim pickings, homebuyers are still grappling with high prices. In May, the median listing price grew to $441,000, up from April’s $430,000.

And odds are, prices will head even higher in June.

“Historically, we typically see home prices top out in June,” says Hale. “I expect this year will be typical in that regard, with home prices hitting their highest level in June and retreating beginning in July.”

In fact, last June, median prices hit an all-time record high of $449,000. But odds are, this June’s home prices won’t surpass that, given annual price growth has tapered off considerably. May’s home prices, in fact, are only 1.1% higher than this same month last year.

“Based on current trends, it’s possible that [home prices] won’t hit the previous year’s peak for the first time in our data,” says Sabrina Speianu, economic data manager at Realtor.com.

While this news should come as a relief to buyers, today’s higher mortgage rates mean they’ll still pay more for a house now than they would have last year—about $280 extra per month, if they make a 20% down payment.

Yet if mortgage costs refuse to fall, home prices will eventually have to come down to compensate—and already are in some cases. Listings with price reductions rose from 10.2% in May of last year to 12.7% this year.

And so good things may come to buyers who wait.

“Sellers appear to be aiming for a relatively high starting point in the market this year and are willing to negotiate if needed,” says Hale.

The slowing pace of real estate

While few new home sellers are entering the market lately, the overall number of listings—which includes both new listings and oldies still on the market—is up by 23.4% compared with last May. Still, many of these listings have been picked and passed over by buyers already, with homes lingering on the market for a median of 43 days, which is 14 days longer than last year.

Certain markets have seen a significant slowdown, like Raleigh, NC, where listings linger a whole month longer than last year.

“Fewer homes are selling as buyer demand has dipped a bit,” says real estate agent Ryan Fitzgerald, of North Carolina’s Raleigh Realty. “This has created a larger number of homes for sale. And the increase in inventory is starting to put some downward pressure on pricing.”

Yet even in slow markets like Raleigh, multiple buyers will fight to scoop up a home if the price is right.

“We are still seeing multiple-offer situations and over-asking-price offers to win homes that are properly priced and in good locations,” says Fitzgerald. “This past week, we had a few clients win and lose in multiple-offer situations.”

A new solution to America’s housing shortage

Despite this seemingly intractable real estate gridlock, cracks are appearing that could move the housing market. And the break might come even without sellers listing their homes at all.

“Fortunately, builders are trying to pick up the slack, with new-home sales up and nearly back to pre-pandemic highs,” adds Hale. “So home shoppers frustrated by the lack of options might consider looking at new homes rather than existing homes.”

New construction has a distinct advantage in today’s market, in fact, because they typically work with preferred lenders that can offer lower mortgage interest rates. Many are also extremely willing to offer other discounts, which can place the final price tag below that of a pre-existing home.

New homes are going up at a breakneck pace, particularly in the South, says Hale. “Single-family housing starts in the South over the last 12 months are up over the pre-pandemic average.”

Fitzgerald agrees that new construction might be the “best bet” for some frustrated buyers.

Keep reading on Realtor.com

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5 Vital Things to Do at Home Before You Travel

 
 

In the days before a big trip, our to-do lists just seem to get longer: Pack an extra phone charger! Pick up that prescription refill! Don’t forget to check in for your flight! There’s so much to remember when preparing yourself for travel that it can be easy to forget to prepare your house, too.

Making sure your home is safe and sound while you’re gone is a crucial part of travel prep — but luckily, it’s not complicated. From better security outside to easier maintenance inside, these simple precautions will help you enjoy your travels with extra peace of mind.

1. Unplug Small Appliances

It’s a no-brainer way to reduce your energy use: Save a few dollars by unplugging your TV, computer, and other small appliances. (Whether you spend that savings on an in-flight cocktail is up to you.) To conserve even more energy, you can also adjust your thermostat and turn your water heater down or off.

2. Get an Extra Set of Eyes

A Ring doorbell or camera can keep you in the loop from anywhere. Replace an existing bell with the Ring Video Doorbell Wired or choose the battery-operated Ring Video Doorbell 2nd Generation: Both feature high-quality live video, motion detection and alerts, and two-way talk. Or try the Ring Floodlight Cam Wired Plus, which has a wide-angle view and bright LED bulbs, plus a built-in siren. And it can’t hurt to have an extra set of eyes inside, which is where the Ring Indoor Cam 2nd Generation comes in handy. (Tell your cat we said hi.)

3. Pause Your Mail

Nothing says “no one’s home” like an overflowing mailbox. If you’re going to be gone for longer than a couple of days, stop delivery of your mail and newspaper. Plus, this way your mail won’t get damaged by the weather while you’re gone.

4. Don’t Forget Your Plants!

We’ve all come home to find a drooping and disgruntled houseplant that’s gone too long without water. Give them a good drink before you leave. Depending on the length of your trip, have a friend stop by to water them while you’re gone, or use self-watering stakes to keep them hydrated.

5. Clear the Air

Three words you never want to say when you get home: “What’s that smell?” Prevent things from getting that far by cleaning out the fridge, emptying the litter box, and taking out the trash. Rinse the garbage disposal with vinegar to clear out any lingering food scraps. And — this one is easy to overlook — toss any fresh-cut flowers. You’ll thank us after your trip.

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What Is a Mortgage and How Does It Work?

 
 

Buying a home is a dream for many people, and a mortgage is the most common way to finance it.

If you're wondering what a mortgage is and how it works, you're not alone! Mortgages can be complex, and understanding the process can make all the difference when it comes to making one of the biggest investments in your life. This post will explore and shed some light on what a mortgage is, how it works, and what you need to know before you take out a home loan.

What Is a Mortgage?
A mortgage is a loan that's used to purchase a property. It's a legal agreement between the borrower and the lender, where the borrower promises to repay the loan (plus interest) over a set timeline. Your mortgage agreement will include details such as the loan amount, interest rate, repayment period, and the rules for making payments. There are companies, like USA Mortgage-Volunteer Mortgage Group which specialize in helping people calculate and choose mortgage agreements. When you take out a mortgage, you'll usually need to provide a down payment (typically 5%-20% of the purchase price) and pay closing costs (fees to cover the costs of the loan).

How Does a Mortgage Work?
Mortgages can have fixed or variable interest rates. A fixed-rate mortgage means that your interest rate stays the same for the entire loan term, while a variable-rate mortgage means that your interest rate can change (which could mean you pay more or less in interest). You'll also need to choose between a conventional mortgage (which is not government-backed) or an FHA loan (which is backed by the Federal Housing Administration). Your credit score will also play a role in determining your eligibility (and interest rate) for a mortgage. 

The Steps Involved in Getting a Mortgage
To get a mortgage, you'll need to follow a series of steps. First, you'll need to find a lender (such as a bank, credit union, or mortgage company) and get pre-approved (which means the lender will review your financial information and provide a conditional approval for a loan amount). Then, you'll need to submit a formal loan application, provide documentation such as proof of income and assets, and get a home appraisal, to determine the property's value. If your loan application is approved, you'll close on the loan, which means you'll sign the mortgage papers and pay closing costs.

What You Need to Know Before Getting a Mortgage
Before you get a mortgage, there are a few things to consider. Firstly, think about how much you can afford—your monthly mortgage payment shouldn't exceed 28% of your gross income. You'll also need to have a good credit score (at least 620), a stable job, and a solid financial history. It's also a good idea to save for a down payment—which can help you secure a better interest rate and lower your monthly payments—and to budget for closing costs (which can range from 2%-5% of the loan amount).

Getting a mortgage can be overwhelming, but understanding the process can help you make an informed decision. Knowing what a mortgage is, how it works, and what you need to qualify can make all the difference when it comes to financing your dream home. By following the steps outlined in this post and doing your research, you can become a savvy homebuyer and navigate the mortgage process with confidence.

Get more info on RISMedia.

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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