If you’re thinking about buying or selling a home soon, you probably want to know what you can expect from the housing market this year. In 2022, the market underwent a major shift as economic uncertainty and higher mortgage rates reduced buyer demand, slowed the pace of home sales, and moderated home prices. But what about 2023?

An article from HousingWire offers this perspective:

“The red-hot housing market of the past 2 ½ years was characterized by sub-three percent mortgage rates, fast-paced bidding wars and record-low inventory. But more recently, market conditions have done an about-face. . . . now is the opportunity for everyone to become re-educated about what a ‘typical’ housing market looks like.”

This year, experts agree we may see the return of greater stability and predictability in the housing market if inflation continues to ease and mortgage rates stabilize. Here’s what they have to say.

The 2023 forecast from the National Association of Realtors (NAR) says:

“While 2022 may be remembered as a year of housing volatility, 2023 likely will become a year of long-lost normalcy returning to the market, . . . mortgage rates are expected to stabilize while home sales and prices moderate after recent highs, . . .”

Danielle Hale, Chief Economist at realtor.comadds:

“. . . buyers will not face the extreme competition that was commonplace over the past few years.”

Lawrence Yun, Chief Economist at NAR, explains home prices will vary by local area, but will net neutral nationwide as the market continues to adjust:

“After a big boom over the past two years, there will essentially be no change nationally . . . Half of the country may experience small price gains, while the other half may see slight price declines.”

Mark Fleming, Chief Economist at First American, says:

“The housing market, once adjusted to the new normal of higher mortgage rates, will benefit from continued strong demographic-driven demand relative to an overall, long-run shortage of supply.”

Bottom Line

If you’re looking to buy or sell a home this year, the best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. Let’s connect so you have a trusted advisor to answer your housing market questions

Article Source: www.keepingcurrentmatters.com

Share on facebook
Share on twitter
Share on linkedin

Buyers Strategy

Get Educated

I can help you find a strong buyer strategy that fits your goals. If you consider buying a property in the next 1-2 years, you need to download our free buyer guide! 

Get informed with our buyer guide to understanding the best buyer strategies to get started.

If buying or selling a home is part of your dreams for 2023, it’s essential for you to understand today’s housing market, define your goals, and work with industry experts to bring your homeownership vision for the new year into focus.

In the last year, high inflation had a big impact on the economy, the housing market, and likely on your wallet too. That’s why it’s critical to have a clear understanding of not just the market today, but also what you want out of it when you buy or sell a home. Danielle Hale, Chief Economist at realtor.comexplains:

“The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, so that you can stay in your home long enough that buying is a sound financial decision.”

Here are a few questions you can start thinking through as you fine tune your goals for 2023.

1. What’s Motivating You?

You’re dreaming about making a move for a reason – what is it? No matter what’s happening in the market, there are still many compelling reasons to buy a home today. Your needs may have changed in a way your current house can’t address, or you could be ready to step into homeownership for the first time and have a space that’s truly your own. Use what’s motivating you as a guidepost in partnership with an expert advisor to help make sure your move will give you a lasting sense of accomplishment.

2. What Does Your Next Home Look Like?

You know you want to move, but how would you describe your dream home? The available supply of homes for sale has grown, and that could mean more options to choose from when you buy. Just be sure to keep your budget in mind and work with a trusted real estate professional to balance your wants and needs. The better you understand what’s essential and where you can be flexible, the easier it can be to find the home that’s right for you.

3. How Ready Are You To Buy?

Getting clear on your budget and savings is essential before you get too far into the process. Working with a local agent and a lender early is the best way to make sure you’re in a good position to buy. This could include planning how much to save for a down payment, getting pre-approved for a home loan, and assessing your current home equity if your move involves selling your existing house.

A Professional Will Guide You Through Every Step of the Process

Buying or selling a home is a big process that takes expertise to navigate. If that feels a bit overwhelming, you aren’t alone. According to a recent Harris Poll survey, one in five respondents see a lack of information or knowledge about the homebuying process as a barrier from owning a home. Don’t let uncertainty hold you back from your goals this year. A trusted expert can bridge that gap and give you the best advice and information about today’s market.

Bottom Line

Work with me to plan how your dreams for 2023 can become a reality.

Article Source: www.keepingcurrentmatters.com

Share on facebook
Share on twitter
Share on linkedin

Buyers Strategy

Get Educated

I can help you find a strong buyer strategy that fits your goals. If you consider buying a property in the next 1-2 years, you need to download our free buyer guide! 

Get informed with our buyer guide to understanding the best buyer strategies to get started.

The housing market is rapidly changing from the peak frenzy it saw over the past two years. That means you probably have questions about what your best move is if you’re thinking of buying or selling this fall.

To help you make a confident decision, lean on the professionals for insights. Here are a few things experts are saying about the fall housing market.

Expert Quotes for Fall Homebuyers

A recent article from realtor.com:

This fall, a more moderate pace of home selling, more listings to choose from, and softening price growth will provide some breathing room for buyers searching for a home during what is typically the best time to buy a home.”

Michael Lane, VP and General Manager, ShowingTime:

Buyers will continue to see less competition for homes and have more time to tour homes they like and consider their options.”

Expert Quotes for Fall Sellers

Selma Hepp, Interim Lead of the Office of the Chief Economist, CoreLogic:

“. . . record equity continues to provide fuel for housing demand, particularly if households are relocating to more affordable areas.”

Danielle Hale, Chief Economist, realtor.com:

For homeowners deciding whether to make a move this year, remember that listing prices – while lower than a few months ago – remain higher than in prior years, so you’re still likely to find opportunities to cash-in on record-high levels of equity, particularly if you’ve owned your home for a longer period of time.”

Bottom Line

Mortgage rates, home prices, and the supply of homes for sale are top of mind for buyers and sellers today. And if you want the latest information for your area, let’s connect so you have a trusted advisor to answer your housing market questions.

Article Source: www.keepingcurrentmatters.com

Share on facebook
Share on twitter
Share on linkedin

Whether you’re a potential homebuyer, seller, or both, you probably want to know: will home prices fall this year? Let’s break down what’s happening with home prices, where experts say they’re headed, and why this matters for your homeownership goals.

Last Year’s Rapid Home Price Growth Wasn’t the Norm

In 2021, home prices appreciated quickly. One reason why is that record-low mortgage rates motivated more buyers to enter the market. As a result, there were more people looking to make a purchase than there were homes available for sale. That led to competitive bidding wars which drove prices up. CoreLogic helps explain how unusual last year’s appreciation was:

“Price appreciation averaged 15% for the full year of 2021, up from the 2020 full year average of 6%.”

In other words, the pace of appreciation in 2021 far surpassed the 6% the market saw in 2020. And even that appreciation was greater than the pre-pandemic norm which was typically around 3.8%. This goes to show, 2021 was an anomaly in the housing market spurred by more buyers than homes for sale.

Home Price Appreciation Moderates Today

This year, home price appreciation is slowing (or decelerating) from the feverish pace the market saw over the past two years. According to the latest forecasts, experts say on average, nationwide, prices will still appreciate by roughly 10% in 2022 (see graph below):

Why do all of these experts agree prices will continue to rise? It’s simple. Even though housing supply is growing today, it’s still low overall thanks to several factors, including a long period of underbuilding homes. And experts say that’s going to help keep upward pressure on home prices this year. Additionally, since mortgage rates are higher this year than they were last year, buyer demand has slowed.

As the market undergoes this change, it’s true price appreciation this year won’t match the feverish pace in 2021. But the rapid appreciation the market saw last year wasn’t sustainable anyway.

What Does That Mean for You?

Today, the market is beginning to move back toward pre-pandemic levels. But even the forecast for 10% home price growth in 2022 is well beyond the 3.8% that’s more typical for a normal market.

So, despite what you may have heard, experts say home prices won’t fall in most markets. They’ll just appreciate more moderately.

If you’re worried the house you’re trying to sell or the home you want to buy will decrease in value, you should know experts aren’t calling for depreciation in most markets, just deceleration. That means your home should still grow in value, just not as fast as it did last year.

Should You Buy a Home Now or Wait?

Buying a house—in any market—is a highly personal decision. Because homes represent the largest single purchase most people will make in their lifetime, it’s crucial to be in a solid financial position before diving in.

Use a mortgage calculator to find out how much your monthly housing costs will be based on your down payment and interest rate.

Trying to time the market or predict what might happen next year is not the best homebuying strategy. Instead, it’s better to buy based on your budget and needs. If you find a home you love in an area you love and it also fits your budget, then chances are it might be right for you. However, if you make too many sacrifices just to get a house, you may end up with buyer’s remorse and an expensive albatross you have to offload.

Bottom Line

If you’re thinking of making a move, you shouldn’t wait for prices to fall. Experts say nationally, prices will continue to appreciate this year, just at a more moderate pace. When you’re ready to begin the process of buying or selling, let’s connect so you have a local market expert on your side each step of the way.

Article source: www.keepingcurrentmatters.com, www.forbes.com

Share on facebook
Share on twitter
Share on linkedin
Share on facebook
Share on twitter
Share on linkedin

People have certain housing needs, and as they change over time, so too do their needs. Although some people are looking for a basic place to stay – with just the necessities – others who want to live in a luxury home. But what is a luxury home?

Some people might think of one thing, while others perceive it to be something entirely different. There are a lot of factors that go into deciding if a home is luxurious or not. Perhaps it’s the type of location (for example, city versus country), or how functional the home is with the best possible amenities offered.

According to the Institute for Luxury Home Marketing’s Luxury Market Report, the number of buyers acquiring luxury homes has increased significantly over the last two years. It says:

“. . . North America recorded the fastest growth of demand during the first year of the pandemic. Also, demand has . . . consistently increased, and even in April 2022, we saw a higher volume of sales compared to 2021.”

If you own a luxury home, now would be a good time to list it because demand is so strong. But first, let’s look at the source of the demand.

What’s Driving the Heightened Buyer Demand for High-End Homes?

According to the same report, more people have attained a particular net-worth level, which is leading to rising demand in luxury housing:

“In 2020, we saw a 2.2% growth in the number of individuals with wealth of over $5 million in net value, but in 2021 that number grew by an outstanding 19.8%. This total increase has resulted in the introduction of over 660,000 new individuals into the high net-worth bracket, which, combined with the existing affluent looking to both diversify and add new properties to their portfolio, provides a true insight into why the demand for luxury properties skyrocketed during 2021 and into 2022.”

So, if you’re trying to diversify your real estate portfolio or sell your present property, now would be a best time to list and benefit on today’s strong demand for luxury properties.

Bottom Line

Buying luxury real estate, whether as an investment or a primary residence, can be an extremely lucrative, high-return opportunity. For one thing, luxury real estate makes a good low-risk investment; it actually tends to (on average) outperform non-luxury homes! And the value of luxury homes tends to appreciate faster than the value of non-luxury homes.

Whether you are interested in a luxury home or looking to sell your own, contact me today. I would be happy to offer my expert advice on the market conditions. Whether you’re buying or selling, you’ll find my experience invaluable.


Source: Keeping Current Matters

What You Need To Know About Selling in a Sellers’ Market

The current sellers’ market is a great opportunity for homeowners who are thinking about selling. But what does being in a sellers’ market really mean?

If you haven’t been following real estate news, you’ve likely heard about how strong market conditions are for people who want to sell their homes. It’s no surprise that there’s so much talk about how strong the markets have been lately. After all, if you’re looking to sell your house, it’s nice to know that there are plenty of buyers out there who are ready and willing!

What Is a Sellers’ Market?

In a seller’s market, there are more buyers than there are homes for sale. The result? Prices go up as buyers compete for the few options that are available, and sellers are less likely to make concessions because they may receive multiple offers. Also, homes tend to stay on the market for a shorter amount of time, making it easier for sellers to close and move on.

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):

What Does This Mean for You When You Sell?

The housing market is so tight right now that there are only a few houses for sale at any given time. This means that buyers have to compete with each other for the houses they want and will likely submit very attractive offers in order to get them.

Plus, mortgage rates and home prices are climbing so serious buyers are motivated to make their purchase soon before those two things rise further. 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 signs are pointing to a strong real estate market that’s poised to grow even stronger. If you’re listing your home, now is the time to do so. With the inventory of homes on the market at an all-time low, the opportunities are simply too good to pass up. Let’s get started on getting your house ready for buyers.

Source: Keeping Current Matters. “What You Need To Know About Selling in a Sellers’ Market” April 28, 2022. Accessed June 06, 2022. https://www.keepingcurrentmatters.com /2022/04/28 /what-you-need-to-know-about-selling-in-a-sellers-market/

Image by [Tinnakorn Jorruang, www.istockphoto.com].


Seller Profit Margins Drop Significantly, According to a Report

ATTOM: Despite remaining at record highs, profit margins on median-priced single-family home sales declined to 47.2% in the first quarter of 2022, from 51.6% in the fourth quarter of 2021.


IRVINE, Calif. — Home prices continue to rise, but seller profits may be decreasing from recent highs. However, most sellers continue to make big profits, and earnings are currently at historical highs.


In the first quarter, profit margins on median-priced single-family home sales in the United States plummeted to 47.2%. According to a recent analysis provided by ATTOM Data Solutions, it was the first quarterly fall since late 2019 and the largest in a decade. The profit margin in the first quarter was down from 51.6% in the fourth quarter of 2021.


However, profit margins — the percentage difference between median purchase and resale prices – frequently fall during the slower winter home buying seasons. However, the most recent drop of more than four percentage points was bigger than usual.


“Home prices simply cannot continue to rise at the rate they have in recent years,” says Rick Sharga, executive vice president of market intelligence at ATTOM. “The combination of increased prices, rising mortgage rates, and the greatest rates of inflation in 40 years may be pricing some prospective buyers out of the market, implying that sales figures may begin to fall.” Finally, as price decreases, price growth should slow down.”


Santa Barbara, California (margin down from 72.9% in the fourth quarter of 2021 to 45.8% in the first quarter of 2022); Boise, Idaho (down from 110.4% to 88.8%); Brownsville, Texas (down from 54.3% to 38.1%); St. Louis (down from 37.6% to 23.9%); and Des Moines, Iowa (down from 37.6% to 23.9%) (down from 48.1% to 35.2%).


Other early signals of normalization have emerged in the real estate market. Contract signings fell in March, the fifth consecutive month that pending home sales fell, according to the National Association of Realtors®.


Source: “Home Sales, Seller Profits Dip Across U.S. in First Quarter of 2022 as Price Increases Slow,” ATTOM Data Solutions (April 27, 2022)

© Copyright 2022 INFORMATION, INC. Bethesda, MD (301) 215-4688

Download our
Buyers Guide

Everything you ever wanted to know about
becoming a homeowner.


We will be contacting you shortly with information about your home.