6 Things Sellers Need to Know Today that Weren't True Last Year
The housing market has been a seller's market throughout the pandemic, but if you are paying attention, you can probably see the change?
The current trends are pointing towards an end to the real estate market conditions that created a bonanza for sellers. Many issues created a high-pressure market environment severely skewed in favor of sellers. From sky-high home prices, intense competition between buyers, and tactical play from sellers waiting for the right moment to put their homes for sale.
It's worth saying outright: things are changing, and there are things home sellers need to be aware of today that weren't true last year. Here's what they are:
1. Home prices growth is returning to pre-pandemic levels
This is not the same as saying home prices are declining; besides the false appreciation in the 2nd quarter, they're not.
Prices are settling and we shouldn’t see them falling in the foreseeable future. It's the rate at which they're increasing that's changing.
All the signs point to a return to pre-pandemic levels of growth.
So, instead of the near 20 percent year-on-year increases, expect something closer to three or six percent.
The number of actual home sales is also expected to be more than 10 percent down from 2021.
This means that the waiting game is over for sellers in practice.
You might have been thinking about selling your home but were waiting for home prices to reach their peak to maximize their returns on the sale. But the peak has already passed.
It is doubtful that we'll see any more of the skyrocketing levels of home price increases any time soon.
2. Popular relocation hotspots have the highest home prices
The way local home prices behave is always different from national averages.
An area that's extremely popular with homebuyers will have different housing market conditions from one that homebuyers are keen to leave.
In many cases of post-pandemic migration patterns, these local conditions have a marked effect on home values.
These "migration hotspots" tend to have the highest inflation rates. (By the way, that’s good for housing!)
3. More affordable areas are in demand
The overall trend among homebuyers right now is downsizing and saving on housing as much as possible. Moving patterns indicate a strong preference for more affordable areas.
People are moving from the biggest and most expensive cities to smaller urban and suburban areas. These smaller communities offer good amenities and schooling but don't cost as much as the traditional vast metropolitan areas.
Home sellers need to be aware of this.
4. Homebuyer competition is still incredibly high
As a home seller, you will see headlines like "homebuyer competition drops to the lowest levels in two years" and think you'll struggle to sell.
This is not the case.
Homebuyer competition pre-pandemic was already very high, with record numbers of millennial homebuyers entering the housing market in search of their first home. This is a generational trend, and it won't go away any time soon.
Indeed, you may not sell your home within days of it going on the market, as was so often the case during the pandemic. But you will still sell within weeks if you do things the right way.
5. You may not get your first buyer
One of the most prominent features of the pandemic-era housing market conditions was that many homebuyers were willing to waive contingencies to secure a home. There is evidence that this is no longer the case.
Some buyers may call off a deal after finding a cheaper home.
Others may be forced to backtrack after a mortgage application falls through.
While inconvenient, this is a common occurrence and something you must prepare for by giving yourself more time to sell this year than last year.
6. An experienced real estate agent is more important than ever
Housing market conditions are a little trickier for home sellers this year than last year.
It is even more critical this year than last year to get a real estate agent with solid experience and expertise in selling your home.
Once again … I am Keith Walker with the Walker Team of Intero … here to educate and navigate, not speculate and fabricate!
Contact me to maximize the return on your sale and minimize the potential for delays and your sale falling through.
We'll Help You Navigate a Shifting Market
Selling your home can be stressful, especially as there are shifts happening in the market around us. Through experience, we're prepared to help you navigate and succeed in this market.