Thursday, August 5, 2021 / by Catherine J
As we move into the second half of the year, one thing is clear: the current real estate market is one for the record books. The exact mix of conditions we have today creates opportunities for both buyers and sellers. Here’s a look at four key components that are shaping this unprecedented market.
A Shortage of Homes for Sale
Earlier this year, the number of homes available for sale fell to an all-time low. In recent months, however, inventory levels are starting to trend up. The latest Monthly Housing Market Trends Report from realtor.com says:
“In June, newly listed homes grew by 5.5% on a year-over-year basis, and by 10.9% on a month-over-month basis. Typically, fewer newly listed homes appear on the market in the month of June compared to May. This year, growth in new listings is continuing later into the summer season, a welcome sign for a tight housing market.”
This is good news for buyers who crave m ...
Thursday, July 8, 2021 / by Catherine J
As we move into the latter half of the year, questions about what’s to come are top of mind for buyers and sellers. Near record-low mortgage rates coupled with rising home price appreciation kicked off a robust housing market in the first half of 2021, but what does the forecast tell us about what’s on the horizon?
Mortgage Rates Will Likely Increase, but Remain Low
Many experts are projecting a rise in interest rates. The latest Quarterly Forecast from Freddie Mac states:
“We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.”
However, even as mortgage rates rise, the anticipated increase is expected to be modest and still well below historical averages. Rates remaining low is good news for homebuyers who are looking to maximize their purchasing po ...
Wednesday, June 9, 2021 / by Catherine J
For generations, the process of buying and selling a home never really changed. A homeowner would try to estimate the market value of their house, then tack on a little extra to give themselves some negotiating room. That figure would become the listing price. Buyers would then try to determine how much less than the full price they could offer and still get the home. As a result, the listing price was generally the ceiling of the negotiation. The actual sales price would almost always be somewhat lower than what was listed. It was unthinkable to pay more than what the seller was asking.
Today is different.
The record-low supply of homes for sale coupled with very strong buyer demand is leading to a rise in bidding wars on many homes. Because of this, homes today often sell for more than the list price. In some cases, they sell for a lot more.
According to Lawrence Yun, Chief Economist at the National Association of R ...
Wednesday, May 26, 2021 / by Catherine J
When you’re thinking about buying a home, there are a few key steps to take before you even start to look at houses.
From saving for your down payment to getting pre-approved for a mortgage, you’ll want to make sure you keep your financial plan on track from the beginning.
Let’s connect today to make sure you have an introduction to a trusted lender and the best possible real estate guidance as you begin your homebuying process. ...
Monday, May 24, 2021 / by Catherine J
Evaluating Offers – Choosing the Best Offer
Sellers across the country are eager to take advantage of this sellers’ market. It seems like nothing could go wrong for a seller when houses are going under contract within days of listing and sellers have their pick amongst multiple offers. However, there are pitfalls to try and avoid. Not all offers are equal and it can be overwhelming to choose the best offer for your unique situation. Here are some guidelines we can use while evaluating offers:
The Highest Offer Isn’t Always The Best
Many people may feel compelled to simply choose the offer with the highest sales price. However, the highest offer does not mean the highest profit or the strongest offer. Look at what the net sales price would be by comparing any concessions the buyer is asking for or contractual issues that might ultimately result in a lower sales price.
Another factor in comparing offers is to loo ...