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Navigating the Current Real Estate Market Trends: What Sellers Need to Know

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The real estate market is experiencing a unique time in history. The market is shifting and evolving at a rapid pace, and both homebuyers and sellers need to be aware of the changes to make informed decisions. In this article, I will discuss the current real estate market trends, and the factors affecting the market, and provide insights on how to navigate the market as a seller.

The Current Real Estate Market Trends

The real estate market has been on a rollercoaster ride in the past year. The COVID-19 pandemic caused a significant shift in the market, with many people opting to move out of crowded cities and into more spacious suburban areas. This resulted in a surge in demand for homes, and a shortage of inventory in many areas. As a result, the market became a seller’s market, where sellers had the upper hand in negotiations.

However, the market is now experiencing a shift as the pandemic eases and the world adapts to the new normal. As the market is starting to cool down, with inventory increasing and demand decreasing. This means that the market is shifting towards a buyer’s market, where buyers have more bargaining power.

Factors Affecting the Real Estate Market

Several factors are affecting the current real estate market trends. One of the most significant factors is the economy. As the economy continues to recover from the pandemic, interest rates are expected to rise, which can affect the affordability of homes. Additionally, changes in government policies, such as tax reforms and regulations, can also impact the market.

Another significant factor is demographics. The millennial generation is now entering the homebuying market, and their preferences and priorities are different from previous generations. Millennials tend to prioritize affordability and location, which has resulted in a surge in demand for suburban homes.

The pandemic has changed the way people work and live, and many are now looking for homes that can accommodate remote work and homeschooling. This has resulted in a shift in demand towards larger homes with more space.

It’s important to note that the market is still highly competitive, especially in certain areas. For example, in hot markets like San Francisco and New York City, homes are still selling for well above the asking price. Sellers need to be aware of the market conditions in their specific area and adjust their selling strategy accordingly.

Selling Trends—How to Navigate the Seller’s Market

The seller’s market has been dominant for the past year, and many sellers have taken advantage of the high demand and low inventory to sell their homes quickly and at a high price. But with the market shifting towards a buyer’s market, sellers need to adjust their approach to remain competitive.

One of the most important things sellers can do is to price their homes correctly. In a seller’s market, sellers can typically price their home higher than market value and still receive multiple offers. On the contrary, in a buyer’s market, buyers have more bargaining power, and overpriced homes tend to sit on the market longer.

Sellers should work with an experienced agent or real estate solutions provider to sell their homes based on market conditions. Another important strategy is to focus on the presentation of the home. In a competitive market, homes that are well-staged and well-maintained tend to sell faster and for a higher price. Sellers should invest in professional staging and cleaning to make their homes more appealing to buyers.

Tips for Navigating the Current Real Estate Market as a Seller

Navigating the current real estate market as a seller can be challenging, but several tips can help sellers stay ahead of the game.

Sellers should be prepared to be flexible with their selling strategy. In a changing market, what worked six months ago may not work now. Sellers should be open to adjusting their pricing, marketing, and presentation strategies to remain competitive.

Sellers should be patient. With the market shifting towards a buyer’s market, it may take longer to sell your home than it would have a year ago. However, with the right strategy and solution, you can still sell your home for a fair price.

Conclusion and Key Takeaways

The current real estate market is experiencing a significant shift, and sellers need to be aware of the changes to make informed decisions. The market is shifting towards a buyer’s market, but there are still opportunities for sellers to sell their homes quickly and for a fair price.

If you’re a seller, it’s essential to work with a real estate solutions provider like Ritsel Homes, who will potentially buy your home for cash without the need to pay realtor commissions. We can also provide you with various solutions tailored to your unique circumstances.

Additionally, you should focus on pricing your home correctly, presenting your home in the best possible light, and being flexible with your selling strategy.

By following these tips and staying informed about the market trends, you can successfully navigate the current real estate market and sell your home for a fair price.

 

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Housing Market Today And What Can We Learn From Recessions Since 1980

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It doesn’t matter if you’re someone who closely follows the economy or not, chances are you’ve heard whispers of an upcoming recession. Economic conditions are determined by a broad range of factors, so rather than explaining them each in depth, let’s lean on the experts and what history tells us about the Housing Market to see what could lie ahead. As Greg McBride, Chief Financial Analyst at Bankrate, says:

“Two-in-three economists are forecasting a recession in 2023 . . .”

As talk about a potential recession grows, you may be wondering what a recession could mean for the housing market. Here’s a look at the historical data to show what happened in real estate during previous recessions to help prove why you shouldn’t be afraid of what a recession could mean for the housing market today.

A Recession Doesn’t Mean Falling Home Prices

To show that home prices don’t fall every time there’s a recession, it helps to turn to historical data. As the graph below illustrates, looking at recessions going all the way back to 1980, home prices appreciated in four of the last six of them. So historically, when the economy slows down, it doesn’t mean home values will always fall.

a recession does not mean falling prices MEM

Most people remember the housing crisis in 2008 (the larger of the two red bars in the graph above) and think another recession would be a repeat of what happened to housing then. But today’s housing market isn’t about to crash because the fundamentals of the market are different than they were in 2008. According to experts, home prices will vary by market and may go up or down depending on the local area. But the average of their 2023 forecasts shows prices will net neutral nationwide, not fall drastically like they did in 2008.

A Recession Means Falling Mortgage Rates

Research also helps paint the picture of how a recession could impact the cost of financing a home. As the graph below shows, historically, each time the economy slowed down, mortgage rates decreased.

What Past Recessions Tell Us About the Housing Market in 2023 | MyKCM

Fortune explains mortgage rates typically fall during an economic slowdown:

“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.”

In 2023, market experts say mortgage rates will likely stabilize below the peak we saw last year. That’s because mortgage rates tend to respond to inflation. And early signs show inflation is starting to cool. If inflation continues to ease, rates may fall a bit more, but the days of 3% are likely behind us.

The big takeaway is you don’t need to fear the word recession when it comes to housing. In fact, experts say a recession would be mild and housing would play a key role in a quick economic rebound. As the 2022 CEO Outlook from KPMG, says:

“Global CEOs see a ‘mild and short’ recession, yet optimistic about global economy over 3-year horizon . . .

More than 8 out of 10 anticipate a recession over the next 12 months, with more than half expecting it to be mild and short.”

Bottom Line 

While history doesn’t always repeat itself, we can learn from the past. According to historical data, in most recessions, home values have appreciated and mortgage rates have declined.

If you’re thinking about buying or selling a home this year, let’s connect so you have expert advice on what’s happening in the housing market and what that means for your homeownership goals.

 

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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. and Ritsel Homes, LLC does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. and Ritsel Homes, LLC will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

Sticker house and a question mark on the chalkboard.

Mortgage Rates and Home Prices in New Jersey

Market Update / By

Now that the end of 2022 is within sight, you may be wondering what’s going to happen in the housing market next year and what that may mean if you’re thinking about buying a home. Here’s a look at the latest expert insights on both mortgage rates and home prices so you can make your best move possible.

Mortgage Rates Will Continue To Respond to Inflation

There’s no doubt mortgage rates have skyrocketed this year as the market responded to high inflation. The increases we’ve seen were fast and dramatic, and the average 30-year fixed mortgage rate even surpassed 7% at the end of last month. In fact, it’s the first time they’ve risen this high in over 20 years (see graph below):

What’s Ahead for Mortgage Rates and Home Prices? | MyKCM

In their latest quarterly report, Freddie Mac explains just how fast the climb in rates has been:

“Just one year ago, rates were under 3%. This means that while mortgage rates are not as high as they were in the 80’s, they have more than doubled in the past year. Mortgage rates have never doubled in a year before.”

Because we’re in unprecedented territory, it’s hard to say with certainty where mortgage rates will go from here. Projecting the future of mortgage rates is far from an exact science, but experts do agree that, moving forward, mortgage rates will continue to respond to inflation. If inflation stays high, mortgage rates likely will too.

Home Price Changes Will Vary by Market

As buyer demand has eased this year in response to those higher mortgage rates, home prices have moderated in many markets too. In terms of the forecast for next year, expert projections are mixed. The general consensus is home price appreciation will vary by local market, with more significant changes happening in overheated areas. As Mark Fleming, Chief Economist at First American, says:

“House price appreciation has slowed in all 50 markets we track, but the deceleration is generally more dramatic in areas that experienced the strongest peak appreciation rates.”

Basically, some areas may still see slight price growth while others may see slight price declines. It all depends on other factors at play in that local market, like the balance between supply and demand. This may be why experts are divided on their latest national forecasts (see graph below):

What’s Ahead for Mortgage Rates and Home Prices? | MyKCM

Bottom Line

If you want to know what’s happening with home prices or mortgage rates, let’s connect so you have the latest on what experts are saying and what that means for our area.

 

Source: Keeping Current Matters

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

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