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Selling in Today’s Market
If you’re thinking about selling your home, you may have heard about the housing market slowing down in recent months. While it’s still a sellers’ market, the peak frenzy the market saw over the past two years has cooled some, according to the real estate information base “Keeping Current Matters”.
If you think you’ve missed your chance to sell your house & make a move, the good news is―you haven’t. Motivated buyers are still out there. But you do need to price your house correctly for today’s market.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says: “Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”
It’s true that buyer demand has slowed over the past few months. Higher mortgage rates made it more expensive for buyers to qualify for a mortgage & reduced their buying power. Buyers that could afford a $350,000 house in some cases saw their purchasing power drop to below the $300,000 limit. The result is fewer bidding wars and less competition among buyers.
But don’t forget that this is in comparison to the severely overheated market we saw over the past two years. According to the latest Confidence Index from National Association of REALTORs®:
“ … 39% of homes sold above list price, down from 51% a month ago and 50% a year ago.”
While this is a slower pace, serious buyers are still active in the market & they’re buying homes that are priced right. In fact, the Confidence Index also notes the average home is selling in just 14 days.
If you’re planning to sell, work with me to price it for today’s housing market. As buyer demand softens, it’s important to understand this isn’t the same market as last year. It’s not even the same market as just a few months ago. But it is still a Seller’s Market.
You’ll need to adjust your expectations accordingly to meet the market where it is today. Selma Hepp, Interim Lead, Deputy Chief Economist at CoreLogic, explains what’s happening and what it means when you sell:
“Signs of a broader slowdown in the housing market are evident … This is in line with our previous expectations and given the notable cooling of buyer demand due to higher mortgage rates … Nevertheless, buyers still remain interested, which is keeping the market competitive, particularly for attractive homes that are properly priced.”
If you’re considering selling, call me at 847.494.1102 & we’ll create a strategic plan.
Karen Daugerdas, Coldwell Banker Real Estate Broker
Six Factors that Affect the Sale of your Home
The six factors that influence the sale of your property are:
*Location
*Competition
*Available Financing
*Buyers Likes & Dislikes
*Marketing
*Price
Out of these six, we only have control of the last two: Marketing & Price. I can take care of the Marketing. But you, as the Seller, control the Price. By pricing COMPETITIVELY, you’ll be able to negotiate UP, rather than having to negotiate DOWN. Call me today & we’ll make a strategic plan to get your property sold! Karen Daugerdas, Coldwell Banker REALTOR®. 847.494.1102
Is there a wave of foreclosures coming?
Is there a wave of foreclosures coming to the real estate market?
When the pandemic hit in 2020, many experts thought the housing market would crash. They feared job loss and economic uncertainty would lead to a wave of foreclosures, similar to when the housing bubble burst over a decade ago. The forbearance program changed that, according to Keeping Current Matters, the real estate research group. It provided much-needed relief for homeowners so a foreclosure crisis wouldn’t happen again.
Forbearance enabled nearly five million homeowners to get back on their feet in a time when having the security and protection of a home was more important than ever. Those in need were able to work with their banks and lenders to stay in their homes rather than go into foreclosure. Since so many people can stay in their homes and work out alternative options, there won’t be a wave of foreclosures coming to the market. And while rising slightly, foreclosures today are still nowhere near the levels seen in the housing crisis.
In addition, lending standards have improved significantly since the housing bubble burst, and that’s one more thing keeping foreclosure filings low. Homeowners have options they just didn’t have in the housing crisis when so many people owed more on their mortgages than their homes were worth. Thanks to their equity and the current undersupply of homes on the market, homeowners can sell their houses, make a move, and not have to go through the foreclosure process that led to the housing market crash in 2008.
The forbearance program was a game changer for homeowners in need. It’s one of the big reasons why we won’t see a wave of foreclosures coming to the market.
