Why Now’s Not the Time To Take Your House Off the Market
Why Now’s Not the Time To Take Your House Off the Market Has your house been on the market longer than anticipated? If so, it’s understandable to feel frustrated. You might even be considering pulling the listing and waiting to see what 2025 has in store. However, what you may not realize is that holding off could actually end up costing you. Here’s why staying the course might be the smarter choice. Other Sellers Are Pulling Back. Should You Hold Off Too? According to recent data from Altos Research, the number of withdrawals is on the rise, indicating that more sellers are choosing to remove their listings from the market right now. This trend is not unusual for this time of year. In the housing market, there are seasonal fluctuations. Inventory levels usually begin to decline as we approach the fall season, with some sellers postponing their plans until the new year. As Mike Simonsen, Founder of Altos Research, explains: “. . . we’re seeing a more normal seasonal pattern now with inventory beginning to decline. We’re also seeing more home sellers withdrawing their listings to try again next year. In fact, for every two sales, there is another listing withdrawn from the market.” But is that a smart move? While it might seem like a good idea to pull your listing too, here’s why that approach may not pay off this year. Today’s Buyers Are Serious and Ready To Act The primary reason to stick with your plan to sell now is that the buyers currently looking are serious about making a purchase. They have been waiting on the sidelines for a while for affordability to improve. Now that mortgage rates have decreased from their recent peak, they’re ready to take action. Mortgage applications are rising, which is a leading indicator that buyers are gearing up to re-enter the market. Given that they’ve postponed their plans for so long, they are even more motivated than typical buyers at this time of year. These aren’t casual shoppers; they are highly motivated buyers who want to move quickly—and that’s the type of buyer you want to engage with. As Freddie Mac states: “During the fall months, serious homebuyers are eager to settle in to a new home before the holiday season ramps up and the winter weather begins.” By keeping your home on the market, you increase the chances of attracting people who are truly ready to make a purchase. Bottom Line While some sellers are opting to take their homes off the market, this may not be the best decision. With motivated buyers ready to make a purchase, now is an excellent time to sell your house. Let’s connect to ensure we have a strategy in place to make it happen.
Now’s the Time To Upgrade to Your Dream Home
Now’s the Time To Upgrade to Your Dream Home If you’ve been considering selling your house to move up to a larger or nicer home, you’re not alone. A recent Inman survey indicates that the primary motivator for today’s homebuyers is the desire for more space or an upgraded home (see graph below): However, there’s a good chance that, like many others, you’ve been postponing that goal due to recent market challenges. This hesitation is understandable—when considering an upgrade that could raise your monthly housing costs, affordability plays a significant role in deciding when to make your move. The good news is that now is actually a great time to pursue that upgrade. Here’s why. You Have a Lot of Equity To Leverage One of the key advantages in today’s market is the amount of equity you’ve likely accumulated in your current home over the years. Despite recent changes in the housing market, national home prices have consistently increased, contributing to the equity that homeowners currently possess. Selma Hepp, Chief Economist at CoreLogic, articulates this point effectively: “Persistent home price growth has continued to fuel home equity gains for existing homeowners who now average about $315,000 in equity and almost $129,000 more than at the onset of the pandemic.” What does this mean for you? If you’ve been in your home for several years, you’re likely sitting on a substantial amount of equity. You can use that equity toward the down payment on your next home, helping to keep your borrowing amount within a comfortable range. This can make upgrading more attainable than you might realize. If you’re curious about how much equity you’ve built up over the years, ask your real estate agent for a professional equity assessment. Mortgage Rates Have Fallen, Boosting Your Purchasing Power Another significant reason why now is an excellent time to make your move is that mortgage rates are trending down. Lower rates can make your future monthly payments more manageable and enhance your purchasing power. As Nadia Evangelou, Senior Economist and Director of Real Estate Research at the National Association of Realtors (NAR), highlights: “When mortgage rates fall, the interest portion of monthly payments decreases, which lowers the total payment. This makes it easier for more borrowers to . . . qualify for mortgages that may have been unaffordable at higher rates.” This provides you with greater flexibility when searching for homes and may enable you to afford a property that was previously beyond your reach. A trusted lender can collaborate with you to develop the best plan for your budget. Bottom Line If you’re ready to sell your current home and find the larger, nicer property you’ve been dreaming of, don’t wait. Your equity, combined with lower mortgage rates, places you in a strong position to make that move today. To ensure you make the best decisions and maximize your current market advantage, let’s connect so you have an expert to guide you through every step of the homebuying process.
The Top 3 Reasons Affordability Is Improving
The Top 3 Reasons Affordability Is Improving Affordability is determined by three key factors: mortgage rates, home prices, and wages. Currently, it is improving rapidly as rates decrease, prices stabilize, and wages increase. If you’ve paused your search due to high costs, let’s discuss why now might be the ideal time to re-enter the market.
Home Values Rise Even as Median Prices Fall
Home Values Rise Even as Median Prices Fall Recent headlines have been abuzz about the median asking price of homes decreasing compared to last year, which has led to a lot of confusion. As a buyer or seller, it’s easy to conclude that this means prices are falling. However, here’s the catch: those figures don’t provide the complete picture. Nationally, home values are actually rising, even if the median price has dipped slightly. Let’s clarify what’s truly happening so you can understand the market without getting swept up in the fear generated by the headlines. Homes on the Market Right Now Are Smaller The primary reason for the dip in the median price is the size of the homes being sold. The median price represents the middle point of all the homes for sale at any given time, which is influenced by the mix of homes on the market. To illustrate how this works, here’s a simple explanation of a median (see visual below). Suppose you have three coins in your pocket and line them up by value from low to high. If you have one nickel and two dimes, the median (the middle value) is 10 cents. However, if you have two nickels and one dime, the median shifts to five cents. In both scenarios, a nickel remains worth five cents and a dime is still worth 10 cents. The value of each coin hasn’t changed, and the same principle applies to housing. Currently, there are more smaller, less expensive homes on the market, which is contributing to the overall decline in the median price. However, this does not indicate that home values are decreasing. As Danielle Hale, Chief Economist at Realtor.com, explains: “The share of inventory of smaller and more affordable homes has grown, which helps hold down the median price even as per-square-foot prices grow further.” And here’s the data to prove it. Price Per Square Foot Is Still Rising One of the most effective ways to assess home values is by examining the price per square foot, as it indicates how much you’re paying for the space within the home. The median asking price does not account for the size of various homes, so it may not always represent the true value. The latest national price per square foot data reveals that home values are still on the rise, even though the median asking price has decreased (see graph below). As Ralph McLaughlin, Senior Economist at Realtor.com, explains: “When a change in the mix of inventory toward smaller homes is accounted for, the typical home listed this year has increased in asking price compared with last year.” This means that although smaller homes are impacting the median price, the average home’s value continues to increase. According to the Federal Housing Finance Agency (FHFA): “Nationally, the U.S. housing market has experienced positive annual appreciation each quarter since the start of 2012.” Therefore, even though headlines may suggest that prices are plummeting, there’s no need for concern. A closer examination of more reliable data reveals that prices are still rising nationally. However, it's essential to keep in mind that home prices can differ by region. While national trends offer a broad perspective, local markets may be experiencing varying conditions. A trusted agent is your best resource for understanding what’s happening in your area. Bottom Line The decrease in median price does not equate to a decline in home values. The median asking price has dropped primarily because of the presence of more smaller, less expensive homes on the market. What’s crucial to focus on is the price per square foot, which serves as a better indicator of overall market value—and those prices continue to rise. If you have questions about home prices in our area, don’t hesitate to reach out.
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