March Market Update
Summery of the what is going on overall
Best times to buy and sell
Major headlines hindering/helping real estate.
Buyer and Seller Summaries. The good and bad.
Pierce and Thurston county housing data and summery.
Median sales prices 2002-2022
Though we are not heading for a housing crash (aside from a complete economic depression from inflation and war) the industry overall and summery is:
· We are still in a full scale sellers market locally and nationally. Bidding wars consist upwards of $75k+ over asking, waived inspections, HOA review, and other contingencies. $5k-$50k on low appraisals and many other variables to win. However we are see more homes hit the market and quickly gobbled up but also many more poor priced homes sitting long (10-50 days) due to lack of experience, lack of knowledge and wrong expectations set.
· The largest generation (Millennials) are at their peak for buying homes &
· Builders for years are not keeping up with demand for society overall and it could take many years to rebalance.
· Interest rates are going up
· Monthly Rents are skyrocketing even more so then monthly mortgages in most areas
· We are approaching the best time to sell a home and then buy on seasonal factors.
· Redfin, Zillow, Realtor.com are not to be relied upon for pricing models.
· Inflation, war, policies are going to impact the housing market substantially. A scary but potential scenario in one of the articles below:
Some housing experts predict that home prices are bound to go down, especially if a recession hits. They argue that the highest inflation in 40-plus years will cut into paychecks and savings.
“There’s a reasonable likelihood prices could come down, especially in some of the most overheated markets,”
Key News Points
Best Time to Sell A Home
The best time to sell your home is right around the corner According to Realtor.com –
I have always promoted Selling your home between Feb- end of May but the peak being April. And the industry now recognizes that in this Article from Realtor.com
I built this chart years ago to show best times to Buy & Sell (seasonally)
Mortgage Rates are Increasing
· Rise in Mortgage Rates. Click Here
· The Fed Is Poised To Raise Rates. Here’s What You Need To Know
We’re in a long-term housing shortage situation, says Realtor.com’s Hale (2:48 minute video) Click here for full article
In summery as I mentioned for the last 2 years, that we have a millennial generation at their peak for buying homes but builders are not building the 5.8 million needed to keep up.
Some experts predict home prices will fall. Others believe they will keep rising….
Primary residence rent index up most since 1987 in February
Western Washington Home prices appreciation 2021 (provided by Mathew Gardner)
I know a lot of this sounds daunting but remember interest rates are still all-time lows and annual appreciation is still high. Waiting has proven to hurt past buyers and will certainly continue in 2022. Note out of over 200 agents in our company we rank top 3 for buyer sales and getting buyers under contract. Connect with us so we can coach you through this.
- Be Persistent
- See Potential in homes you would not often look at. Remember no house ever is a home until you make it one.
- Compromise where you can.
- Save money to use for earnest money, money on low appraisal, etc. for stronger offers.
- Do not get discouraged.
- This time next year you will be in a better position with equity, appreciation and lower interest rates.
Though daunting at first site you still have lots to gain when buying a home.
For example: If you buy today you can gain potentially 13-19% appreciation year over year, which is $64,000 at 16% appreciation on a $400k home! Overall gain $64k in appreciation not to mention its yours to do as you will.
Pay $32,200 in rent for a year at $2600/month, then when you go to buy, pay higher interest rates, and pay more in home values (potentially $64,000 as stated above on a home) so loss of $32k, and loss of $64k and a higher monthly mortgage due to interest and home costs appreciation.
We have clients and took on others clients regretting not buying last year when Rates where under 2.75% and home values where $30-$100k less. This is likely to repeat itself.
Inflation, job losses from covid or future potential depression, and affordability already at its breaking point for buyers; there is a real chance for instability in housing prices being able to continue to climb at the rate it has. Never the less It is still a sellers market but pricing/marketing, preparing your home is still very important. There are terms in contracts that can and will prevent you from getting top dollar even if they offer it. Experience and skill also matter. Make sure you do your research such as reviews, proven data, how long in the business, etc. I often see homes over or under priced from inexperience, out of the area (Seattle, Port Angeles, etc realtors) or part time agents pricing homes incorrectly. Or taking a reduced commission to get the sale only to lose far more then commission saved. Additionally if you are relying on online estimates, be sure you review all top 3 to see the wide spread they price you at. Then contact us for a full detailed report analyzed by humans not computers for proper pricing. We see 10’s of thousands of dollars left and deals fall apart or stay stagnant even in a sellers market from inexperience and misguidance.
Anyone and nearly everyone in the last 3 years has received a real estate license be sure you hire someone that:
Is full time
Has process’s in place
Local experience and knowledge (Seattle is a much different market buyer type)
Have years in transactional experience and expertise in changing markets.
Price properly by understand the data, new and sold listings on how to approach pricing.
Conduct robust marketing to get you top dollar and best outcomes
Be able to navigate obstacles, contracts, buyers financing, appraisals, etc
Know and prove their numbers and have reliable client satisfaction/reviews.
Understand goals and prepare realistic timelines
Be real and tell you what you need to know not what you want to hear.
Communicate before and during the process.
Whatever your goals, questions, planning or real estate needs are