Before the start of 2022, many in the real estate industry believed that home prices would decelerate in growth this year. The latest real estate firm to change up its 2022 forecast was Fannie Mae. Last year, the agency predicted that the average home price would climb 7.9% year, and now Fannie Mae is reporting an 11.2% price jump. If home prices rise to that level, it would mark a deceleration from the current rate. Fannie Mae believes the relief from the market will come, but it just won’t happen until the end of 2022 going into 2023.
For most of the pandemic, supply has been an issue. Many believed housing inventory would increase. However, housing availability levels have only gotten worse. Fannie Mae is now stating the median home price in 2022 will jump from $355,000 to $384,000. Inflation has been hitting consumers hard as prices rise at the fastest rate in nearly 4 decades. Mortgage rates are spiking as inflation rises as well.
Though our current economic market does not look promising, there is still hope for a cool-down period in the housing market. Hopefully, with higher rates, the market will become less competitive. If that happens, home growth could finally become normal again, or as close to normal as possible, given our current climate. If buyers are being priced out, then there should be fewer bidding wars which should slow house price appreciation. This is believed to begin at the start of 2023. This cooldown will not be like it was when the market crashed in 2008. Instead, we should expect to see fewer bidding wars and high-stakes competition. Home prices will continue to surge, which is not great news for first-time buyers, but from a macro perspective, a strong housing market could be what the United States needs to evade a potential recession.
If you are in the market for a new home, chances are a well-meaning friend or family member has offered their opinions on why now is the worst time to purchase a home. This opinion doesn’t just come from family and friends and doesn’t always rely on market conditions. Regardless, the potential for frustration and exhaustion remains. But does this have to be the case? And perhaps more importantly, is this the case? Although the constant drumbeat of skyrocketing costs and low inventory is enough to put many homebuyers’ plans on hold, it doesn’t and shouldn’t, have to be the case. Purchasing a home should be an exciting, not an exhausting time. The struggles the economy has had, and are having, during the pandemic are all too real. What is the recent past had been a buyer’s market has shifted into a strong seller’s market. But does a competitive market necessarily equate to Buyer Fatigue? Should it? There are a great many variables that make home-buying a smart move, regardless of market conditions. Here are five key strategies (one being a must-have!) that can set homebuyers on the path to their dream home without frustration and without fatigue.
Be prepared. While it’s true that time isn’t necessarily on the homebuyer’s side during a seller’s market, collecting the required documents, before house hunting begins in earnest, will save valuable time and can put buyers in the perfect position to have their offer moved to the top of the list. Pay stubs, tax returns, bank statements, personal and business references, should be gathered in advance.
Be available. Rather than waiting for a more traditional, buyer-friendly time to see a house, such as Saturday afternoons, make yourself available during the day, or during evenings to tour a home.
Be knowledgeable. Real estate agents stay on top of interest rates and know what low, or high, rates can mean throughout the course of a home loan. Buyers should also keep themselves aware of interest rates and the housing market in general. Researching prices houses are selling for in their preferred area gives buyers a range of current prices.
Be flexible. Buyers willing to make concessions, where possible and reasonable, can turn a good offer into a winning bid. Flexibility on issues such as extending closing and move-in dates could go a long way in setting one offer above the rest. Be willing to negotiate and compromise.
And the one must have:
Be pre-approved, not pre-qualified.
With interest rates at near-record lows, these strategies can make purchasing a home now a very smart and fatigue-free move for the future.
2021 proved to be a great year for sellers and a tough one for those looking to buy. Sellers were able to price high and still receive above-asking offers, multiple offers, and all-cash offers to require no financing. With many people working from home and interest rates being low, you’d think that would make this a very desirable time to buy a home, especially if you’re a first-time homebuyer. Un-fortunately with the price hikes, limited inventory, and fierce bidding, this didn’t prove to be the case. The 2021 housing market saw a remarkable level of growth with home sales up a record 19.8%. According to Fannie Mae, median home prices are predicted to rise 7.9% more between the fourth quarter of 2021 and the fourth quarter of 2022. This will reflect a slowing of the current year’s growth, however, it still exceeds the norm for growth seen in years prior. With that esti-mation, it sounds like the housing market is expected to start returning to a “normalish” level of price appreciation within the upcoming year. In addition to the rise in prices, it is expected that mortgage rates will also climb to rates in the 3.1-3.4% range. The mortgage rates are not expected to pull down the prices of homes, howev-er, the shortage of homes available for sale will continue to drive a sustained strong apprecia-tion in home values. With all that being said, although it seems as though 2022 will remain a hot market, it will gradually begin to reflect a little friendlier environment for buyers.
Moving can be one of the most stressful events in your lifetime. Moving isn’t necessarily complicated, but it’s oftentimes something we dread doing in a rushed time period, and it’s typically A LOT of tedious work. You don’t have to be a brilliant organizer to pack and move stress-free; you just have to apply some basic rules.
If you implement a little planning, you will alleviate many of the everyday stresses that accompany a big move. The most important rule is not to procrastinate. So many people wait until the last minute, and suddenly, the project seems too massive to accomplish in the time there is to do it. If you know you’re moving, start de-cluttering, organizing, and boxing things you don’t use regularly. Start months in advance.
When you’re ready to start, have a large garbage bag for trash, a box for items to be donated, and your boxes for packing. Moving day is a perfect opportunity to get rid of some things you don’t use or things you forgot you had.
Be sure to label your boxes. It will make the unboxing much easier if you have the name of the room and a description of what items are inside. Put heavier items at the bottom of boxes with lighter items on top. Maximize space by filling the boxes as much as possible and taping them extra well to avoid any accidents. Clothing, towels, and sheets are great for helping to pack breakables and dishes.
When packing your closet, gather a bundle of hanging clothes and use a garbage bag to keep them together and protected from dirt (the hangers can poke right through the opening). Ziploc bags are another great tool for keeping small items together and organized. Tape the baggie to any accompanying objects, so it doesn’t get lost. Pack your essentials, i.e., comfy clothes to unpack in, personal care products, work items in a special box or bag, so that you won’t have to hunt for things you need immediately.
The more times you move, the more creative techniques you will come up with to pack wisely. Most importantly, just stay focused and keep moving forward!
Our Marketing Director Kourtney Pomante is here to showcase the new education room we have at our Gulfside Mortgage office. Need a space to collaborate with business partners or other realtors? Our new education room is equipped with everything you need to hold meetings or presentations with your team!
