Let’s Talk …. Real Estate: Should you stay or should you go?

By Michael Ardolino

It’s a great time to sell/buy.

While there are more options, your home is still in high demand. Graph 1 in our advertisement on page B9 shows inventory still is not keeping up with demand, maintaining a seller’s market. The National Association of Realtors’ (NAR) data shows sellers are still receiving many offers.

Mortgage rates are still historically low, and rates have increased approximately 3% in the last nine months. Buyers are becoming less likely to get into bidding wars and are more cautious. The rush of over-bidding and waiving inspections or appraisals is decreasing.

Let’s go

Put your home on the market while inventory is low, and buyers compete for the best offer. Buyers are understanding the adjusting market and know they can still secure a low mortgage rate.

Since April we’ve seen an incline of month’s supply of homes for sale. In August, the month’s supply went from 2.9 to 2.0 months, dipping further back into a seller’s market. We’re still experiencing the effects of low inventory and high demand.

CoreLogic states “Annual home price growth slowed for the third consecutive month in July and remained historically elevated at 15.8%.” Home price appreciation is slowing— a deceleration not depreciation.

CoreLogic expects to see a more balanced housing market with year-over-year appreciation slowing to 3.8% by July 2023. The home price appreciation we’ve experienced are unsustainable and are expected to return to normal in the next year.

Take advantage of the timing and get a great price for your home now.

Your next move

A recent article from CNET explains: “Homeownership is still considered one of the most reliable ways to build wealth… You’re building equity in your home…”. Home values have appreciated so much over the last few years, you can now cash in on all the built-up equity. Once your home is sold, you’ll have access to funds to use for a sizable down payment or an all-cash purchase. Sellers are becoming more flexible and willing to negotiate, especially if your offer has a higher down payment or no mortgage contingency. You’ll know your budget and can secure the home and location you’re moving to, especially with more homes on the market. 

Takeaway 

Timing is everything. It’s a great time to sell/buy, and as always in real estate, consult with a professional and make the best decision for you and your family.

So … let’s talk.

Michael Ardolino is the Founder/Owner-Broker of Realty Connect USA.