Let’s Talk … Real Estate: Take advantage of more foot traffic

By Michael Ardolino

Real estate professionals are seeing more foot traffic at open houses, and here’s why.

Spring is in the air

The early part of the year can be slow for the housing market. As the weather warms up and the days are longer, more people search for their next home. Spring is a perfect time for potential buyers with children to look for a house before a new school year begins.

The trend means real estate agents are seeing more predictable seasonal patterns than in the last few years.

Inventory remains low  

One of the main reasons open houses have been busy is that the Suffolk County housing market is still experiencing a supply shortage. Low inventory is key in how the real estate market is favoring homeowners.

Buyers may not find what they are searching for when they attend open houses. Your home could be the exact one someone dreams of and would love to move into in the upcoming months — if the price is right.

As I have mentioned in past columns, to do well in today’s market, sellers need to ensure that their homes are priced correctly. An expert real estate professional studies national and local trends and is able to translate that information to help you make a decision based on trustworthy information. One that will have your house on the market at a price that is attractive in today’s market.

For homeowners who aren’t ready to sell just yet, now is the time to start prepping your home and sitting with an agent. Financial experts believe 2023 will be a positive turning point in the housing market, despite national news headlines threatening a crash.

Those experts include Nadia Evangelou, senior economist and director of research at the National Association of Realtors, who told the website Markets Insider, “We don’t expect any housing crash.” Backing that forecast is NAR’s pending home sales index sales showing slightly higher sales in the last two months.

Buyers are out there

While mortgage rates have been going up, savvy buyers know that they can renegotiate a better rate at a later time. Mortgage applications have increased by 7.4% as of March 3 from the week before, according to the Mortgage Bankers Association. 

Here’s another thing knowledgeable buyers know — the rates can be even higher. When looking at historical data on Freddie Mac’s website, people will find that every decade, starting with the 1970s, has experienced highs and lows regarding mortgage rates.

The increase has been due to the Federal Reserve’s taking an aggressive stance to curb inflation. While mortgage rates have deterred some potential buyers, it hasn’t hindered others.

“Higher mortgage rates will be a hurdle but ultimately will not keep  [buyers] from getting back into the market after sitting on the sidelines for months,” said Lisa Sturtevant, Chief Economist at Bright MLS.

Takeaway

In the long run, sellers and buyers can do well as long as they know to gather all the information they need. Whether it’s a buyer looking for the best mortgage rates and knowing they can renegotiate a better one in a few years, or a seller pricing their home at a competitive price, real estate professionals can provide valuable information to help make crucial decisions. 

So … let’s talk.

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