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selling your home

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By Michael Ardolino

Michael Ardolino

The market is shifting; sellers and buyers will still see home price appreciation and gains in their equity.

How does the shift affect home prices?

Demand remains higher than supply, so home prices are appreciating, and sellers will still get a good amount of offers even if it takes a bit longer. In Suffolk County, houses appreciated nearly 10% and higher since last year and more than 50% got over the asking price. Sellers are still making a significant profit.

The steep incline of market values and buyer rush is now pacing itself and most experts predict the appreciation will continue. David Ramsey, a personal finance personality, says, “The root issue of what drives house prices almost always is supply and demand…” and we couldn’t agree more. When priced correctly, houses are still selling at record-high prices and low days on the market.

Certainty of equity

One certainty in a time of uncertainty, mixed news, and mixed predictions, is the value of equity in real estate. According to CoreLogic’s 2022 Q2 Home Equity Report, “the total average equity per borrower has now reached almost $300,000, the highest in the data series.” 

The year-over-year equity percentage for U.S. homeowners with a mortgage has increased 27.8%; this is a $60.2K average equity gain.

Selma Hepp, interim lead of the Office of the Chief Economist, CoreLogic, stated “For many households, home equity is the only source of wealth creation. As a result, recent record gains in equity and record declines in loan-to-value ratios will provide many owners with a financial buffer in case economic conditions worsen. In addition, record equity continues to provide fuel for housing demand, particularly if households are relocating to more affordable areas.”

Equity builds long-term wealth gain for homeowners, and should you want access to additional funds, you can always rely on the equity you’ve grown. In times of financial uncertainty, follow the certain.

The shining star

Sellers, as your home value has appreciated considerably, tap into the profit from your equity and take advantage of the current market conditions. Timing is everything and ask your local real estate professional to help you research the area you’re looking to move. Your real estate agent can also help you connect with a professional in that location with expertise in their market conditions.

Homebuyers are future sellers, and they can feel confident to invest in a home now and build their own equity knowing price appreciation is forecasted. When a homebuyer becomes a seller, they’ve already paid off some of their mortgage and can take advantage of the real estate market at the time and come out with a significant profit themselves.

Takeaway 

So, the shining star of the market is demand still predominates supply. Home price appreciation is still forecasted, and equity gains are at record-highs. A market shift can be easily navigable with the help of a real estate professional.  So … let’s talk.

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

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Photo courtesy of Michael Ardolino

By Michael Ardolino

Michael Ardolino

Strong seller’s market? Yes, historically it’s still a strong seller’s market. So, let’s get moving. 

Ready or not

Grab the opportunity now. While it still takes time to prepare your home to go on the market, homes are still selling quickly once the For Sale sign goes up. Once an offer is accepted, there are negotiations, inspections, and contracts to be signed.

The one tip that I believe is always worth repeating is price your house according to current real estate market conditions. This piece of advice can help you sell your home quicker and at a higher price. You want to find a price that doesn’t deter potential buyers which may lead to a price drop. 

Some buyers may see such a move as a red flag leaving them to wonder if there is something wrong with the house, when it could have been as simple as it was priced too high for the current market.

For those planning to upsize, downsize, retire, or simply start fresh, why wait? Now is the time to get your house ready to sell.

Seller’s choice

The supply of houses is still behind demand, which means homes continue to appreciate. The market is experiencing an extended period where supply cannot keep up with demand, leaving behind practically nothing to choose from, and it’s still rebounding. The appreciation is still rising. Those selling their house will still make a nice profit on a sale and did not miss the boat. The median price of Suffolk County homes in July 2022 was up nearly 10% since the same time last year. Within the last month or so, more than 65% of homes were sold over the asking price. 

What’s going on with buyers

Buyers are adjusting to the current market. Homebuyers understand that mortgage rates are still excellent and don’t want to miss a smart financial move, even though they are acting more cautiously. 

The recent intense market and rising and falling mortgage rates this year have kept things interesting. In the near future, experts are expecting a strong continued growth market. Get ahead of it by selling now.

Takeaway

There is no such thing as perfect; timing is everything. When your future includes a move, start discussions with a local real estate professional sooner rather than later. They will help you prepare your home and list it at the right price. So … let’s talk.

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

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Real Estate Graph

By Michael Ardolino

Michael Ardolino

According to Long Island housing statistics, the number of listings taken increased nearly 6% since April 2022. Total homes available is also approaching 10%.

As the number of homes on the market increases, it’s important for those thinking of selling to keep their eyes on the real estate market. Fortunately for sellers, things are still in their favor, and forecasters predict it will remain that way this summer and into the fall.

For buyers, this means more to choose from. If you are selling and haven’t purchased your new home yet, you’ll also benefit from inventory starting to inch up.

While other potential sellers may be contemplating the perfect time to put their home up for sale based on their personal plans, if you base your decision on when it’s right in the market, you’ll come out with a better return on your investment.

Heading toward possible stabilization?

A recent article in The Washington Post states, “while mortgage rates and home prices are not expected to drop, they are anticipated to somewhat stabilize.”

Some may wonder if the market stabilizes, how it will remain a seller’s market this summer. According to Shivani Peters, a mortgage advisor and expert, “We have no reason to believe that home prices will stop appreciating … When you own, it’s a gift.” After two record-breaking years, the slight climbs in mortgage rates and home prices aren’t bad news. Prices will still continue to appreciate through the stabilization.

A reminder

Interest rates continue to inch up to slow inflation — we’re seeing nearly 6% for some 30-year fixed rate mortgages — and savvy buyers want to stay ahead of rising interest rates. For example, a person who bought a home in 2019 valued at $370,000, who put 5% down with an interest rate of 2.87%, would have a mortgage payment of $1,457. Someone who bought a home valued the same in 2022 with interest rates at 5.25%, would now pay $1,940. If they wanted the same type of house that sold for $370,000 in 2019, they would now pay around $500,000 for that home, with 5% down and current interest rates, their mortgage payment is $2,623. Timing is everything!

Real estate and financial experts are keeping a careful eye on The Federal Reserve as the central bank announced a .75% percentage point rate hike on June 15. Jerome Powell, chair of The Federal Reserve, said the Feds may announce a similar rate hike again next month. As I discussed in a past article, just because the rates are going up doesn’t mean they are the highest they have been.

Takeaway

As mortgage rates rise, buyers are less likely to purchase a home at the same price they would have six months ago; mortgage rates are predicted to only continue increasing over the next six. While rates will still be historically low, the best time to sell or buy is now. So … let’s talk.

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

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