Real Estate Information Archive

Good Monday Morning!

The news for homebuyers has not improved over the last several weeks. A slow national market that has been created by a very low inventory of homes for sale and the highest mortgage interest rates in decades continues. What could take place locally to help this situation? First of all, an increase in the inventory of homes for sale would have a huge impact. In the Eugene and Springfield area, new home construction is at a near stand still. The low availability of building lots and the high cost of construction has made new home ownership tough and has essentially wiped out the new home market in our area. Years of suppression of new land being available for home construction has lead to higher home prices in our area and now has contributed to the low inventory of homes for sale. The Eugene and Springfield area needs more affordable lots for homes, which would drive down housing costs. Hopefully, we will see urban growth boundaries extended in the near furture that will provide for more new homes and help bring back home affordabilty in our area.

Here is an article from "Realtor.com" that talks about the current national housing market.

The numbers: U.S. pending home sales rebounded in September but remain near a record low as high mortgage rates and low inventory continue to hurt the real-estate sector.

Pending home sales rose 1.1% in September from the previous month, according to the monthly index released Thursday by the National Association of Realtors.

But pending home sales were still depressed on an annual basis due to the dearth of home listings. The September figure was the second-lowest reading since the NAR began tracking the data in 2001.

Transactions were down 11% from last year.

Nonetheless, the sales pace exceeded expectations on Wall Street. Economists were expecting pending home sales to fall 1.5% in September.

Pending home sales reflect transactions where the contract has been signed for the sale of an existing home, but the sale has not yet closed. Economists view it as an indicator of the direction of existing-home sales in subsequent months.

The NAR also released an updated forecast for existing-home sales on Thursday. The group expects sales to fall 17.5% in 2023 to a pace of 4.15 million, which will be the slowest pace since 2008. Yet due to low inventory, the median home price will increase by 0.1% in 2023, the NAR said, to $386,700.

The group expects home sales to rebound in 2024, rising 13.5% to a rate of 4.71 million. Home prices are expected to rise 0.7% next year, to $389,500.

The NAR also expects the 30-year mortgage rate to fall to 6.9% in 2023 and 6.3% in 2024. The 30-year was averaging 7.98% as of Wednesday, according to Mortgage News Daily.

Big picture: The U.S. housing market is dealing with problems on both the demand and supply sides, but the NAR seems confident that the sector will recover in the new year.

At present, not only are rates high enough to discourage home buyers, the lack of inventory is also making homes more expensive, which further spooks buyers. The NAR expects the pace of existing-home sales to fall to the slowest in 15 years, when the U.S. was in the midst of a recession caused by the subprime-lending crisis.

What the Realtors said: “Because of home builders’ ability to create more inventory, new-home sales could be higher this year despite increasing mortgage rates,” NAR Chief Economist Lawrence Yun said. “This underscores the importance of increased inventory in helping to get the overall housing market moving.”

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

4927 Morely Loop, Eugene, OR 

Price: $335,000    Beds: 3    Baths: 2.0    SqFt: 1518

This updated manufactured home is on its own land and located on a quiet street. Open floor plan with vaulted ceilings, skylight in the kitchen, laminate flooring and vinyl windows. Sliding French doors lead to a large family room/bonus room for ext...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Several years ago, I could never have imagined a Real Estate market like the one we are seeing today. Typically, if mortgage interest rates rise, home prices decline to compensate. Just the opposite takes place when rates go down. To me, this is a logical housing market and kind of the way that it has always been. Now comes a situation where mortgage rates have increased from as low as 2.5% to now over 8% and we have not witnessed any real reduction in home prices. Wow! It seems that a decade of low mortgage interest rates, where homeowners either purchased or refinanced their home at record low mortgage interest rates has kept them from wanting to sell into a market with todays higher interest rates. The result of this has been low inventories. Home inventories have remained lower than demand and this has created a weird situation where home values have been very stubborn in regards to declining. Can this situation exist much longer? My prediction is a big "NO"! I think that we may see home values remain higher than what we might expect with high interest rates, but consumer demand is waining and this will begin to pressure home values in most markets. Time will tell this story. The following is an article from "Realtor.com" that talks about this very situation.

Mortgage rates have risen yet again, reaching 7.63% on average for a 30-year fixed-rate loan for the week ending Oct. 19, according to Freddie Mac.

That’s up from last week’s 7.57%, which was already hovering at a 23-year high.

What’s more, recent economic indicators have “raised concerns regarding the inflation outlook and the likelihood of further Federal Reserve interest rate hikes,” says Realtor.com® economist Jiayi Xu. This, in turn, could “increase the possibility of mortgage rates hitting 8% in the coming months.”

All of this could further shake the already shaky housing market.

How rising mortgage rates may affect home prices

Homebuyers haunted by high interest rates might wonder: Won’t home prices fall to balance things out? Not yet, at least.

“High home prices continue to compound the sting of high mortgage rates,” notes Realtor.com Chief Economist Danielle Hale in her weekly analysis.

In September, listing prices clocked in at a national median of $430,000. And for the week ending Oct. 14, that number held steady, no higher or lower than this same week last year.

This holding pattern has been the norm lately.

“We have seen the nation’s median listing price grow or remain flat on an annual basis for the past 13 weeks,” says Hale. “Taking an even bigger step back, the median listing price has registered within 1% of the prior year’s price since May.”

The good news is that prices are not expected to head much higher for the remainder of the fall season. In fact, Oct. 14 was at least the first time in seven weeks that prices have not risen annually, suggesting that high mortgage rates may be finally dampening demand.

“Home prices seem to be falling in line,” adds Hale.

Why home sellers remain hesitant to list

In addition to facing higher prices and mortgage rates, home shoppers simply don’t have many houses to buy.

For the week ending Oct. 14, new listings were down by 4.4% compared with a year earlier. Plus, the total number of homes for sale—which includes new listings and homes already on the market—is down by 2.7% and has been dwindling for 17 weeks straight.

This rampant reticence reflects the worry potential sellers have about trading in their current lower-rate mortgages for today’s elevated rates. Basically, financing fears are freezing them in place.

“With the number of homes for sale already limited, a decrease in new listings is likely to weigh on existing-home sales in the months ahead,” warns Hale.

While Hale says the seasonal buildup that makes this the best time to buy relative to the rest of the year is happening, in general, housing remains undersupplied. In fact, the number of homes for sale in September 2023 came in at 45.1% below pre-pandemic levels.

Despite a harsh market, homes are selling faster

One might think that homebuyers’ affordability struggles suggest homes are languishing on the market. But instead of scaring off buyers, the pace of sales is picking up slightly.

For the week ending Oct. 14, homes spent one day less on the market than the same week last year. In other words, there are still eager homebuyers ready to pounce on decent properties.

“Despite affordability challenges, a general lack of interest among sellers has kept the market relatively competitive,” says Hale.

All of this suggests that, in spite of the current market’s triple whammy of rising interest rates, high home prices, and low inventory, buyers aren’t spooked.

“Buyers still seem willing to make offers on many of the homes that come to market,” says Hale.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

2127 Silver Lea Ct, Eugene, OR 

Price: $599,900    Beds: 3    Baths: 2.5    SqFt: 2018

This single level ranch style home is located in a wonderful cul-de-sac and a short distance to the brand-new North Eugene High School. The covered front porch welcomes you to this turnkey home that has been tastefully upgraded throughout. New LED l...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Would be homebuyers today are in a state of panic over the increased cost of a home mortgage. In many cases we are finding avenues for people wanting to purchase a home that work well of them. The home buying scenario is different for every buyer and it is important right now to obtain good advice from knowledgeable local lenders. If you are considering a home purchase, but think that it is just out of your reach right now. Contact me and let me connect you with a trusted mortgage adviser. You might be shocked to find out that a home purchase is not out of the question at this time. The following is a very good article about home mortgages from "Realtor.com".

While buying a home has always been a challenging milestone, today’s high interest rates have made this dream even harder to achieve.

Over the past two years, interest rates on home loans have nearly doubled from the 3% range to around 7% today. This tacks many hundreds extra onto the monthly expense of housing, stretching some homebuyers’ budgets to the breaking point. And while there are ways to lower those costs, navigating the home loan process is extremely complicated—particularly for first-time homebuyers.

“It’s very important for first-timers to do research and understand all their options before they start looking for a home,” says Cara Ameer, a real estate agent with Coldwell Banker who is licensed in California and Florida. “Doing your due diligence can help you avoid some of the most common rookie mistakes, so you come out not only with the home of your dreams, but also a mortgage you can afford.”

Here are some common blunders homebuyers make when attempting to secure a mortgage.

1. Focusing too much on the interest rate

Probably the most common mistake homebuyers make is simply assuming that the lower the interest rate, the better the deal. But what they might not realize is that to get an ultralow rate, there are often hidden fees—and those fees could mean they ultimately end up paying more.

“Many lenders, especially in more recent years, have started to charge hidden points in an effort to advertise a much lower mortgage rate to potential applicants,” warns Jason Gelios, author of “Think Like a Realtor” and a real estate agent with Community Choice Realty in South East Michigan.

“It’s great to have the most attractive rate, but if the lender has you paying junk fees to obtain that rate, it might not make sense,” he adds.

Mortgage points are a fee that lenders can charge to applicants to lower their interest rate through the life of the loan. This process is also known as “buying down the rate,” and the fee is paid to the lender as its own fee.

In other words, “buying down the rate” or “buying points” are just a fancy way of saying you’re paying more fees upfront to get a lower interest rate.

As a result, it’s important for mortgage seekers to ask for an estimate of all fees included in their mortgage offer, and not just the interest rate.

2. Assuming you need a 20% down payment

“There’s a common but detrimental misconception that’s causing some potential first-time owners to delay starting the homebuying process, and that is the belief that it still takes 20% down to buy,” says Cindy Allen, veteran real estate agent and founder of DFWMoves in Southlake, TX.

In reality, according to a new study from Self Financial, the average down payment needed in the U.S. for first-time buyers is $12,274 (around 6%), in addition to $1,983 in closing costs.

“Fannie Mae has had a 3% down, first-time homebuyer mortgage for years now, which competes with FHA’s 3.5% down,” says Yifan Zhang, CEO of the host-to-own homebuying program Loftium. “The only difference is that home prices have risen so much recently that these programs are probably more popular now.”

However, keep in mind that you will have to pay private mortgage insurance if you put less than 20% down, which increases your monthly payments.

3. Assuming you can get a loan instantly

Many borrowers assume that in today’s instant-gratification culture, they can get a mortgage in days or even minutes. Not so.

“Even the mortgage lenders with splashy apps and websites still may need a phone call, manual document collection, or other time-consuming steps,” says Zhang.

In fact, many home tours might be off-limits until you’ve been vetted by a lender.

“Buyers may not be able to even see a home without providing a copy of their pre-approval letter just to schedule an appointment,” says Ameer. “Many listing agents are requiring that, no matter the price range. This is no longer just for high-end properties.”

4. Thinking pre-qualification means you’re approved for the loan

While getting pre-qualified for a loan is a good first step, it does not mean you’re guaranteed the money. Pre-approval is better because it means lenders have reviewed your finances.

In the past, pre-approval was typically enough to pass muster. In today’s ultracompetitive market, however, you might want to get fully approved from the get-go before you make an offer.

“Full approval means the buyer has been underwritten prior to making an offer—they have submitted all of their required documents, the lender has reviewed it and been able to vet them to basically say they are solid and just need to get an accepted offer on a property for the loan to go through,” says Ameer.

Being fully approved also allows buyers to close the deal in a much shorter time—two to three weeks in most cases.

This can give buyers the edge, as Ameer points out, “given today’s tight market with low inventory. Listing agents are going to recommend their seller ask for shorter time periods for loan approval.”

5. Not considering first-time homebuyer programs

Newbies who feel overwhelmed by the financial barriers to homeownership might be pleasantly surprised to learn that there are first-time homebuyer programs to help them get over the hump.

“You can find programs that offer help with closing costs and down payments, lower interest rates, and even tax credits to free up some of your savings,” says Allen. “And if you’re a first responder or educator, active-duty military or veteran, there are often special programs available for you, too.”

For example, Allen says just this past January she was involved in a $352,000 transaction where the buyers were granted over $6,000 toward closing costs and escrow through a first-time buyer program. They were then able to use the $6,000 they saved as additional down payment funds.

6. Failing to check your credit score

You really need to check your credit score prior to talking to mortgage lenders because ultimately, this number—which represents how well you’ve paid off past debts—will affect the interest rate you’re offered.

“Not tackling easy options for improving your credit score before taking out a mortgage is a big mistake for first-time homebuyers,” says Zhang. “Today, there are tons of credit improvement tools you can use to quickly and easily tackle your credit. Even just paying off a credit card can bump you into a higher credit category and save you hundreds each month on your mortgage.”

At the very least, make sure you know what your score is by checking it with CreditKarma.com or one of the top three ratings bureaus: TransUnion, Experian, and Equifax.

7. Picking the wrong type of loan

Are you better off going with an FHA, VA, or USDA loan or some other type entirely? Don’t know what these acronyms mean? There are many types of mortgages available, each with its own pros and cons based on your own personal circumstances.

“Know your loan options because an inexperienced loan representative may not know all the available programs or may not present all the possibilities,” says attorney Bruce Ailion, a real estate agent with Re/Max Town & Country, Atlanta. “Learn about the types of loans before talking with a professional to know the right questions to ask.”

8. Underestimating fees beyond the down payment

The down payment is not the only cost you’ll have when buying a home and securing a mortgage.

“People talk about the down payment required but rarely talk about the ancillary costs required for purchasing a home like closing costs, title, appraisal, and first-year homeowners insurance upfront,” says Nicole Rueth, senior vice president and producing branch manager, The Rueth Team of Fairway Independent Mortgage Corp. “It’s a mistake not to factor these in, because they can add up to an additional $5,000 to $12,000 down.”

9. Not preparing for the possibility of a low appraisal

Before lenders front the money for a house, they will have an independent home appraiser estimate its value. Many first-time buyers don’t realize that with listing prices so high, it’s entirely possible that their appraisal will come in lower, which means the lender will loan only that much.

“Given the rapidly rising asking prices and multiple-offer scenarios going on, it is quite possible that a property may not appraise at the agreed upon contract sales price. But a bank is only going to base their loan amount off of the appraised price, not what a buyer and seller agreed to pay,” says Ameer. “Buyers may not be able to come up with the cash to cover the difference between the appraised value and the contract sales price, so only offer what you know you can cover out of pocket should that happen.”

10. Not shopping around for the right lender

Not all lenders are created equal and work the same way. That’s why you really should shop around and find someone you trust who will pick up the phone when you call.

“In today’s market, it is imperative that you work with someone reputable who is reachable by cellphone seven days a week, because various questions and scenarios will come up as you embark on your property search and you may need some guidance that is crucial to having the winning offer,” says Ameer. “These situations often happen outside of typical office hours.”

This is one reason real estate agents typically prefer to use local lenders because they are accessible and reliable.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

4927 Morely Loop, Eugene, OR 

Price: $335,000    Beds: 3    Baths: 2.0    SqFt: 1518

This updated manufactured home is on its own land and located on a quiet street. Open floor plan with vaulted ceilings, skylight in the kitchen, laminate flooring and vinyl windows. Sliding French doors lead to a large family room/bonus room for ext...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

There have been some recent changes in the national housing market that should be watched. First of all, mortgage interest rates have certainly increased over the past several weeks, with rates now in the high 7% to low 8% range. With rising mortgage interest rates, home affordability takes a hit. The other change is that buyer ability and interest in purchasing homes is on the decline. At the same time, home inventories remain low in most areas of the country and home prices for the most part have not declined. Typically, when mortgages rates increase and demain decreases, home prices go down in order to compensate. That has not been the case during our current market. My guess is that we are on the verge of seeing home prices decline. This actually has to happen in order for home affordability to return. The speed and depth of decline will depend upon the path mortgage interest rates take moving forward. The following is an article from "Realtor.com" that talks about this situation.

Is the housing market overvalued?

It’s an increasingly fraught question, and the answer might depend on who’s being asked.

Some real estate experts believe home prices are well above what they should be and expect them to begin coming down. Others think the high prices make sense given how many people are still in the market looking for properties, despite mortgage rates nearing 8%.

“If you look at how much income homebuyers are putting toward their housing payment, if the number is not the highest ever, it’s really darn close,” says Realtor.com® Chief Economist Danielle Hale.

No one wants to buy a home at the peak of the market—and then watch the home value trickle down.

Homes in 98 of the 100 largest housing markets are selling above their long-term prices, which indicates that they are overvalued, according to an August analysisfrom Florida Atlantic University and Florida International University researchers. Only two markets had homes selling at a discount.

Nine of the top 10 markets where homes were priced the highest above historical norms were in the South, with seven in Florida, according to the analysis.

“The Sun Belt states are the most overvalued,” says Ken H. Johnson, a real estate economist at Florida Atlantic University in Boca Raton.

However, not everyone believes home prices are out of whack.

One thing most observers agree on: It’s the housing shortage that has kept prices high. Since there aren’t enough properties to go around for all of those aging into prime homebuying years, buyers have been trying to outdo one another with higher and higher offers to win bidding wars.

It happens in artwork, in commodities, in precious metals—and certainly in housing: The rarer, and more desirable, something is, the more valuable it is often considered to be.

“Yes, we’re in an affordability crisis,” says Devyn Bachman, senior vice president of research at the real estate consulting firm John Burns Research and Consulting. But “we have so much demand in the market, I don’t know that you can argue housing is overvalued.”

Fears of buying at the top of the market

It’s nearly impossible to perfectly time investments in the stock market. That is also true in real estate. No one wants to risk buying shortly before a major price correction.

That’s why some buyers who can afford the steep price tags at today’s high mortgage rates might decide to wait.

“There’s always this looming fear that they’re buying at the wrong time or they’re buying at the top of the market,” says Ali Wolf, chief economist of the builder consultancy Zonda. “We thought the peak was last year; we thought the peak was the year before.”

The problem is that it’s often impossible to figure out if the market has peaked until well after the fact. Many thought the market had peaked earlier this year when prices began to dip on a year-over-year basis, but then they started creeping up again.

“If someone is buying now because they want to lock in their interest rate, live in a certain neighborhood, get in a certain school district, and they’re planning to live there at least five years, I wouldn’t be as concerned about trying to time the market,” says Wolf.

Home prices aren’t sitting by themselves on an island. Mortgage rates and incomes also play a large part in whether real estate is overvalued.

It’s simple math. If everyone in America made at least $1 million a year, September’s median home list price of $430,000 wouldn’t seem so extra. Similarly, if mortgage rates were below 3%, then today’s prices would also be a lot more palatable.

“Two years ago, home prices were [also] high, but interest rates were low and most markets were considered fairly valued,” says Wolf. “The reason that’s changed today is mortgage rates have more than doubled.”

If mortgage rates keep climbing, home prices could fall. There is a limit to how much buyers can afford to spend each month on housing.

“It’s definitely more risky [to buy] today because of the high interest rates,” says Wolf. “If someone is buying now because they think their home [will be] up in value one year from now, I wouldn’t guarantee it.”

But if rates come back down, that could lure more buyers back into the market and prices could rise more steeply again.

“If mortgage rates drop, then maybe your asset isn’t overvalued,” says Bachman.

Will home prices crash?

Even if home prices are overvalued, most real estate experts don’t expect another housing crash to correct them.

“It’s certainly possible that home prices could fall from recent highs. It’s also possible they could still go up,” says Hale. “One year ago, everyone was predicting that the sky would fall in real estate—and that hasn’t happened in most markets.”

Unlike during the Great Recession, there are more buyers today than there are homes for sale. That shortage is expected to put a floor under prices, keeping them more elevated than many buyers would prefer.

Lenders have also tightened underwriting so that only more qualified borrowers get loans. That’s likely to prevent another wave of foreclosures, flooding the market with cheap real estate.

“There is going to be some adjustment. It could be that prices fall, it could be that incomes grow to catch up, it could be that mortgage rates come back down,” says Hale. “Or each of these three things could contribute a little bit over time until we gradually get back to housing taking up a more normal share of income.”

She also notes that housing markets rarely bottom out quickly. During the Great Recession, it took about four years for prices to fall to their nadir.

Even if prices did correct, most homeowners have enough equity in their homes to not find themselves underwater on their mortgages, says Hale.

The exceptions are recent homeowners who haven’t had as much time to pay down their balances or benefit from the steep price increases of the past few years. There is also a greater risk for those who purchased their homes with low down payments; they could be in the uncomfortable position of owing more than their homes are worth if prices came down by double digits.

But over time, the housing market generally rebounds and prices begin rising again. Homeowners just have to hold on. Even if the housing market is overvalued, people who need a home will still buy.

“It’s very clear that housing is expensive right now,” says Hale. But “even if housing is overvalued, it will make sense for people to buy homes.”

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

2434 E Irwin Way, Eugene, OR 

Price: $365,000    Beds: 3    Baths: 1.5    SqFt: 1056

This single level ranch style home is located on a quiet street near Irwin Park and the Golden Garden Pond. RV parking and an attached 2-car garage with built-in storage. Vinyl windows, newer carpet & vinyl, large fenced yard with a patio...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

One of the leading culprits with our slow Real Estate market in the Eugene and Springfield area and around the country is the low inventory of homes on the market for sale. Right now, there are clearly more home buyers than there are home sellers. This is true, even with increasing mortgage interest rates. The primary reason for the low inventory, is that most homeowners have either purchased a home or refinanced their home during the previous long stretch of low mortgage interest rates. The result of this is a lack of interest that homeowners have to give up their low rates in trade for higher rates on a new home. This is a situation that may not change any time soon. The following article from "NAR", gives some ideas and perspective for home sellers who would like to sell their home during this current market.

Selling a house can be a stressful process, particularly in today’s rapidly changing market. Although sellers enjoyed a strong seller’s market throughout much of the COVID-19-fueled housing boom rich with bidding wars and record-high prices, rising interest rates have shifted these power dynamics to the point that many prospective sellers might feel downright paralyzed by home-selling “what ifs.”

Like: What if I sell now, but then home prices rise? Or: What if I sell now, but then can’t find a new house? Will I regret selling so soon, or regret not selling soon enough? 

What if, what if, what if?

In fact, sellers hesitating to put their homes on the market are part of the reason why the number of new homes entering the market has been down for well over a year.

If you’re one of the many homeowners who feel paralyzed by indecision, allow us to help you play out the various scenarios and move forward. Here are some of the top “to sell or not to sell” questions floating around today, plus a reality check weighted with expert forecasts rather than hearsay or fear.

‘What if I want to sell now, but feel locked in by my current low-interest-rate loan?’

A recent Opendoor survey found that out of all housing market issues, 77% of homebuyers and sellers are most concerned about high interest rates. As a result, many potential sellers are postponing their moves for fear of future affordability woes.

“According to the FHFA national mortgage database, 90%-plus of outstanding mortgages have interest rates less than 6%,” says Amit Arora, vice president of investments for Opendoor. “So there isn’t a huge motivation for many sellers to list.”

This tracks since 72% of sellers also plan to go out and buy a new house, and with current interest rates hovering around 7%, many sellers are afraid to give up their lower interest rate when they sell to then repurchase their next home.

Reality check: The truth is, high interest rates do not need to hold a seller back. For one, if sellers are sitting on any amount of home equity in their current home, selling could make them flush enough to make an all-cash offer (or near that) on a new house, circumventing mortgage rates.

Sellers can also snag a lower rate by buying down their rate with the lender, or shopping for new-construction homes where builders might offer rate buy-downs as well.

Another possible option: an assumable mortgage. True to its name, this is where you assume, or “take over,” the mortgage of the home you’re buying—as well as its low interest rate.

“You may be able to apply with the same mortgage company that the seller of the home you wish to buy uses and see if you can qualify to take over the existing mortgage,” says Jonathan Rundlett, regional owner of EXIT Mid-Atlantic.

‘What if I sell now, then home prices rise?’

Some sellers might hesitate to list their homes right now thinking that their property might appreciate even more in the near future—and then they’ll be sorry they sold it for less.

At the moment, prices might continue to go up some, but the escalation has seemingly slowed from pandemic times.

Realtor.com® predicts only a modest decline in prices of just 0.6% for 2023 as a whole.

So if you’re thinking of selling, you could wait; but you’re not really going to make that much more than if you sold now. That’s because most sellers are likely selling one house and using the funds from that sale to purchase another house. In this scenario, it is not as important to “time” the market to sell at the peak.

‘What if I wait to sell my property until interest rates drop?’

Some homeowners who are likely to sell in the near future are waiting on the sidelines for interest rates to drop because they believe that if a buyer is able to get a lower interest rate, they will be willing to pay more for the house. However, supply and demand play a big role in determining home values, and this might not play out the way sellers imagine.

“Since many people are waiting for this same interest rate decline, there may be a large amount of properties that hit the market at the same time,” says Rundlett. “This increase in supply typically results in a reduction of prices.”

At the moment, however, data shows that there is still limited inventory and great demand for housing, which is why prices have continued to increase despite the higher interest rates.

“There is currently a very limited supply of homes available,” says Rundlett. “So it is likely better to sell your house now, rather than waiting and then trying to sell your house when there are many more properties for sale.”

‘What if I sell now, but mortgage rates rise higher before I buy another home?’

This really comes down to the reason you are selling.

“As I tell clients every day, interest rates do not determine if you are going to sell or buy a new home. What drives your move is far more important than an interest rate,” says Mason Whitehead, a Dallas-based branch manager for Churchill Mortgage.

Whitehead says when people have to move, it is usually for any one of these reasons:

• They have a growing family and need more space.
• They want to move into a better school district.
• They are moving for their job.
• They are moving to be closer to family.
• The are empty nesters, and they don’t need as much space.

“All of these are reasons we move, and whether the rate is in the 6% or 7% range doesn’t really matter relative to your quality of life and family needs,” says Whitehead.

He concedes that affordability is a big issue for his clients, but says it is often trumped by lifestyle needs.

So focus on the reason you are moving and not the rate—if rates drop, you can always refinance. If rates go up, you’ll be glad you locked in when you did.

‘What if I put my home on the market and it sells right away, but I need more time to buy a new property?’

Homes spend an average of 46 days on the market. That’s about two weeks longer than last year, but still shorter than before the pandemic. Since homes are selling faster in general, you need to make sure you aren’t thrown for a loop if you list your home and immediately get offers.

If you think you’ll need even more time, there are ways to negotiate with a buyer.

“You could include a contingency clause that allows you to find a home before completing the sale,” says real estate expert Michael Gifford, CEO of Splitero.

You could also request a closing date that is longer than the usual 30 days to give you more time to find a new residence.

Another option is a rent-back agreement, which allows the seller to stay in the house as a tenant of the buyer for a period of time after the sale is complete.

“Most lenders will allow a buyer to offer up to 60 days for the seller to lease back the property after the sale is complete to give them additional time to find a property and move,” says Rundlett.

‘What if I sell now but can’t find a new home in the area where I want to live?’

This is certainly a risk these days. However, even in a low-inventory environment, there are always some homes available, and depending on where you’re moving, the market might be better supplied.

If you really want to live in the same area and just can’t find another home that fits your needs, you could decide to stay put and instead remodel.

“Consider accessing your home equity to update and renovate your current home to satisfy what you’re seeking in a new home,” says Gifford.

Another option to consider is looking at new construction. While in the past new construction was always thought to be more expensive, today new homes might cost less than resale homes thanks to factors like builder incentives.

In fact, recent statistics show that new-home sales are increasing while the sale of existing homes is dropping, shifting home sales more toward new construction for the first time since 2008.

‘What if my home needs a lot of repairs but I can’t afford to fix them before selling?’

To get the highest price for your house, it is ideal to put it on the market with most items updated and few, if any, repairs needed. Turnkey homes are what most people are looking for, so they create the greatest demand. However, some homeowners do not have the money to update or make repairs before selling.

Fortunately, it is still possible to sell your home as is. And some buyers are looking for properties where they can build some sweat equity.

“But as a seller, your expectations need to be realistic to know that you won’t get top dollar for your house if repairs or updates are needed,” says Rundlett.

If a significant issue arises during the home inspection—such as structural problems or major systems in disrepair—and you can’t afford to fix it but you still want to close the sale, the best option in that scenario is to obtain repair estimates and negotiate with the buyer to find a solution that works for you both.

“You can offer the buyer a credit or price reduction to account for the necessary repairs, allowing them to address the issues on their own after the purchase,” says Gifford.

The buyer will have the option of continuing with the sale or voiding the contract if they have an inspection contingency.

‘What if I list my home and it doesn’t sell for the price I want?’

According to a recent Opendoor survey, 36% of sellers expect an offer above their asking price, whereas 73% of buyers plan to offer a bid below the list price. Obviously, in order for there to be a sale, both sides are going to have to give a little.

Keep in mind that even if you have a sale price in mind, it might not be realistic.

“Research comparable sales in your area to determine if the offers match the current market,” says Gifford. “You may need to adjust your expectations if market conditions have changed.”

If you feel like the offers you’re getting are too low—or you’re not getting offers at all—you might consider improving your marketing strategy by getting professional photographs, virtual tours, or targeted advertising to reach a wider audience.

And even if you don’t get the exact price you want, the good news is that both prospective sellers (76%) and buyers (80%) indicate a willingness to make some concessions to ensure a mutually beneficial sale.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

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