Why Have More People Recently Decided to Sell Their Homes?
Typically, as the summer ends, we see a slowdown in the number of homes being listed for sale. It’s a common seasonal trend where homeowners hold off on selling as fall approaches. However, this year saw an unusual shift. At the same time that mortgage rates decreased, more homeowners decided to list their properties, leading to a rise in available homes on the market. Recent data from Realtor.com indicates that, in September, the number of homes listed for sale jumped by 11.6% compared to the same period last year. As shown in the green section of the graph below (see graph below), the usual fall dip in housing inventory didn’t happen this year – instead, the number of homes entering the market rose. Ralph McLaughlin, Senior Economist at Realtor.com, attributes this trend to falling mortgage rates: “This sharp increase is largely due to the decline in mortgage rates in mid-August, enticing homeowners to sell.” As mortgage rates dropped at the end of summer, more homeowners felt confident in listing their homes, leading to a boost in inventory. What Does This Mean for Homebuyers? For those looking to buy a home, it means there are more fresh listings to consider – not just homes that have been sitting unsold. However, it’s important to note that mortgage rates have been fluctuating recently, which may make some homeowners hesitant to sell in the coming months. Mortgage rates continue to play a critical role in shaping homeowners’ decisions to list their properties. Why Buy Now Instead of Waiting? Whether you're a first-time homebuyer, upgrading, or downsizing, there are currently more homes available to explore. If you find a property that suits your needs, keep in mind that these new listings won't last forever. Working with a trusted agent will help you stay on top of the latest listings and ensure you’re ready to act quickly. It’s also worth noting that one month doesn’t establish a lasting trend. Future home listings will likely depend on how mortgage rates and other economic factors, like inflation and employment, unfold. The Federal Reserve’s actions will also have an impact on the market. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains: “The rise in inventory – and, more technically, the accompanying months’ supply – implies home buyers are in a much-improved position to find the right home and at more favorable prices.” Bottom Line As mortgage rates eased, more sellers returned to the market, offering buyers a wider range of choices. If you’re considering buying this fall, now could be a great time to act before these new listings are taken off the market. Let’s connect so you have expert guidance in navigating your home search during this unique time.
Why You Need a Real Estate Agent When Purchasing a New Construction Home
When buyers consider newly built homes, they sometimes hesitate, thinking these homes might not be as durable or of the same quality as older ones. This misconception can lead them to overlook some of the best opportunities available in today's market. In fact, according to Builder Online: "As the availability of resale homes remains limited and the price gap between new and existing homes decreases, new construction homes are becoming a more appealing choice for buyers. Incentives like interest rate buydowns are also helping to address affordability concerns." So, how do you ensure that investing in a newly built home is a smart move? Let’s explore why working with an expert real estate agent can make all the difference when you're buying new construction. Selecting the Right Builder Choosing the right builder is key to ensuring you get a high-quality home. Reputable builders follow strict construction codes, use cutting-edge techniques, and often provide warranties covering structural components for years. The Mortgage Reports highlights this critical step: "When purchasing new construction, one of the most important decisions is selecting the right builder. This choice can greatly influence the quality and overall satisfaction with your new home." While researching builders on your own is an option, it can be time-consuming and overwhelming. By partnering with a local real estate agent, you gain access to their extensive knowledge of builders and new developments in your area. Here’s how your agent can help: Evaluating Builder Reputation: Your agent will point you toward builders with solid reputations and great reviews from past clients. They'll also confirm that the builder is licensed, insured, and affiliated with professional organizations like the National Association of Home Builders (NAHB), indicating adherence to high industry standards. Touring Model Homes: Agents often know which builders have model homes you can visit. Touring with your agent gives you a trained eye to notice the finer details—everything from finishes to floor plans—ensuring you’re aware of the quality you're getting. Understanding Warranties and Incentives: Many reputable builders offer warranties covering structural issues and other major components of the home. Your agent will guide you through these offers, ensuring you understand what’s covered and what incentives may be available. Coordinating Inspections: Even with new homes, inspections are crucial. Your agent will schedule inspections with certified professionals, ensuring that the home meets all safety and quality standards before you close. Why an Agent Is Vital When Purchasing New Construction Data shows that homebuyers generally rate their real estate agents more favorably than their builders after a purchase. That’s because agents offer expertise and advocacy throughout the process, while the builder’s on-site agent works for the builder. As Realtor.com notes: "If you’re considering buying new construction, it’s essential to have your own real estate agent from the start. Even if the builder’s agent seems helpful, you need someone representing your interests." Bottom Line If you’re thinking about purchasing a newly built home, don’t let common myths dissuade you. A knowledgeable real estate agent can help you find a home that meets your needs and provide peace of mind throughout the process. Let’s work together to find a home you'll love for years to come.
Time to Upgrade to Your Dream Home: Here’s Why It’s a Smart Move
Have you been thinking about selling your current home and upgrading to a more spacious or luxurious one? If so, you’re not alone. According to a recent survey from Inman, one of the primary motivations for today’s homebuyers is the desire for more space and a better home environment. (see graph below): However, like many others, you might have been hesitant to move forward due to challenges in the real estate market. That’s completely understandable. When upgrading to a home that might come with higher monthly costs, affordability becomes a major factor. The good news? Right now could be the ideal time to make that dream upgrade. Here’s why: You Have Significant Equity to Work With One of the best advantages in today’s market is the amount of equity you’ve likely accumulated in your home. Even with recent shifts, home prices have been on a steady rise over the years, giving many homeowners more equity than ever. According to Selma Hepp, Chief Economist at CoreLogic: “Home price growth has continued, allowing homeowners to accumulate about $315,000 in average equity, which is roughly $129,000 more than before the pandemic.” What does this mean for you? If you’ve owned your home for several years, you likely have a considerable amount of equity that can be used toward a down payment on your next home. This could significantly reduce the amount you need to finance, making the cost of upgrading much more manageable than you might think. To get a clearer idea of your equity, consider having a professional equity assessment from a trusted real estate agent. Mortgage Rates Are Trending Down, Increasing Your Buying Power Another key reason to act now is the current trend in mortgage rates. As rates fall, your monthly mortgage payments can become more affordable, which also boosts your overall purchasing power. Nadia Evangelou, Senior Economist at the National Association of Realtors (NAR), explains: “When mortgage rates decrease, the interest portion of monthly payments drops, making it easier for borrowers to afford homes that may have been out of reach at higher rates.” This means you could potentially qualify for a more expensive home than you previously thought. Working with a trusted lender can help you find the best financing options for your specific needs and budget. Bottom Line If you’ve been dreaming of selling your current home and upgrading to something larger or nicer, now may be the perfect time. With strong equity in your existing property and favorable mortgage rates, you’re in a great position to make the move. Let’s connect today to ensure you make the most of the opportunities in the current market and have expert guidance through every step of your homebuying journey.
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