Why Your Home Has the Edge in Today’s Market
As the housing market remains tight, your home has a unique advantage right now. Even though the number of listings has increased slightly from last year, the demand from buyers still outpaces the available inventory. If you’re thinking about selling, you’re in a prime position to make your home shine. Why Are There So Few Homes Available? Underproduction of Homes: Over the past decade, housing construction hasn’t kept up with the number of new households. According to Zillow: “In 2022, 1.4 million homes were built, the strongest construction year since the Great Recession. Yet, the number of U.S. families grew by 1.8 million that year. This means we’re still not building enough homes to close the long-standing gap affecting affordability.” High Building Costs: The rising costs of building materials, a tight labor market, and recent supply chain issues have all contributed to making home construction more expensive and slower, impacting the ability to meet demand. Regional Disparities: Certain high-demand areas are especially impacted, with buyers flocking in faster than homes can be built. Job growth and new housing permits often don’t align in these regions, leading to limited supply and increased competition. The Scope of the Housing Shortage According to a Real Estate News report, the U.S. housing market faces a shortfall of roughly 3.3 million homes. (see graph below): And looking ahead, experts like John Burns Research and Consulting (JBREC) project the need for 18 million new homes over the next decade to meet demand, accommodate new families, and replace older properties. So while there may be slightly more homes for sale than a year ago, there still aren’t enough to satisfy demand. If you’re ready to sell, this market condition can work in your favor. Key Takeaways If you’re considering listing your home, the tight inventory means more potential buyers are likely to compete for it, pushing interest—and possibly prices—higher. Because of this ongoing deficit, homes like yours stand out, giving you a potential edge in negotiations. Each housing market is unique, so collaborating with a knowledgeable real estate agent who understands your local market is essential. They’ll help you set an optimal price and develop a strategy that attracts the right buyers. Bottom Line While there are more listings than last year, overall inventory remains low. This makes it a strong seller’s market, giving you an advantage if you decide to list your home. Let’s connect so you can get expert advice on capitalizing on today’s market conditions.
Why Today’s Foreclosure Numbers Won’t Trigger a Market Crash
With rising costs impacting nearly every aspect of life, it’s understandable that many people are concerned about the potential impact on the housing market. As prices climb and budgets get tighter, there’s a natural worry about whether more homeowners might struggle to keep up with their mortgage payments, leading to a spike in foreclosures. But despite these concerns, the data tells a different story. Let’s take a closer look at what’s happening in today’s housing market – and why a foreclosure-driven crash is unlikely. Today’s Market vs. 2008: What’s Changed? First, it’s important to put today’s foreclosure numbers into perspective. Using data from ATTOM, a leading property analytics provider, we can see that the number of new foreclosures is much lower now than it was in the wake of the 2008 crash. Back then, foreclosure rates surged, leaving many homeowners in difficult situations. Today, however, the data shows a significant decline in foreclosures, with numbers even dropping in recent reports. This difference is clear, illustrating a more resilient housing market today. (See graph below:) Some may wonder why foreclosures have ticked up slightly compared to 2020 and 2021. The reason is simple: during those years, a foreclosure moratorium was in place, providing support to homeowners during challenging times. While we’re now seeing a small increase compared to those uniquely low years, foreclosure rates remain far below the levels seen during the housing crisis. Why Foreclosures Are Lower, Even as Costs Rise With the cost of living increasing, you might wonder why foreclosure rates remain manageable. A key factor is homeowner equity. Homeowners today have much more equity built up in their homes than they did during the 2008 downturn. As Bankrate points out: “In the years after the housing crash, millions of foreclosures flooded the housing market, depressing prices. That’s not the case now. Most homeowners have a comfortable equity cushion in their homes.” This equity acts as a buffer, helping homeowners avoid foreclosure if they face financial difficulties. Unlike in 2008, when many people owed more than their homes were worth, today’s homeowners have the option to sell their property if necessary, often at a profit, allowing them to avoid foreclosure altogether. What to Expect in the Housing Market While rising costs across the board certainly pose challenges, they don’t necessarily point to a foreclosure surge. The equity cushion many homeowners have built up over time is playing a crucial role in keeping foreclosure numbers low. Homeowners today have more resources and options, which strengthens the market against the risk of widespread foreclosures. Bottom Line While rising expenses in daily life may feel concerning, they’re not an indication that the housing market is on the verge of a foreclosure crisis. The data shows that foreclosure numbers remain low, and today’s homeowners are in a much stronger position financially than those impacted by the 2008 crash. Thanks to significant home equity, the market remains stable and resilient against a foreclosure wave.
Planning to Sell Your House in 2025? Get a Head Start Now
If selling your home in 2025 is part of your plan, now is the perfect time to start getting prepared. Even though it might feel like you have plenty of time, the sooner you start, the smoother the process will be. According to Danielle Hale, Chief Economist at Realtor.com: “Now is the time to begin thinking about your next steps in preparing to list your home... Survey data shows that 47% of sellers take more than a month to get their home ready for the market. Starting the process early gives you more flexibility.” Beginning your preparations now will help ensure your home is in top shape when it’s time to sell. Plus, working with a trusted real estate agent early on will provide expert guidance on which repairs and updates make the most sense for your market. Why Early Preparation Is Essential To secure the best price and sell your home quickly, it needs to shine. That means taking care of necessary repairs, decluttering, and possibly making value-adding improvements. By starting early, you’ll have the time to do it all without feeling rushed. Take things one step at a time—whether it's fixing that leaky faucet, updating your landscaping, or repainting a room. If you wait too long, your to-do list can get overwhelming. Realtor.com advises: “Don’t rush to get your home listed without addressing key repairs... Skipping important renovations could end up costing you more time and money in the long run.” What Should You Focus On? Feeling eager to start but unsure where to begin? Here’s a list of common improvements sellers are making today, and they might give you a few ideas: (see graph below): However, these should be tailored to your local market, and that’s where a knowledgeable real estate agent comes in. Why Working with a Local Agent Matters While the data above offers a general starting point, only a local real estate expert can tell you what buyers are looking for in your specific area. For instance, if updated bathrooms are driving fast sales locally, your agent might suggest investing there rather than in other areas. They’ll also help you determine whether larger updates, like replacing a roof or upgrading HVAC systems, are worth the investment based on the performance of comparable homes in your neighborhood. As real estate experts at Point note: “Not all home renovations offer the same return on investment, and focusing on the right upgrades is critical to boosting your home’s value.” Your agent will also guide you on small but impactful changes—like tidying up your yard, adding new mulch, or painting your front door—ensuring your home makes the best first impression. Bottom Line Planning to sell in 2025? Don’t wait until the last minute to get your home ready. Start prepping now to ensure everything is in place by the time you're ready to list. If you need expert advice on where to start, let’s connect and get the process moving!
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