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Your Guides to Buying or Selling a Home This Fall
If you are considering buying or selling a home this fall, you probably have a lot of questions. Mortgage rates have been rising, inflation concerns have some worried about investing in real estate, and rents continue to rise. For many waiting until they feel more comfortable with the market, may not an option. The reality in real estate and in life is that there really is no absolute perfect time to buy or sell. In real estate there's an old saying, "The best time to buy a home is right now or 20 years ago." Hindsight is always 20/20 and the best we really can do is educate ourselves with the necessary information so that we make a smart; informed decision. The great news is while it is still a seller's market buyers can take advantage of the changes in the market. We are going to outline the best choices to make to sell or buy this fall. Please do not hesitate to reach out to us. We have helped many hundreds of buyers and sellers over the years and are local market experts here in the Research Triangle.
Seller Smarts: Fall 2022
Many home sellers express concern that they have missed the 2021 peak of the market, but homes have continued to appreciate. In The Triangle where we have a strong job market, combined with constricted inventory coupled with sustained demand, homes have not lost value despite a slight increase in inventory on the market. We are seeing a cooling in the rise of prices. Where we saw increases of 20% in some areas, the prices are not appreciating quite as fast now. This is due to more homes coming to the market combined with rising mortgage rates. How does inflation affect the price of my home? If I sell during an inflationary period, is that a bad thing?
According to Joel Kan the deputy chief economist at the Mortgage Banker's Association, "The speed and level to which rates have climbed this year have greatly reduced refinance activity and exacerbated existing affordability challenges in the purchase market." What exactly does that mean for sellers? For sellers, your home may stay on the market longer if potential buyers require financing to purchase a home. Sellers must keep in mind that many buyers wish to stabilize housing expenses; because rents are rising as well. During inflationary periods it's not uncommon for investors to purchase as their focus is on long term rents. For those sellers who really need to sell now, it is critical to price your home appropriately and be prepared to negotiate a little. This is where our experience pays dividends as we are experts at pricing homes to sell and in negotiation. If you need to relocate as well, we can help you every step of the way, to save you money and headaches during your transition. For more on what you can expect as a seller in today's market check out our 2022 Fall Guide here.
Leveraging Market Conditions: Fall 2022 Buyer Overview
For the first time in several years, home buyers are beginning to be able to negotiate without being rejected outright by Sellers. For those who need or want to buy now, prices have begun to drop a little as a result of rising mortgage rates and a slight increase in inventory. Mortgage rates have doubled since 2020, but perspective is important as they are still below the 50 year average according to Freddie Mac. Data from 1971 shows the average for mortgage rate during this time at 7.75% or a full percentage point above where they are today. For certain buyers who are purchasing a new home to avoid unpredictable rents or for those who do not require a large amount of financing, it is possible you may be able to save several thousands of dollars by purchasing now, rather than waiting to see what might happen in the future.
If you are in a position to buy, now you have more opportunities for negotiations. Just 6 months ago bidding wars were still common and non refundable due diligence fees were averaging 5-10% of the offer price. Seller's were laughing at buyers requesting inspection repairs and buyers making offers that required them to sell their existing home weren't even considered.This fall buyers have more room for negotiations. Due Diligence amounts have begun to drop and now average 3-5% of the offer price and Sellers are once again beginning to work with Buyers on inspection items.{Note that we are not seeing homes on the market for very long periods of time, If they are priced correctly in desirable areas, they are still selling quickly.} If you find a home that meets your criteria or you want more information about what homes are available around you put your trust a local Realtor. Realtors understand the current markets, financing options that are available and the best Realtors can and will make sure you have the information you need to make a smart, informed decision as to whether now is the right time to buy and where. For more information on what you can expect right now check out our Fall 2022 Buyers Guide here.
The Brokers at My NC Homes has had the privilege of representing buyers, investors and sellers in the Research Triangle for decades. We would be honored to sit down with you, answer your questions and help you strategize so that you can make informed real estate decisions this Fall 2022. Still undecided? See what our clients have to say about us.
Posted by Larry Tollen on
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