Home prices continue to see a spike despite high mortgage rates and increasing house supply. These are a few factors that typically result in reduced home prices; so far, though, the record high costs of housing remain quite resilient.
Currently, national data is showing some conflicting trends. Although home sales are down, prices of housing remain up. According to the NAR, sales of homes in June saw a decline of 5.4% from May 2022 and 14.2% from the previous year. However, the median home sale price is at a record high —according to Realtor.com, the national average single-family home process was $450,000 in June 2022, which shows an increase of 16.9% from June 2021 and a whopping 31% from June 2020. With houses coming at almost half a million dollars, the cost of housing is prohibitive for many buyers.
According to the data analytics and technology firm Black Knight, the growth rate of home pricing dropped by almost 2% in June, which is the biggest slowdown in a single month since 1970. However, if you consider the annual price growth rate of 15%, a slow down could mean a price growth rate of just 5%.
So if you expect home prices to suddenly take a nose dive, you are in for a rude surprise.
Tips for Selling a Home Regardless of Market Condition
Although there is a demand for homes, their prices are not making the housing market attractive for buyers. So how do sellers help their homes stand out during slow times? Let’s take a look at some tips.
Working with the Right Agent
Working with the right agent is one of the most important things that a seller can now do. A good agent will help them understand the market and walk them through the entire selling process, from helping them make the listings to comparing offers.
By working with a good agent, you may be able to negotiate a higher final price for your home, which you may not be able to do on your own. According to the NAR, “for sale by owner,” homes sold for an average of 16% less than homes that were sold with the assistance of a top agent.
The right agent has the experience, expertise, and resources necessary to help you sell your home at the right price in the quickest way possible. They understand what buyers want and can match sellers with these buyers.
In addition, agents can play a big role in promoting and showing your house. Once you start getting offers on your home, an agent will evaluate each one and find the one that best fulfills your goals.
In short, a top agent has the negotiation skills that can help you negotiate the best offer for your home.
Pricing Your Home Right
Pricing your home right is complicated. When mortgage rates are low and there is a shortage of houses in the market, sellers can get away with asking for higher prices. Even if the price is on the high end, sellers will still receive a few offers for people desperate to find a home that fulfills their needs quickly.
However, during a housing market slowdown, if you need to sell your home quickly, you need to price it slightly lower than comparable homes. However, it is also not a good idea to price your home too low and leave money on the table.
With the help of an agent, you can set a price that is not too high, and that will attract the attention of serious buyers.
Enhancing Curb Appeal
Curb appeal is a very important driving factor in the sale of your home. After pricing, curb appeal is the most important factor that can drive interested buyers to your home. A good first impression works well for selling your home.
To ensure your home has curb appeal, take a walk outside and view your home from all angles with a critical eye. Check to see if your home stands out from other houses in the neighborhood. It doesn’t matter how spectacular your home is from the inside if it doesn’t have good curb appeal.
Repairing and Upgrading
If you want to sell your home quickly, it is important to ensure its condition meets the buyer’s expectations. If repairs are needed, get those done first before you put your house on the market. With the supply of homes increasing, buyers will only consider homes that are in move-in condition; otherwise, sellers will need to offer cash at closing so that buyers can make the necessary repairs.
On the other hand, when home inventory is low, buyers may bid on a home even if it requires fixes or upgrades.
As such, during a housing market slowdown, sellers will need to work with real estate agents to ensure their home is up to snuff and looks like it has jumped off the pages of a magazine.
Home staging is an effective way to sell your home quickly. It might cost you a few thousand dollars, but the amount will be offset by the higher price your home will get. A home staging company will rearrange and decorate your home with existing and new furniture and fixtures to make your home look better.
This is an excellent way to sell high-end homes. During a slow market, a home staging company can help set your home apart from others and make it more appealing.
When buyers are slow to come, it is crucial to be flexible and ensure you fulfill all the terms that your buyer wants if they are offering you a good deal. This means that if your buyer wants the appliances in your kitchen, then you should consider leaving the refrigerator and dishwasher behind.
If there are some items that have deep sentimental value, you need to remove them before the showing, or else the buyer may have their heart set on them, and it may become difficult for you to dissuade them from it.
When competition between sellers is high, you want to make sure your house is not languishing in the market and is bought off quickly.
A Housing Market Outlook for 2022 and Beyond
Early forecasts for 2022 predicted that house prices would have become low enough for it to become a buyer’s market. However, the conditions were not ideal, and it is expected that home buyers will continue to experience some more pain for the rest of the year. However, the market is expected to cool down in the early months of 2023, with the year showing an increase of only 4.3% because higher mortgage rates and record-high prices will force the market to adjust.
Are you looking for financing to buy a home?
Integrity Mortgage LLC (NMLS #1692497) is a full-service housing lender that can help you finance your new home and save money through better refinancing options. We can help you get the right mortgage term quickly and conveniently and ensure you become a part of Maine’s thriving homeowner community.