With the school year underway and college football in full swing, we wanted to check in with a fall market update so you can know what to expect if your end-of-year plans potentially include buying or selling a home. While spring is the busiest season for real estate, there are plenty of reasons to make a real estate move this fall. Here’s what buyers and sellers should keep in mind.
Expect less competition and more homes to choose from.
New construction home sales are down, and sales of existing homes have dropped. That means less competition and more homes to choose from. It also means buyers can take a deep breath, stretch their negotiation muscles a little, and be more choosy as inventory hits the market.
Home prices and rates will likely remain elevated through the end of the year.
But that’s no cause for concern—buyers can combat high prices and rising interest rates by researching what they can afford and sticking to a strict budget ahead of their house hunt.
Although rates are up, they’re expected to stabilize.
Lawrence Yun, the chief economist for the National Association of REALTORS, believes current mortgage rates already account for the Fed’s current and anticipated future interest rate hikes. That puts rates right at 6% by year’s end.
As always, buyers should research lenders and get preapproved for a mortgage before shopping for a home.
Even though competition among buyers has thinned, buyers still need to be ready to act when a home that checks all the boxes hits the market—a preapproval does just that.
Set a realistic price.
The bidding wars of the past two years are largely a thing of the past. Sellers need to approach the market this fall with realistic expectations, well-versed in current market conditions. And while it might not be red-hot, the market is still hot for sellers, with home prices up 14.3% for the year through August 2022.
Keep tried-and-true seller tips top of mind.
For the past few years, sellers could get away with minimal home repairs and preparations. With the market slowing down, discerning buyers will reward seller efforts like enhancing curb appeal, decluttering the whole house, and depersonalizing bedrooms and living rooms.
Sell with confidence.
As the residential real estate market levels out, sales may continue to trend downward, but it’s nothing to be alarmed about because prices are high and inventory is still playing catch up to extreme shortages.
Remember, real estate trends are highly localized, even from one ZIP code to the next. Working with a knowledgeable agent is one of the best decisions you can make to reach your real estate goals. At 616 Realty, we pivot our strategies to match current market conditions. If you are looking to buy or sell, have questions about the housing market, or are interested in a home estimate, we’d love to help you.