The Best Time To Sell Your House Is When Others Aren’t Selling
If you’re thinking about selling your house, you should know the number of homes for sale right now is low. That’s because, this season, there are fewer sellers listing their houses for sale than the norm.Looking back at every April since 2017, the only year when fewer sellers listed their homes was in April 2020, when the pandemic hit and stalled the housing market (shown in red in the graph below). In more typical years, roughly 500,000 sellers add their homes to the market in April. This year, we saw fewer than 400,000 sellers entering the market in April (see graph below):While there are a number of factors contributing to this trend, one thing keeping inventory low right now is that some homeowners are reluctant to move when the mortgage rate they have on their current house is lower than the one they could get today on their next house. It’s called rate lock.As a recent survey from Realtor.com explains, 56% of people who are planning to sell in the next 12 months say they’re waiting for rates to come down.While this wait-and-see approach is right for some sellers, it also creates an opening for more eager sellers to jump in now.If your current house truly doesn’t fit your needs anymore and you’re ready to move, don’t miss this chance to stand out. When fewer sellers are putting their homes up for sale, buyers will have fewer options, so you set yourself up to get the most eyes possible on your house. That’s why your house could see multiple offers as buyers compete over the limited supply of homes for sale – especially if you price it right.As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:“Inventory levels are still at historic lows . . . Consequently, multiple offers are returning on a good number of properties."SBottom LineIf you’re ready to sell now, beat the competition before it comes onto the market. If you do, your house should stand out and could get multiple offers. Partner with a real estate professional to get your house on the market.
The Impact of Inflation on Mortgage Rates
If you’re reading headlines about inflation or mortgage rates, you may see something about the recent decision from the Federal Reserve (the Fed). But what does it mean for you, the housing market, and your plans to buy a home? Here’s what you need to know.Inflation and the Housing MarketWhile the Fed’s working hard to lower inflation, the latest data shows that, while the number has improved some, the inflation rate is still higher than the target (2%). That played a role in the Fed's decision to raise the Federal Funds Rate last week. As Bankrate explains:“Keeping its inflation-fighting streak alive, the Federal Reserve has raised interest rates for the 10th time in 10 meetings . . . The hikes aimed to cool an economy that was on fire after rebounding from the coronavirus recession of 2020.” While the Fed’s actions don’t directly dictate what happens with mortgage rates, their decisions do have an impact and contributed to the intentional cooldown in the housing market last year. How This Impacts You During times of high inflation, your everyday expenses go up. That means you’ve likely felt the pinch at the gas pump and in the grocery store. By raising the Federal Funds Rate, the Fed is actively trying to lower inflation. If the Fed is successful, it could also ultimately lead to lower mortgage rates and better homebuying affordability for you. That’s because when inflation is high, mortgage rates tend to be high. But, as inflation cools, experts say mortgage rates will likely fall.Where Experts Think Mortgage Rates and Inflation Will Go from HereMoving forward, both inflation and mortgage rates will continue to impact the housing market. And as Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:“Mortgage rates are likely to descend lower later in the year as the consumer price inflation calms down . . .” Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), explains: “We continue to expect that mortgage rates will drift down over the course of the year as the economy slows . . .”While there’s no way to say with certainty where mortgage rates will go from here, the experts think mortgage rates will trend down this year if inflation comes down too. To stay informed on the latest insights, connect with a trusted real estate advisor. They keep their pulse on what’s happening today and help you understand what the experts are projecting and how it could impact your homeownership plans.SBottom LineDon’t let headlines about the latest decision from the Fed confuse you. Where mortgage rates go from here depends on what happens with inflation. If inflation cools, mortgage rates should tick down as a result. Lean on a trusted real estate professional so you have expert insights on housing market changes and what they mean for you.
Is the Housing Market in Baltimore Really Headed for a Crash?
The whispers have been growing louder, hinting at a looming housing market crash. But is Baltimore's real estate scene really echoing the past? Let's dive into the facts and dispel some myths. 1. A Look Back at 2008 The 2008 housing crisis was a significant event that left an indelible mark on many. But as any seasoned Baltimore Realtor will tell you, today's market is narrating a different tale. In fact, many experts believe that the worst home price declines are behind us. 2. The Loan Landscape Has Changed Remember the days when almost anyone could secure a home loan? Those times are long gone. Today, banks have become more stringent with their lending standards, ensuring a more stable market. This shift has been crucial in safeguarding the Baltimore housing market from the pitfalls of the past. Curious about how inflation might impact mortgage rates? Check out our post on the impact of inflation on mortgage rates. 3. Unemployment: A Quick Recovery The recent pandemic did cause a spike in unemployment rates. However, Baltimore has shown resilience. The job market has bounced back to pre-pandemic levels, making today's housing market even more robust. For those considering a change, the power of remote work has transformed the way we approach our Baltimore home hunt. Here’s how the quick job recovery this time helps the housing market. Because so many people are employed today, there’s less risk of homeowners facing hardship and defaulting on their loans. This helps put today’s housing market on stronger footing and reduces the risk of more foreclosures coming onto the market. There Are Far Fewer Homes for Sale Today 4. Housing Inventory: Quality Over Quantity Speak to any Baltimore Realtor, and they'll tell you about the current inventory situation. In 2008, there was an oversupply of homes. Today, Baltimore faces a different challenge: a shortage of homes due to years of underbuilding. This limited inventory ensures that home prices remain stable. If you're considering a change, perhaps it's time to think about a newly built home. 5. Equity Levels: Standing Strong The limited inventory of homes for sale in Baltimore has kept upward pressure on home prices during the pandemic. As a result, homeowners today boast near-record levels of equity. This equity acts as a safety net, protecting homeowners even in challenging times. For a deeper dive into building wealth through homeownership, our Realtor's Guide in Baltimore is a must-read. 6. Expert Opinions Matter Molly Boesel, a renowned economist, states, "Most homeowners are well positioned to weather a shallow recession." This sentiment is echoed by many in the Baltimore real estate scene, including our very own Mike Fielder. In Conclusion While concerns about the housing market are natural, the data speaks for itself. Baltimore's housing market stands on solid ground, distinctly different from the past. So, whether you're looking to buy, sell, or simply understand the market better, trust the expertise of a seasoned Baltimore Realtor. For more insights, news, and updates on the Baltimore real estate market, don't forget to visit our blog regularly. Remember, history isn't always doomed to repeat itself. With the right knowledge and guidance, you can navigate the Baltimore housing market with confidence. If you're a Baby Boomer in Baltimore, you might be wondering whether to buy or rent after selling your house. We've got insights on that too!
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