Good News for Your Real Estate Goals: The Scoop on How Mortgage Rates Might Continue to Decline If you haven’t heard yet, mortgage rates have started to drop! This is good news if you’ve been on the fence with your real estate goals! And, there are a few reasons why this is – a combination of inflation and some decisions the Federal Reserve (the Fed) are making. Let us break it down for you. Good News for Your Real Estate Goals: The Scoop on How Mortgage Rates Might Continue to Decline The Federal Reserve has Paused Hikes on Interest Rates One of the main objectives of the Fed is to curb inflation. In order to do this, they previously initiated a series of increases in the Federal Funds Rate, aiming to moderate economic growth. While this doesn’t exactly determine mortgage interest rates, it does have an effect. Recently, we’ve seen a cooling down in inflation which indicates that the Fed’s rate hikes have been effective in bringing inflation down. Consequently, the Fed’s hikes have been less pronounced and less frequent since July (see the graph below): Good News for Your Real Estate Goals: The Scoop on How Mortgage Rates Might Continue to Decline In the last three meetings, the Fed has refrained from raising the Federal Funds Rate and has signaled potential rate cuts in 2024. According to the New York Times (NYT): “Federal Reserve officials left interest rates unchanged in their final policy decision of 2023 and forecast that they will cut borrowing costs three times in the coming year, a sign that the central bank is shifting toward the next phase in its fight against rapid inflation.” This indicates the Fed’s confidence in the improvement of the economy and inflation. For you, this means that we could continue to see lower mortgage rates and better affordability for home owners. Good News for Your Real Estate Goals: The Scoop on How Mortgage Rates Might Continue to Decline Mortgage Rates on a Downward Trend Mortgage rates are influenced by many factors – both inflation and the Fed’s actions (or recent lack thereof) play a significant role. Since the Fed put a pause on rate increases, the trajectory suggests that mortgage rates are likely to continue their downward trend (see the graph below): Good News for Your Real Estate Goals: The Scoop on How Mortgage Rates Might Continue to Decline While mortgage rates will still show some volatility, expert forecasts and recent patterns do suggest a potential downward trend in 2024. This is good news as you consider your goals! Lower rates would increase affordability for buyers, and will make the decision easier for sellers since they won’t be tethered to their currently lower mortgage rate. Summing It Up The Fed’s decisions have an indirect influence on mortgage rates and your affordability as a homeowner. By holding back from raising the Federal Funds Rate, there’s a likelihood that mortgage rates will continue to decline. To stay up to date on and in the loop on information and changes in the housing market, seek guidance from a trusted real estate expert.

Has your house been sitting on the market a while without selling? If so, you should know that’s pretty unusual, especially right now. That’s because the supply of homes available for sale is still far lower than what we’d see in a normal year. That means buyers have fewer options than they usually would, so your house should be an oasis in an inventory desert. So, if homebuyers have limited choices and your house still hasn’t sold, there’s a reason why. Let’s break one potential sticking point that may be turning buyers away: your asking price. Especially with today’s higher mortgage rates already putting a stretch on their budget, buyers are being a bit more sensitive about price. As a recent article from the Wall Street Journal (WSJ) says: “If you are serious about selling your home now, don’t get greedy with the asking price. This is still a seller’s home market as there simply aren’t enough affordable homes for sale in many parts of the country. But with average 30-year mortgage rates above 6%, buyers are much more price-sensitive than they were a year ago.” Why Setting the Right Price Matters While you want to maximize the return on your investment when you sell your house, you also need to be realistic based on current market conditions. The simple truth is your house is only going to sell for what people are willing to pay right now. This can be a hard thing to accept. Especially since emotions can run high during the selling process, which only complicates matters more. After all, you may have lived in this house for years, so it’s only natural you’re emotionally tied to it – and those heartstrings can make it harder to be objective.  But it’s important to acknowledge that a bigger-than-expected price tag deters buyers and may make them dismiss your house as a possibility before even seeing it. And if no one’s looking at it, how will it sell? If you want to get your house sold, you’ll need to do something to spark interest in your home again. That’s where a local real estate agent comes in. They’ll help use data to find out if it’s priced too high for your local market. They balance the value of homes in your neighborhood, current market trends and buyer demand, the condition of your house, and more to find the right price for your house, so you can close this chapter and start your next one. Bottom Line While it’s true there aren’t that many homes available for sale right now, your home’s asking price still matters. And, if it’s not selling, it may be priced too high. Let’s connect about how we can help with your real estate needs.

There’s a lot of confusion in the housing market these days – the market IS shifting! You’ve heard one thing on the news; another in your favorite podcast; you saw a social media post that you think maybe made a ton of sense; and your cousin said they are buying a home and the group skepticism at the Thanksgiving table added to the confusion. Surely, if you’ve been thinking about a move, you’ve got a bunch of questions on your mind. This is where a real estate professional (like me) comes into play!  Here are 3 of the top questions I’ve been answering on a daily basis about today’s housing market with some data to help answer them for you: 1. When will Mortgage Rates drop?Mortgage rates are higher than they’ve been in recent years and that has absolutely impacted how much home you can afford. It makes sense to be asking this question and, the truth is, no one knows for certain. But, we can look to historical trends for insight.  The relationship between mortgage rates and inflation has persisted for quite some time. When inflation goes up, so do mortgage rates – this was the case this past year. However, there has been an easing up in inflation and the Federal Reserve has paused their federal funds rate hikes. This leads many experts to anticipate a drop in mortgage rates.  We’ve seen some slight hints of lower interest rates in the recent weeks, though they’re still volatile and will likely remain volatile into 2024. Overall, many experts are anticipating a downward trend in rates through 2024. Aziz Sunderji, Strategist at Home Economicssays:“The bottom line is that interest rates are likely to be lower – perhaps even lower than many optimists think – in the weeks and months to come.” 2. What about Home Prices?Many people have been concerned throughout the year that home prices would crash. Well, that didn’t happen. Home prices in most of the nation, including Minnesota, increased; though at a slower pace of appreciation than in recent years. Experts are suggesting that this trend in slower price increases will continue, and it represents a more normal market than we’ve seen in the past couple years – which is good for the market.  The following graph from the Home Price Expectation Survey from Pulsenomics shows the confidence the 100 economists, real estate experts, and investment and market strategists have for home prices over the next few years. As you’ll see, home prices will keep climbing for the coming years. This means the home you purchase now will be worth more down the road, and the home you’re waiting to buy will cost more than it would now. 3. Is a Recession on the way? We’ve been hearing buzz about a possible recession for the last few years, and the regular Wall Street Journal polls suggest we have good news on that front. This time last year, most of these polls suggested we’d have a recession by now. Experts are changing their minds and saying a recession is less and less likely (see chart below): For the housing market, this is BIG news! Yes, the split is about half and half, but the shift in thought is the focal point – the majority of experts think we’ve already avoided a recession.  What I want you to know.There are many signs of hope for the future of the housing market. If you’re thinking about buying or selling it’s important to talk with a real estate agent to talk through those thoughts and questions and build a plan that will set you toward achieving your goals. When would it make sense for you and I to talk?

Some Highlights If you’re wondering what’s happening with home prices, know they’re still rising, just at a slower pace – and that’s perfectly normal for this time of year.  Based on typical seasonality in the market, prices go up most in the spring during the peak buying season, and then price growth slows down as the year goes on.Home prices aren’t falling. They’re just rising slower and going back to normal seasonal trends. That’s a good thing. If you’re curious about prices in our area, let’s connect. GO TO BLOG POSTS

Some Highlights When deciding between buying a home or renting, think about these three important factors.Buying a home means avoiding rising rents, owning a tangible and valuable asset, and growing your wealth over time.If you’re ready to enjoy the advantages of owning a home, let’s connect to discuss your options. GO TO BLOG POSTS

Are you contemplating selling your house but apprehensive about locating your next home, given the current housing inventory? This is a common concern, but there is encouraging information that may alleviate your apprehension. The surge in new home construction is contributing considerably to the housing stock, making it a vital factor to consider. Consider Newly Built Homes as Viable Options As you plan to list your property this summer, examining newly built homes becomes essential in broadening your potential choices for your subsequent relocation. Almost-Historic Proportions of New Home Inventory The present-day share of new homes is at an almost historic high in the total number of properties available for sale (refer to the graph below): The statistics indicate that newly constructed homes currently constitute 31% of the overall for-sale inventory. In contrast, in the past few decades, from 1983 to 2019, new constructions contributed on average to about 13% of the total housing stock. This implies that the proportion of available homes that are newly constructed is more than twice the standard rate. How This Affects You The overall supply of homes for sale remains on the lower side. Hence, it is vital to assess all potential options when supply is limited. The increase in new-home construction has been a pivotal force in augmenting inventory. Recent figures also demonstrate a further uptick in this trend with more new builds expected to hit the market in the forthcoming months. Robert Dietz, the Chief Economist at the National Association of Home Builders (NAHB), accentuates the role of new homes for potential buyers in the current housing market, stating: “With limited available housing inventory, new construction will continue to be a significant part of prospective buyers’ search in the quarters ahead.” Ensure you don’t underestimate this expanding market segment and risk losing out on the perfect home. Given that new constructions make up approximately 31% of the total sale inventory, neglecting to consider these options could exclude nearly one-third of potential choices from your search. If you’re planning to relocate, a local real estate agent can assist in selling your present home and exploring new builds in your vicinity. They possess the necessary expertise to manage both aspects of the process, aiding in your transition from your current home to your dream residence. In Conclusion The time is perfect to sell your property and capitalize on the emerging trends in new home construction. Let’s get in touch to guide you through the selling and buying process. Connect with us today and our REALTORS can make your move to a newly built home a successful venture.

If you’re considering putting your house on the market, it’s important to note that the current number of houses for sale is surprisingly low. This shortage is due to a below-average number of homeowners listing their properties this season. Examining data from every April since 2017 reveals that the only occasion when there were fewer houses listed for sale was in April 2020, during the onset of the COVID-19 pandemic which brought the housing market to a halt (as illustrated by the red mark in the below graph). Normally, about 500,000 sellers would have listed their homes in April. However, this year, less than 400,000 houses were listed in April (as shown in the following graph). Several factors are influencing this trend, but one primary reason keeping the inventory low is ‘rate lock.’ This occurs when homeowners hesitate to move because the mortgage rate on their existing property is lower than what they might receive for their next property. According to a recent Realtor.com survey, 56% of potential sellers planning to list their properties in the upcoming year are holding off, waiting for rates to decrease. While this cautious strategy may work for some, it presents a unique opportunity for those sellers who are ready to take the plunge now. If you’re prepared to move and your current home no longer meets your needs, you should seize this opportunity to make your mark. With fewer sellers listing their homes, buyers are presented with limited choices, allowing your property to attract maximum attention. Consequently, your house may receive multiple offers due to the existing scarcity of homes on the market – especially if you price it appropriately. As stated by Lawrence Yun, Chief Economist at the National Association of Realtors (NAR): “Inventory levels are still at historic lows . . . Consequently, multiple offers are returning on a good number of properties.” In Conclusion If you’re ready to sell your property now, outshine the competition before it enters the market. In doing so, your house could stand out and possibly receive multiple offers. Connect with a seasoned real estate expert to list your property in the market.

There are several potential advantages to selling your home in the current real estate market in the Twin Cities. Some of these advantages include: High demand: There is currently a high demand for homes in the Twin Cities area, which means that there may be more buyers looking to purchase a home like yours. This could potentially lead to a quicker sale and possibly even multiple offers.Low inventory: There is currently a low inventory of homes for sale in the Twin Cities, which means that there may be less competition for your home. This could potentially allow you to sell your home for a higher price than you might have been able to in a more saturated market.Favorable interest rates: Interest rates for mortgages are currently relatively low, which could make it more attractive for buyers to purchase a home. This could potentially lead to more interest in your home and a quicker sale.Strong local economy: The Twin Cities area has a strong and diverse economy, which could make it more attractive for people to move to the area. This could potentially lead to more buyers interested in purchasing a home in the area, including your own. Overall, it’s important to keep in mind that the real estate market can be unpredictable and there are always pros and cons to consider when selling your home. However, the current market conditions in the Twin Cities may offer some potential advantages for sellers. It’s important to always speak with a real estate professional about the nuances of the market. Let’s connect today about how we will help sell your home!

As the housing market evolves, you may be curious about where it’s headed. One factor that may concern you is home prices, which have slightly decreased since their peak in June of last year. You may have also heard rumors of an upcoming price crash in the news or on social media. As a result, you may be holding off on purchasing a home until prices drop significantly. However, this may not be the best approach. According to a recent Zonda survey, 53% of millennials are still renting because they are waiting for home prices to come down. However, recent data shows that home prices seem to have hit bottom and are now on the rise again. Selma Hepp, Chief Economist at CoreLogic, reports that “U.S. home prices rose by 0.8% in February, indicating that prices in most markets have already bottomed out.” Similarly, the most recent data from Black Knight demonstrates the same trend, comparing home price trends in November to those in February. So, should you continue waiting to buy a home until prices come down? Based on what the experts are saying, you shouldn’t. The data indicates that prices are increasing in much of the country, not decreasing. Additionally, the Home Price Expectation Survey’s latest data shows that experts expect home prices to rise steadily and return to more typical levels of appreciation after 2023. To understand what home values are doing in your area, you should consult a local real estate expert who can provide you with the most up-to-date information and expert advice. In Conclusion If you’re holding off on buying a home until prices drop, you should reconsider. Connect with a local expert to stay informed about what’s happening in your housing market.

Are you considering selling your house? Now could be the perfect time to do so, as the supply of homes for sale is currently very low. According to HousingWire, active listings recently hit a new low for 2023, indicating that the seasonal spring increase in inventory has yet to arrive. This is confirmed by the National Association of Realtors, which reports that the months’ supply of homes on the market is well below the balanced market level of around six months. When inventory is low, you’re likely to face less competition from other sellers, making it easier for your house to get attention from buyers. With more buyers than homes for sale, you may even receive multiple offers on your property, creating a bidding war that gives you greater leverage to sell on your own terms. However, to maximize this opportunity, it’s important to work with an experienced real estate advisor and ensure that your home is as attractive as possible to buyers. Average Number of Offers Received While the current market is still a strong seller’s market, it’s not the same frenzied environment we saw a few years ago. Today’s buyers are more focused on homes with the greatest appeal, so it’s crucial to make sure your property is priced competitively, move-in ready, and located in a desirable area. In short, if you’ve been waiting for the right time to sell your house, the low inventory this spring provides you with a significant advantage. Contact a real estate professional today to ensure that your home is ready to sell and take advantage of the current market conditions.

Selling a home can be a stressful and overwhelming process, but with the right strategies in place, it can be a successful and smooth transition. One important factor that can significantly impact the success of a home sale is staging. Staging a home is the process of arranging furniture, decor, and other items to make the property look its best and appeal to potential buyers. In this blog post, we’ll discuss how important staging is to a home sale in the Twin Cities. First and foremost, staging a home can help it stand out in a crowded real estate market. In the Twin Cities, there are an increasing number of homes for sale, and buyers have a lot of options to choose from. By staging a home, you can make it look more appealing and attractive to potential buyers, which can help it stand out from the competition. In fact, according to the National Association of Realtors, staged homes sell faster and for more money than homes that are not staged. Secondly, staging a home can help buyers envision themselves living in the space. When a home is staged, it’s easier for buyers to see how they could use the space and make it their own. This can be especially important in the Twin Cities, where buyers may be looking for specific features or amenities in a home. By staging a home to highlight its best features and potential uses, you can help buyers see themselves living in the space and increase the likelihood of a sale. At Pederson Realty, we believe in the power of staging to help our clients sell their homes quickly and for top dollar. That’s why we offer staging services as part of our comprehensive home selling package. Our experienced stagers can help you showcase your home’s best features and create a welcoming and inviting atmosphere that will appeal to potential buyers. In addition to staging, there are many other factors to consider when selling a home in the Twin Cities. At Pederson Realty, we offer a range of services to help our clients navigate the complex real estate market, including marketing, home pricing, and negotiation. To learn more about our services and how we can help you sell your home, visit our website at PedersonRealty.com. In conclusion, staging a home is a crucial part of the home selling process, especially in the Twin Cities. By staging your home, you can make it more appealing to potential buyers, help them envision themselves living in the space, and increase the likelihood of a sale. At Pederson Realty, we understand the importance of staging and offer comprehensive services to help our clients sell their homes quickly and for top dollar. Contact us today to learn more about how we can help you sell your home in the Twin Cities.

Spring has arrived, and that means more and more people are getting their homes ready to sell. But with recent shifts in real estate, this year’s spring housing market will be different from the frenzy of the past several years. To sell your house quickly, without hassles, and for the most money, be sure to follow these four simple tips: 1. Make Sure You Give Buyers Access One of the biggest mistakes you can make as a seller is limiting the days and times when buyers have access to view your home. In any market, if you want to maximize the sale of your house, you can’t limit potential buyers’ access to view it. If it’s not accessible, it could cost you by sitting on the market longer and ultimately selling for a lower price. 2. Make Your Home Look as Good as Possible on the Inside For anything to sell, especially your home, it must look inviting. Your real estate agent can give you expert advice on ideal staging for your home. Even updating a room with fresh paint, steam cleaning carpets, or removing clutter from the garage can make a big impact. 3. First Impressions Matter The old saying “you never get a second chance to make a first impression” matters when selling your house. Often, the first impression a buyer gets is what they see as they walk up to the front door. Putting in the work in on the exterior of your home is just as important as what you stage inside. Freshen up your landscaping to improve your home’s curb appeal so you can make an impact with potential buyers. 4. Price It Right This is probably the most important aspect of selling your home in today’s real estate market. If a house is priced competitively, it’s going to sell. Period. To do this, you have to know what’s happening with home prices in your area and understand the factors that are affecting the market right now. That’s why it’s best to work with a trusted real estate professional who can ensure you list your house at the right price. Bottom Line Everyone selling their home wants three things: to sell it for the most money they can, to do it in a certain amount of time, and to do all of that with the fewest hassles. To accomplish these goals, let’s connect so you can understand the steps you need to take to sell your home this spring. GO TO BLOG POSTS

A lot has changed over the past year, and you might be wondering what’s in store for the spring housing market. If you’re planning to sell your house this season, here’s what real estate experts are saying you should keep in mind. 1. Houses That Are Priced Right Are Still Selling Houses that are updated and priced at their current market value are still selling. Jeff Tucker, Senior Economist at Zillow, says: “. . . sellers who price and market their home competitively shouldn’t have a problem finding a buyer.” The need to price your house right is so important today because the market has changed so much over the past year. Danielle Hale, Chief Economist at realtor.com, explains: “With a smaller pool of buyers today and more competition from other homes on the market, homesellers will likely need to adjust their price expectations in the market this spring.” While this spring housing market is different than last year’s, sellers with proper expectations who lean on a real estate expert for the best advice on pricing their house well are still finding success. And that’s great news if you’re thinking about selling. 2. Buyers Are Still Out There As mortgage rates have risen and remain volatile, some buyers have pressed pause on their plans. But there are still plenty of reasons people are buying homes today. Lisa Sturtevant, Chief Economist at Bright MLS, spells out the mindset of today’s buyers: “For some buyers, higher mortgage rates simply means buying a home is out of the question unless home prices fall. For others, higher mortgage rates will be a hurdle but ultimately will not keep them from getting back into the market after sitting on the sidelines for months.” That’s why, if you’re interested in selling your house this spring, it’s helpful to work with a real estate agent who can help connect you with those buyers who are ready to purchase a home. Bottom Line There are still clear opportunities for sellers this spring. If you’re wondering if it’s the right time to make a move, connect with a trusted real estate advisor.

Though there are more homes for sale now than there were at this time last year, there’s still an undersupply with fewer houses available than in more normal, pre-pandemic years. The Monthly Housing Market Trends Report from realtor.com puts it this way:  “While the number of homes for sale is increasing, it is still 43.2% lower than it was before the pandemic in 2017 to 2019. This means that there are still fewer homes available to buy on a typical day than there were a few years ago.” The current housing shortage has an impact on how you search for a home this spring. With limited options on the market, buyers who consider what’s a necessity versus what’s a nice-to-have will be more successful in their home search. The first step? Get pre-approved for a mortgage. Pre-approval helps you better understand what you can borrow for your home loan, and that plays an important role in how you’ll put your list together. After all, you don’t want to fall in love with a home that’s out of reach. Once you have a good grasp on your budget, the best way to prioritize all the features you want and need in a home is to put together a list. Here’s a great way to think about them before you begin: Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle.Nice-To-Haves – These are features you’d love to have but can live without. Nice-to-haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of the these, it’s a contender.Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner. Finally, once you’ve created your list and categorized it in a way that works for you, discuss it with your real estate agent. They’ll be able to help you refine the list further, coach you through the best ways to stick to it and find a home in your area that meets your needs. Bottom Line Prioritizing what you need in a home is a critical first step the buying process. If you’re ready to find the one that’s best for you, connect with a local real estate agent.

The housing market has been going through shifts lately. That’s why it’s so important to work with an industry professional who can be your guide throughout the process. A real estate expert uses their knowledge of what’s really happening with home prices, housing supply, expert projections, and more to give you the best advice. Someone who can provide clarity like that is critical right now. Jay Thompson, Real Estate Industry Consultant, explains: “Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.” Unfortunately, when information in the media isn’t clear, it can generate a lot of fear and uncertainty in the market. As Jason Lewris, Co-Founder and Chief Data Officer at Parcl, says: “In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.” But it doesn’t have to be that way. Buying a home is a big decision, and it should be one you feel confident making. You can lean on an expert to help you separate fact from fiction and get the answers you need. The right agent can help you understand what’s happening at the national and local levels, and they can debunk headlines using data you can trust. Experts have in-depth knowledge of the industry and can provide context, so you know how current trends compare to the normal ebbs and flows in the industry, historical data, and more. Then, to make sure you have the full picture, an agent can tell you if your local area is following the national trend or if they’re seeing something different in your market. Together, you can use all that information to make the best possible decision. After all, making a move is a potentially life-changing milestone. It should be something you feel ready for and excited about. And that’s where a trusted expert comes in. Bottom Line For expert advice and the latest housing market insights, connect a real estate professional today.

The biggest challenge the housing market’s facing is how few homes there are for sale. Mark Fleming, Chief Economist at First American, explains the root causes of today’s low supply: “Two dynamics are keeping existing-home inventory historically low – rate-locked existing homeowners and the fear of not finding something to buy.” Let’s break down these two big issues in today’s housing market. Rate-Locked Homeowners According to the Federal Housing Finance Agency (FHFA), the average interest rate for current homeowners with mortgages is less than 4% (see graph below): But today, the typical mortgage rate offered to buyers is over 6%. As a result, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. This is a situation known as being rate locked. When so many homeowners are rate locked and reluctant to sell, it’s a challenge for a housing market that needs more inventory. However, experts project mortgage rates will gradually fall this year, and that could mean more people will be willing to move as that happens. The Fear of Not Finding Something To Buy The other factor holding back potential sellers is the fear of not finding another home to buy if they move. Worrying about where they’ll go has left many on the sidelines as they wait for more homes to come to the market. That’s why, if you’re on the fence about selling, it’s important to consider all your options. That includes newly built homes, especially right now when builders are offering concessions like mortgage rate buydowns. What Does This Mean for You? These two issues are keeping the supply of homes for sale lower than pre-pandemic levels. But if you want to sell your house, today’s market is a sweet spot that can work to your advantage. Be sure to work with a local real estate professional to explore the options you have right now, which could include leveraging your current home equity. According to ATTOM: “. . . 48 percent of mortgaged residential properties in the United States were considered equity-rich in the fourth quarter, meaning that the combined estimated amount of loan balances secured by those properties was no more than 50 percent of their estimated market values.” This could make a major difference when you move. Work with a local real estate expert to learn how putting your equity to work can keep the cost of your next home down. Bottom Line Rate-locked homeowners and the fear of not finding something to buy are keeping housing inventory low across the country. But as mortgage rates start to come down this year and homeowners explore all their options, we should expect more homes for sale.

If you’re thinking of selling your house, it’s important to work with someone who understands how the market is changing and what it means for you. Here are five reasons working with a professional can ensure you’ll get the most out of your sale. 1. They’re Experts on Market Trends With today’s housing market defined by change, it’s critical to work with someone who knows the latest information and how it impacts your goals. An expert real estate advisor knows about national trends and your local area too. More importantly, they’ll give insight to what all of this means for you, so they’ll be able to help you make a decision based on trustworthy, data-bound information. 2. A Local Professional Knows How To Set the Right Price for Your Home Home price appreciation has moderated this year. If you sell your house on your own, you may be more likely to overshoot your asking price because you’re not as aware of where prices are today. Pricing your house too high can deter buyers or cause your house to sit on the market for longer. Real estate professionals look at a variety of factors, like the condition of your home and any upgrades you’ve made, with an unbiased eye. They compare your house to recently sold homes in your area to find the best price for today’s market so your house sells quickly. 3. A Real Estate Advisor Helps Maximize Your Pool of Buyers Since buyer demand has cooled this year, you’ll want to do what you can to help bring in more buyers. Real estate professionals have a wide range of tools at their disposal, such as social media followers, agency resources, and the Multiple Listing Service (MLS), to ensure your house gets in front of people looking to make a purchase. Investopedia explains why it’s risky to sell on your own without the network an agent provides: “You don’t have relationships with clients, other agents, or a real estate agency to bring the largest pool of potential buyers to your home.” Without access to your agent’s tools and marketing expertise, your buyer pool – and your home’s selling potential – is limited. 4. A Real Estate Expert Will Read – and Understand – the Fine Print Today, more disclosures and regulations are mandatory when selling a house. That means the number of legal documents you’ll need to juggle is growing. The National Association of Realtors (NAR) puts it like this: “There’s a lot of jargon involved in a real estate transaction; you want to work with a professional who can speak the language.” 5. A Local Professional Is a Skilled Negotiator In today’s market, buyers are regaining some negotiation power. If you sell without an expert, you’ll be responsible for any back-and-forth. That means you’ll have to coordinate with: The buyer, who wants the best deal possibleThe buyer’s agent, who will use their expertise to advocate for the buyerThe inspection company, which works for the buyer and will almost always find concerns with the houseThe appraiser, who assesses the property’s value to protect the lender Instead of going toe-to-toe with these parties alone, lean on an expert. They’ll know what levers to pull, how to address everyone’s concerns, and when you may want to get a second opinion. Bottom Line Don’t go at it alone. If you’re planning to sell your house this spring, let’s connect so you have an expert by your side to guide you in today’s market.

After steadily falling over the winter, mortgage rates have started to rise in recent weeks. This is concerning to some potential homebuyers as the combination of higher mortgage rates and higher prices have made homes less affordable. So, if you’re planning to purchase a home this year, you too may be wondering if now’s the right time to buy or if you should hold off on your search until rates come back down. The recent uptick in rates has been driven by what’s happening with inflation. Joel Kan, Vice President and Deputy Chief Economist at the Mortgage Bankers Association (MBA), explains: “Mortgage rates increased across the board last week, pushed higher by market expectations that inflation will persist, thus requiring the Federal Reserve to keep monetary policy restrictive for a longer time.” The most recent weekly average 30-year fixed mortgage rate reported by Freddie Mac is 6.5%. It’s the third week in a row that rates have increased and puts them at the highest point they’ve been this year (see graph below): Advice for Home Shoppers If you’re thinking about pausing your home search because rates have started to go up again, you may want to reconsider. This could actually be an opportunity to buy the home you’ve been searching for. According to the MBA, mortgage applications declined by 13.3% in just one week, so it appears the rise in mortgage rates is leading some potential homebuyers to pull back on their search for a new home. So, what does that mean for you? If you stay the course, you’ll likely face less competition among other buyers when you’re looking for a home. This is welcome relief in a market that has so few homes for sale. Bottom Line Over the last few weeks, mortgage rates have risen. But that doesn’t mean you should delay your plans to buy a home. In fact, it could mean the opposite if you want to take advantage of less buyer competition. Let’s connect today to explore the options in our local market.

Some Highlights As you get ready to sell your house, there are specific things you can add to your to-do list.These include decluttering, taking down personal photos and items, and power washing outdoor surfaces. Reach out to get a home valuation.Let’s connect so you have advice on what you may want to do to get your house ready to sell this season.

Many of today’s homeowners bought or refinanced their homes during the pandemic when mortgage rates were at history-making lows. Since rates doubled in 2022, some of those homeowners put their plans to move on hold, not wanting to lose the low mortgage rate they have on their current house. And while today’s rates have started coming down from last year’s peak, they’re still higher than they were a couple of years ago. Today, 93% of outstanding mortgages have a rate at or below 6%. That means a strong majority of homeowners with mortgages have a rate below what they’d get if they moved right now. But if you’re a homeowner in that position, remember that mortgage rates aren’t the only thing to consider when making a move. Your mortgage rate is important, but there are plenty of reasons you may still need or want to move. RealTrends explains: “Sellers who don’t have to move won’t be moving. The most common sellers will be: Homeowners downsizing . . . people moving to get more space, [households] looking for better schools…etc.” So, if you’re on the fence about selling your house, consider the other reasons homeowners are choosing to make a move. A recent report from the National Association of Realtors (NAR) breaks down why homeowners have decided to sell over the past year: As the visual shows, the most commonly cited reasons for selling were the desire to move closer to loved ones, followed by moving due to retirement, and their neighborhood becoming less desirable. Additionally, the need for more space factored in, as did a change in household structure. If you also find yourself wanting a change in location or needing space your current house just can’t provide, it may be time to sell. What you want and need in a home can be reason enough to move. To find out what’s right for you, work with a trusted real estate professional who will offer advice and expert guidance throughout the process. They’ll be able to lay out all your options – giving you what you need to make a confident decision. Bottom Line When deciding whether or not to move, you have a lot to consider. There are plenty of non-financial reasons to factor in. Let’s connect today to weigh the benefits of selling your house.