As we head into fall, economic volatility has left buyers and sellers in the housing market feeling some whiplash. Inconsistent mortgage and financial trends can make it difficult to plan ahead for your homebuying or selling journey, but I’m here to help you make sense of things. Here’s what you need to know heading into October:
What sellers need to know
- If you have owned your home for a while and have built significant equity, it may benefit you to sell before prices fall further—and while you have the opportunity to find your next home at a better price than expected. With mortgage rates near 7%, their highest level in years, most buyers aren’t able to pay prices similar to what you may have seen over the summer. As a result, the national median sale price is down about 6% from its peak in mid-June.
- With more buyers feeling financially stretched, the most important thing we can do to invite offers on your home is to price competitively and adjust quickly and aggressively as needed to any changes in the market.
- Buyers are also being more particular about the condition of the home they buy, and many are including contingencies. I can help you decide if there are key repairs or updates that you should make and how to stage your home to make the best debut possible.
- Your home will likely take longer to sell than it would have earlier this year, but if we are strategic, I know we can get the right offer. I’ll stay engaged with prospective buyers and buyer’s agents and keep you regularly updated so we can respond quickly to changing conditions in the market.
What buyers need to know
- In light of the changing mortgage rates we’ve seen, if you qualified for your mortgage more than a month ago, it may be a good idea to get requalified and confirm your budget and loan options based on rates. I can connect you with an expert from Bay Equity who can help you explore your options.
- If you’re buying right now, it’s important to choose a home with a mortgage payment that you can comfortably afford. You may have the chance to refinance to a lower rate down the road, but we can’t predict how long it will be if rates were to fall. This mortgage calculator can help you better understand your budget.
- There are fewer new listings hitting the market, but there is also significantly less competition among buyers. More homes are on the market for several weeks or are dropping their price, so we can be more selective when it comes to which homes to place an offer on. Let’s talk about your non-negotiables and nice-to-haves, so we know the right home when we see it.
Here’s what experts are saying about the market right now:
“Soaring mortgage rates are throwing a wrench into prospective buyers’ plans. Many would-be buyers are dropping out of the market because they can no longer afford the home they want, resulting in a dramatic dip in home sales. For buyers who need a home right now—and can still afford it—compromise is the name of the game. Some buyers will choose to sacrifice on location or move further away from the city center so they can get the space they want, while others will settle on a smaller home in their ideal location.” – Senior Economist Sheharyar Bokhari
If you’d like to learn more about what’s going on in the market or have questions about what it all means for you, please don’t hesitate to reach out. I’m happy to schedule a phone call, video chat, or meet you for coffee.
