June 2022 - Real Estate Market Update
After two years of unprecedented growth in the real estate market, things are changing and they are changing fast. The pandemic drastically affected the housing market. Since 2020, we have experienced bidding wars, low inventory, and skyrocketing prices fueled by super-low interest rates.
The mortgage rates have now changed and gone up. This has caused the housing market to slow down, however, it is important to note that we are still in a seller's market. It is just more balanced. The higher interest rates have simply lowered demand which means that homes may take a little longer to sell. With that being said, it is super important for home sellers to price their homes correctly. Pricing strategically is key. You can achieve this by getting a current market valuation.
In addition to the increase in mortgage rates, we have seen a rise in home values. This means that fewer buyers will be able to afford to purchase a home in this market.
Homebuyers haven’t had an easy go of it for the past couple of years, but there are signs that this is behind us. You finally have more options to choose from. But, if a home is priced well, it's still going to be competitive.
Housing inventory is still exceptionally low and demand is likely to stay strong. Rather than seeing prices drop, they are expected to grow, but at a slower pace. So where is the housing market headed? Buyers across the country have been waiting for summer to finally see a return to some normalcy.
As it turns out, a return to normal is probably pretty far off, but we are starting to see a slight shift in the real estate market. Things are trending upwards and we are beginning to see a more balanced market.
It is important to remember that real estate trends are local. Work with an agent that is knowledgeable in the areas you want to purchase or where you’re selling your home. Know what you can afford and stick to a realistic budget.
For home sellers, it will still be a strong seller’s market, but not as intense as it was earlier this year with a smaller likelihood of bidding wars driving up your sales price. Get ahead of preparing to sell your home. A local agent can help decide what repairs and upgrades could help with the sale.
Whether you are buying or selling, try not to get too caught up in the headlines.
Hiring a professional to stage and photograph your home prior to putting it on the market is a great way to create interest in your property. However, you still need to do some work on your home before bringing in the pros to make it shine. From depersonalizing to getting rid of clutter, here’s how to get your home ready to sell faster and maybe even at a higher price.
If you’re selling your home in Central Oregon, real estate professional Daren Cullen can help you maximize your sale price. Call (541) 312-2113!
Declutter and Clean
Stepping over dog toys or seeing family photos on the wall may make some potential buyers feel warm and fuzzy. But most people want to see a home for sale as a blank canvas. They want to imagine living their lives in your home, not fit themselves into the few open spaces they find. Plus, clutter takes up space and makes the house feel messy.
It won’t matter how appealing the architecture is or how much natural light you take advantage of. If your home has stuff stacked everywhere, buyers won’t see the attractive details — only the mess. So take some time to get organized, and break your plans into smaller projects you can accomplish each day. Make a list of the things you need to declutter, and eliminate clutter wherever it dwells. Don’t forget to enlist some help from family and friends — or a professional decluttering service — if needed!
After decluttering, every corner of your home should be given a deep cleaning. You’re best off hiring a maid service for this job. If you’re going to use your own furniture to stage your home, make sure you only use your best pieces and that they’re free of stains. You may even want to consider having some of your pieces reupholstered.
Depersonalize Before Open Houses
Once you make the decision to sell, it’s tempting to want to move quickly. But your family’s clutter all over won’t bode well for selling your home. And that’s because many buyers have different tastes. To appeal to the most potential buyers possible, you should aim for neutral changes to your home’s décor and paint. This way, you appeal to the majority and allow them to visualize themselves living in your house.
Stow Your Stuff Out of Sight
Whenever possible, pack up as if you’re preparing to move immediately. Getting your possessions out of the way can help you envision the space in a whole new way — and it helps visitors do the same. Try boxing up belongings and moving them to the garage if you have one. Alternatively, opt for temporary storage. Short-term storage may not cost a whole lot, and it can help you prepare for moving day, too.
Make the Most of Your Space
Once you’ve removed some of your belongings from your house, you’ll feel like the square footage has increased. Other ways to help make rooms feel bigger and more spacious include moving furniture away from the wall a bit and placing chairs and couches out of walkways. Using a neutral color palette also helps open things up, per HGTV. Working with a professional interior designer can help determine what works best for your home.
Snap Photos at the Best Time(s) of Day
While preparing for the selling and staging process, snapping photos of your home may seem easy. Of course, there’s a reason why many realtors use professional photographers for their listings. As Coldwell Banker notes, nearly 92 percent of buyers shop for a home online, relying on photos to decide what properties to see. Therefore, the images of your home are crucial for its sales odds. Plus, you can share those gorgeous images on social media, too.
So, once your home looks perfect and you’re ready to put it on the market, hire a professional photographer to give your space the top-notch treatment it deserves. While you can take photos using your smartphone, nothing comes close to professional photography. Unless you have experience holding a camera, it’s best to leave this step to the experts.
While the most profitable home features include things like updated kitchens and home gyms, Realtor Magazine notes, staging is a huge benefit for nearly every property. And taking the time to prepare ahead of time can do wonders for your home’s hang time on the market. You may even net more for your home than the listing price with strategic staging.
Photo via Pixabay
Jumping into the housing market for the first time is exciting. The first step is deciding between buying a smaller property, such as a two-bedroom house or a condominium, that you can see yourself starting off in or purchasing a forever home that has everything you want. Before you decide, contact Central Oregon local realtor Daren Cullen and consider the pros and cons of each and keep the moving tips below in mind when you finally purchase your first property.
Pros of Buying a Starter Home
Dipping your toe into the housing pool with a starter home has many pros. The most attractive is affordability. You can buy a starter home with less capital and a shorter wait time. You also have less upkeep and lower property taxes. There is less commitment, which allows you to use the opportunity to see what it is like to own a home. When you are ready to purchase your forever home, you can use it for future income by renting it out.
Pros of Buying a Forever Home
There are some great reasons to jump right in and buy a forever home. If you have the financing, you can avoid moving again and put down your roots. This is a great option if you know that you are happy in your current location. If you are already thinking about expanding your family, you can purchase a larger forever home where your family will grow. You can also customize it however your like. Investing in big, personalized features is more reasonable with a forever home because you have no need to consider the resale potential.
The most obvious con for buying a starter home is the size. One study shows that the average American family no longer fits the nuclear family mold. Most people need roommates to make the cost of living more affordable. Additionally, starter homes often need more repairs, and without necessary repairs, you will likely find it more difficult to sell.
Cons of Buying a Forever Home
Forever homes are almost always more expensive than starter homes. It can be more difficult to obtain financing because lenders want to see well-established credit for larger loans and mortgages. A bigger house also equals more upkeep. Additionally, purchasing a new build for your forever home could take away from your return on investment. Remodels offer fast sweat equity, but a move-in-ready home typically needs only minor cosmetic changes.
Moving Tips You Can Apply to Either
Whether you decide on a starter or forever home, your next step after purchasing is to move. Without proper preparation, moving can become a significant stressor. The best stress-relieving option you have is to hire a moving company. Look for ‘local movers near me’ on Angi for easy vetting. Schedule a meeting to get a quote and talk about what you need and expect. Never go with the first moving company you find. Gather quotes, read reviews, and compare companies before you make a final decision. The most professional companies will conduct an in-home inspection to assess your needs and give you a more accurate quote.
Start your venture into the home-buying process with an honest evaluation of your finances and take that information to a realtor who can show you what is available in your price range. Plan ahead as much as you can, and remember to write down your expectations so you have a record of what you want and need from this process.
Image via Pexels
Tips and tricks for all things that revolve around your home.