I am here to help sort through the noise and give you the best information I have so you can be successful. Here are the KEY things you should know in March 2022 about the local real estate markets.
Being a buyer or seller right now can feel like pure insanity. On the buy side, you are stuck with a very difficult market to navigate. Supply shortages, bidding wars, and rising prices are constant factors. On the selling side there’s a shit TON of FOMO (fear of missing out), which is leading to unrealistic expectations and massive amounts of overpricing, miscalculations, and inefficiencies. Remember, no 2 homes are the same and neither are 2 moments in time. Just because your friend down the street received 10 offers and sold $100k above asking does not mean your (different) home, at a different period of time and price, will receive the exact same treatment. Many (different) factors went into the outcome of that sale. So what to do if you’re looking to buy or sell in this crazy-making market?
MORTGAGE RATES ARE GOING UP ^
-A week ago, economists projected mortgage rates would reach 4% toward the year-end. Now, the rate on the 30-year fixed home loan is just a whisper from that threshold, hitting 3.92% in late February.
That’s up from 3.69% from last week, and the highest rate recorded since May 2019. Since the beginning of the year, the rate has jumped more than three-quarters of a point on increased expectations that the Federal Reserve will make moves soon to beat back runaway inflation. Rates are in the 4%+ range for many buyers already. In the DMV home prices are already expensive, so a small change in mortgage rates could have a sizable impact on the extra dollars that you will need to spend.
Timing:
-The Spring market is here. Sellers – this is your moment to get the most money possible. More homes will sell between now and June 30th than will the rest of the year. Take advantage of the opportunity NOW if you are selling in 2022. Buyers, more homes will come to market in the coming months than will the rest of the year. With rates going up, NOW is your time to lock something down. You’ll have more options and (likely) best rates to choose from all year.
Tips for success:
SELLERS: Mind the details. Just because homes in your community are selling quicker than ever does not mean you will get the best deal possible when you sell, unless you prepare for success. I often see sellers cutting corners and literally paying for it when they don’t get that TOP dollar price, or lose out on a possible multiple offer situation. Preparing for success means decluttering the space, fixing damage and wear and tear, giving the home a deep cleaning, making it easy to show, and staging empty rooms. Do it all and often and allow the good times to roll.
BUYERS: Don’t lose the property over small things. If a seller has the opportunity to sell their home to multiple buyers, your offer has to stand out from the rest. If you believe you’ve found your next home, pre inspect before making an offer so you can waive the inspections and stand out. Get with the lender about how to shorten or remove your financing contingencies so you can stand out. Beyond price these details will make a HUGE difference to the seller and help you STAND OUT! The name of the game as a buyer in today’s market is to reduce friction wherever possible so the seller is most inclined to accept your offer.