|We’ve entered a “New Normal” in Real Estate
Key indicators converge to show we’ve hit a “Sweet Spot”
and now is the best time to sell your Lake home
|March 31, 2022
With the COVID 19 era continuing, the uncertainty of the war in Ukraine, changes in working environments, temporary inflation, and expected increases in interest rates coming soon, 2022 is a year of transition for the economy and the housing market. Fannie May describes 2022 to be the emergence of a “New Normal” in real estate.
We at Team Jane Kelly have been watching these trends closely and have gathered information from a variety of expert sources, which we share here.
Our key assessment from all the pundit predictions and economic observations indicates that we’ve hit a “Sweet Spot” in the marketplace and there are many factors pointing to the conclusion that…
Now is the ideal time to sell at the Lake…
and if you’re on the fence, it’s time to jump into a strong seller’s
market to make tremendous gains from your real estate
But before going into the reasons for this conclusion, let’s look at how we got here and the forecast ahead.
2021 was a tremendous year
Fannie Mae reports:
“For housing, the past year's demand surge was driven by a combination of factors, including low mortgage rates, down payments supported by stimulus checks and other savings, a strong job market and a pandemic-driven reshuffling of preferences.”
And CNN reports:
“Homeowners saw average home prices skyrocket nearly 20% through the third quarter (of 2021) compared to a year ago, according to the Federal Housing Finance Agency. It was the largest annual home price increase in the history of the agency's House Price Index. And, in some hot markets, the price increase was double that.
Homes also sold at a record pace, with sellers often fielding multiple competing bids and all-cash offers. “
And Zillow confirms this data:
“2021 was a record-breaking year for the US housing market. According to Zillow, home prices continued to rise month after month. Home values increased between 25% and 33% This is more than double the growth experienced by housing prices over the two years from 2017 to 2019.”
Demand is tremendous and growth is expected to continue, but not as much as in the recent past
For now, expectations for growth continue.
This is fueled by an extreme demand for properties now. There simply aren’t enough homes to sell to prospective buyers. It is a seller’s market due to demand outpacing supply.
Based on what real estate pros are saying, current trends and the forecast for the next 12 to 24 months show that the housing market is expected to stay robust.
Home values are expected to increase but may slow by late Summer or Fall of 2022.
Fannie Mae expects growth to continue but decelerate gradually.
The window may be closing…slowly
Though less than a third of a possibility, Goldman Sachs says a possible recession could factor into spending power.
While the uncertainty of the Ukraine War has temporarily steadied the current boon in real estate, the Fed has been clear that interest rates are going to go up. This was expected to begin already, but the War in Ukraine has delayed that according to Freddie Mac (mortgages fell from 3.89% to 3.76% in the week following the invasion.)
But progressively higher interest rate hikes are expected throughout 2022.
Increasing interest rates will almost certainly have greater impact on the housing market, and Freddie Mac anticipates some cooling in housing demand as this occurs.
And, according to Redfin, the global uncertainty of the war is expected to lead to investors moving out of stocks to government bonds, generally considered to be much safer ways to hold on to assets.
Those bond rates are closely tied to interest rates of mortgage lenders so when bond rates rise, so do mortgage interest rates.
Rising interest rates will increase the difficulty for potential buyers as affordability becomes a factor and some drop out of the market for new homes.
What does this all mean moving forward?
Essentially, we are in a “Sweet Spot” to cash in on opportunities to get the highest value for your real estate property at the Lake of the Ozarks…
Nobody has a crystal ball that can tell the future.
It’s always best to act sooner rather than later when selling a home as you have a better idea of what’s happening in the current environment and how it will affect your current situation.
And right now, indicators point to an ideal environment to take advantage of a red-hot market to sell your Lake home this Spring/Summer.
We’ve hit a “Sweet Spot.”
Team Jane Kelly has had fantastic success over the past several years helping many clients with their real estate needs.
How can we help you create that kind of success in 2022?
Contact us at 573-302-2316 or email firstname.lastname@example.org to arrange a free valuation to see what your home could be worth and to get all your questions answered.
Article sources: Fannie Mae, Zillow, Redfin, Realtor.com, CNN, Insidesalespredictability.com, Freddie Mac, Goldman Sachs
|DISCLAIMER: The following is for informational purposes only. It is not intended to give financial or property advice.|