Even with today’s growing home price appreciation, homeownership is still affordable. Let’s connect to make your homeownership goals a reality.
Fall is quickly approaching and it could pose the perfect opportunity to sell your home. There is no doubt that we are in a seller’s market. Homes are selling at record speeds for top dollar, but it won’t last forever. Keep reading to learn our top five reasons to put your house on the market this Fall.
Your House Will Likely Sell Quickly
Average days on market is a strong indicator of buyer demand. Currently, properties are spending a short amount of time on the market, which is a good indicator that your home could sell just as quickly.
Not only are homes selling quickly, but they are also seeing multiple offers. Buyers are coming prepared with the best offer in hand because they know that bidding wars are a likely outcome. Multi offer situations can put the seller in a great financial position.
Inventory is Low
Motivated buyers are challenged with the low housing supply. When inventory is low and demand is high, then your house takes center stage. This sets you up for success by drawing more attention to your home. Now is the time to take advantage of the low inventory before the supply starts to increase.
Competition is driving up the price and causing home price appreciation to rise. As the home’s value appreciates, equity will also increase. This is good news for sellers because the increasing value of your home can give you more money in your pocket to upgrade.
Low Mortgage Rates
Buyers are motivated to purchase thanks to the record low mortgage rates. Throughout 2021 mortgage rates have been low, however, the hot housing market and accelerating inflation point to a probable rise in interest rates by the end of the year. Now is the time for homeowners to take advantage of the rates and lock in unprecedented savings.
Seller’s markets won’t last forever so act now. If you are interested in selling your home contact Mo Hadid with Quest Real Estate today! Click here to discover what your home could be worth today.
One of the major story lines over the last year is how well the residential real estate market performed. One key metric in the spotlight is home price appreciation. According to the latest indices, home prices are skyrocketing this year.
Here are the latest percentages showing the year-over-year increase in home price appreciation:
The dramatic increases are seen at every price point and in all regions of the country.
According to the latest Home Price Index from CoreLogic, each price range is seeing at least a 19% increase year-over-year:
Every region in the country is experiencing at least a 14.9% increase in home price appreciation, according to the Federal Housing Finance Agency (FHFA):
According to the U.S. National Home Price Index from S&P Case-Shiller, every major metro is seeing at least a 13.3% growth in prices (see graph below):
Prices are the result of the balance between supply and demand. The demand for single-family homes has been strong over the last 18 months. The supply of houses available for sale was near historic lows. However, there’s some good news on the supply side. Realtor.com reports:
“432,000 new listings hit the national housing market in August, an increase of 18,000 over last year.”
There will, however, still be a shortage of supply compared to demand in 2022. CoreLogic reveals:
“Given the widespread demand and considering the number of standalone homes built during the past decade, the single-family market is estimated to be undersupplied by 4.35 million units by 2022.”
Yet, most forecasts call for home price appreciation to moderate in 2022. The Home Price Expectation Survey, a survey of over 100 economists, investment strategists, and housing market analysts, calls for a 5.12% appreciation level next year. Here are the 2022 home appreciation forecasts from the four other major entities:
Price appreciation is expected to slow in 2022 when compared to the record highs of 2021. However, it is still expected to be greater than the annual average of 4.1% over the last 25 years.
If you owned a home over the past year, you’ve seen your household wealth grow substantially, and you’ll see another nice boost in 2022. If you’re thinking of buying, consider buying now as prices are forecast to continue increasing through at least next year.
In today’s market, home prices are naturally rising due to low supply and high demand. Home prices are appreciating at near-historic rates, which is creating some difficulties when it comes to home appraisals. An appraisal determines the fair market value of a home. It’s becoming increasingly common for an appraisal to come in below the contract price on the house. The appraisal gap is the difference between the appraisal and the price a buyer is willing to pay.
Appraisal gaps are caused by heightened buyer demand when purchasers are willing to pay over asking to secure the home. Homebuyers may be willing to pay more, but the appraisers are there to assess the market value of the home. When the appraiser comes in, they look at things more objectively compared to an emotional homebuyer. Their goal is to make sure the lender isn’t loaning more money than the home is worth.
In a highly competitive market like today’s, having an inconsistency between the two numbers isn’t surprising. See the graph below for the increasing rate of appraisal gaps, according to data from CoreLogic:
With the increasing rate of appraisal gaps, what do you do? The best thing you can do is understand how an appraisal gap may impact your transaction. When selling, you may encounter an appraisal below your contract price. In today’s seller’s market, the most common approach is for the seller to ask the buyer to make up the difference in price. Buyers need to be prepared to bring extra money to the table if they really want the home. Whether you are buying or selling, contact Quest Real Estate for help navigating an appraisal gap. We will help you understand your options for the best outcome.
Today, home prices are appreciating at an above normal rate due to high demand. High competition between buyers is leading to bidding wars and over asking price offers. Your house could be worth more than you realize. Let’s take a deeper look into home price appreciation.
Home price appreciation is the increase in the value of a real estate property over a period of time. The price appreciation increases your home equity. Equity is the difference between what you owe on the home and its market value based on factors like price appreciation. You can use your equity to power your next move or put the money toward funding other dreams.
Here are some of the most important factors that increase property’s appreciation.
List your home soon to ensure you benefit from the current higher than average home price appreciation. Contact Quest Real Estate to learn more about your current property value.
Home prices have increased significantly over the last year. This is good news for sellers who want to maximize their investment. The demand is strong, which is causing bidding wars and over asking price offers. When property appreciates, so does the homeowner’s equity, meaning more money in your pocket after selling. Homeowners see their property value increasing at record rates, but how long will we see this trend?
Current home prices aren’t declining anytime soon, but prices will likely appreciate at a slower pace by the end of the year. In general, factors that impact a property’s appreciation include market conditions, home improvements, location, and interest rates. Many of these factors are in the homeowner’s favor. Sacramento market conditions show buyer demand high and home inventory low, which is contributing to increasing home value. That means selling your house today could really pay off.
If you are interested in selling your home contact Quest Real Estate today! Click below to discover what your home could be worth today.