Does the latest news about the housing market have you questioning your plans to sell your house? If so, perspective is key. Here are some of the ways a trusted real estate professional can explain the shift that’s happening today and why it’s still a sellers’ market even during the cooldown.

Fewer Homes for Sale than Pre-Pandemic

While the supply of homes available for sale has increased this year compared to last, we’re still nowhere near what’s considered a balanced market. A recent article from Calculated Risk helps put this year’s increased inventory into context (see graph below):

It shows supply this year has surpassed 2021 levels by over 30%. But the further back you look, the more you’ll understand the big picture. Compared to 2020, we’re just barely above the level of inventory we saw then. And if you go all the way back to 2019, the last normal year in real estate, we’re roughly 40% below the housing supply we had at that time.

Why does this matter to you? When inventory is low, there is still demand for your house because there just aren’t enough homes available for sale.

Homes Are Still Selling Faster Than More Normal Years

And while homes aren’t selling as quickly as they did a few months ago, the average number of days on the market is still well below pre-pandemic norms – in large part because inventory is so low. The graph below uses data from the Realtors’ Confidence Index by the National Association of Realtors (NAR) to illustrate this trend:

As the graph shows, the pre-pandemic numbers (shown in blue) are higher than the numbers we saw during the pandemic (shown in green). That’s because the average days on the market started to decrease as homes sold at record pace during the pandemic. Most recently, due to the cooldown in the housing market, the average days on the market have started to tick back up slightly (shown in orange) but are still far below the pre-pandemic norm.

What does this mean for you? While it may not be as fast as it was a couple of months ago, homes are still selling much faster than they did in more normal, pre-pandemic years. And if you price it right, your home could still go under contract quickly.

Buyer Demand Has Moderated and Is Now in Line with More Typical Years

Buyer demand has softened this year in response to rising mortgage rates. But again, perspective is key. Getting 3-5 offers like sellers did during the pandemic isn’t the norm. The graph below uses data from NAR going back to 2018 to help tell the story of this shift over time (see graph below):

Prior to the pandemic, it was typical for homes sold to see roughly 2-2.5 offers (shown in blue). As the market heated up during the pandemic, the average number of offers skyrocketed as record-low mortgage rates drove up demand (shown in green). But most recently, the number of offers on homes sold today (shown in orange) has started to return to pre-pandemic levels as the market cools from the frenzy.

What’s the takeaway for you? Buyer demand has moderated from the pandemic peak, but it hasn’t disappeared. The buyers are still out there, and if you price your house at current market value, you’ll still be able sell your house today.

Bottom Line

If you have questions about selling your house in today’s housing market, talk to a trusted real estate professional. An agent can help provide context around what’s happening now, so you’re up to date on what you can expect when you’re ready to move.

Source: Keeping Current Matters

Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com

From the first change of color in the foliage to the fragrance of home-baked pie, fall offers a lot to look forward to. The kids are back in school, holidays are around the corner, spiced lattes are the rage, and it is finally sweater weather. To enjoy the season to the fullest, it is important to maximize the coziness factor in your home. Read on for fall home décor ideas and tips!

Create a Color Palette

The vibrant colors and changing leaves are some of the best things about fall, and you can use these colors to inspire your home decor. Red, orange, and yellow create a lovely balance with brown and gold, and green and purple provide contrast. On a gloomy winter day, neutral tones and shades of cream brighten up the space.

Add Scents

Scented candles add a nice touch to a table arrangement, and scent diffusers fill your home with comforting aromas while adding a stylish flair. Pumpkin spice and apple cinnamon are just a few fall favorites. Vanilla is timeless aroma, and clove adds a touch of spice to the air.

Swap Out Your Throw Pillows

Small changes to your home can make it feel brand new. Changing your throw pillows is a simple and low-cost way to freshen up your home décor. Use your color palette to bring a fresh and vibrant feel to your bedroom or reading nook.

Freshen Up Bedding

Frigid temperatures are all the reason you need to liven your bedroom up with new bedding. Neutral colors such as cream or white will stay stylish all year long, or you can use purple or red tones to make the space pop.

Use Faux Fur & Heavy Knits

A good throw blanket with a heavy fabric and texture is a must-have for any living space when the temperatures drop. Use a faux fur or heavy knit blanket to make the space feel warmer. Drape it over a sofa or armchair, fold at the foot of the bed, or curl up with it while you enjoy a steamy, hot beverage.

Makeover the Mantel

A mantel display is a creative way to bring fall inspiration to your home. Use faux gourds, corn husks, and apples for a traditional look. Birch bark, pinecones, acorns, and autumn foliage add a rustic design to the space. You can also add lanterns and string lights to illuminate the room.

Create a Fall Floral Arrangement

Create an arrangement inspired by fall colors with faux florals to brighten your home. Compliment orange and white pumpkins or red fall leaves with green foliage. Dried grass, branches, and wheat are tasteful additions to balance the arrangement.

Display the Harvest Bounty

Fall is traditionally the time to celebrate the bounty of a harvest. Fill a bowl with small pumpkins, apples, citrus, or artichokes and use it as a centerpiece for your dining room table, coffee table, our kitchen counter.

Create a Reading Nook

A reading nook offers a peaceful place in your home for rest and reflection during the hustle and bustle of the holidays. All you need is a comfy armchair, end table, a reading lamp, and a stack of must-read books. Add a scented candle or diffuser to awaken the senses.

Go Green

Green is the ideal color to compliment the reds, oranges, and yellows of fall décor. Pair decorative gourds with potted kale on the front porch and succulents throughout the home to add a verdant touch to your home décor.

Decorate the Front Porch

Pumpkins aren’t just for carving out Halloween jack ‘o lanterns. You can enjoy gourd season through November by decorating your front steps and porch. Lanterns lining your walkway create a warm and welcoming atmosphere.

Hang a Wreath

Hanging a wreath on your door is a classic way to celebrate the holiday spirit. Pine needles are always a favorite, or you can choose dried flowers or faux foliage to create a rustic feel.

Decorate the Foyer

Your home’s foyer is the first thing your guests see when you welcome them into your home. Celebrate the time of year and decorate a table with pumpkins, foliage, or floral arrangements.

Add Flowers

Just because it is autumn doesn’t mean you can’t enjoy a beautiful array of flowers. Fall is the perfect time for sunflowers, mums, orchids, and poppies.

Whether your home is the hot spot for holiday parties or a private sanctuary, these fall home decor tips will make it a cozy dream home!

Source: Realty Executives

 Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com

If you’re following today’s housing market, you know two of the top issues consumers face are inflation and mortgage rates. Let’s take a look at each one.

Inflation and the Housing Market

This year, inflation reached a high not seen in forty years. For the average consumer, you probably felt the pinch at the gas pump and in the grocery store. It may have even impacted your ability to save money to buy a home.

While the Federal Reserve is working hard to lower inflation, the August data shows the inflation rate was still higher than expected. This news impacted the stock market and fueled conversations about a recession. It also played a role in the Federal Reserve’s decision to raise the Federal Funds Rate last week. As Bankrate says:

“. . . the Fed has raised rates again, announcing yet another three-quarter-point hike on September 21 . . . The hikes are designed to cool an economy that has been on fire. . .”

While their actions don’t directly dictate what happens with mortgage rates, their decisions have contributed to the intentional cooldown in the housing market. A recent article from Fortune explains:

“As the Federal Reserve moved into inflation-fighting mode, financial markets quickly put upward pressure on mortgage rates. Those elevated mortgage rates . . . coupled with sky-high home prices, threw cold water onto the housing boom.”

The Impact on Rising Mortgage Rates

Over the past few months, mortgage rates have fluctuated in light of growing economic pressures. Most recently, the average 30-year fixed mortgage rate according to Freddie Mac ticked above 6% for the first time in well over a decade (see graph below):

The mortgage rate increases this year are the big reason buyer demand has pulled back in recent months. Basically, as rates (and home prices) rose, so did the cost of buying a home. That pushed on affordability and priced some buyers out of the market, so home sales slowed and the inventory of homes for sale grew as a result.

Where Experts Say Rates and Inflation Will Go from Here

Moving forward, both of these factors will continue to impact the housing market. A recent article from CNET puts the relationship between inflation and mortgage rates in simple terms:

“As a general rule, when inflation is low, mortgage rates tend to be lower. When inflation is high, rates tend to be higher.”

Sam Khater, Chief Economist at Freddie Mac, has this to say about where rates may go from here:

“Mortgage rates remained volatile due to the tug of war between inflationary pressures and a clear slowdown in economic growth. The high uncertainty surrounding inflation and other factors will likely cause rates to remain variable, . . .”

While there’s no way to say with certainty where mortgage rates will go from here, there is something you can do to stay informed, and that’s connect with a trusted real estate advisor. They keep their pulse on what’s happening today and help you understand what the experts are projecting. They can provide you with the best advice possible.

Bottom Line

Rising inflation and higher mortgage rates have had a clear impact on housing. For expert insights on the latest trends in the housing market and what they mean for you, lean on a trusted real estate professional.

Source: Keeping Current matters

Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com

If you’re thinking about buying a home today, there’s welcome news. Even though it’s still a sellers’ market, it’s a more moderate sellers’ market than last year. And the days of feeling like you may need to waive contingencies or pay drastically over asking price to get your offer considered may be coming to a close.

Today, you should have less competition and more negotiating power as a buyer. That’s because the intensity of buyer demand and bidding wars is easing this year. So, if bidding wars were the biggest factor that had you sitting on the sidelines, here are two trends that may be just what you need to re-enter the market.

1. The Return of Contingencies

Over the last two years, more buyers were willing to skip important steps in the homebuying process, like the appraisal or inspection, to try to win a bidding war. But now, fewer people are waiving the inspection and appraisal.

The latest data from the National Association of Realtors (NAR) shows the percentage of buyers waiving their home inspection and appraisal is declining. And a recent survey from realtor.com confirms more sellers are accepting offers that include these conditions today. According to their August study:

• 95% of sellers reported buyers requested a home inspection
• 67% of sellers negotiated with buyers on repairs as a result of the inspection findings

This goes to show buyers are more able to include these conditions in their offers today and negotiate as needed based on the outcome of the inspection.

2. Sellers Are More Willing To Help with Closing Costs

Generally, closing costs range between 2% and 5% of the purchase price for the home. Before the pandemic, it was a common negotiation tactic for sellers to cover some of the buyer’s closing costs to sweeten the deal. This didn’t happen as much during the peak buyer frenzy over the past two years.

Today, as the market shifts and demand slows, data from realtor.com suggests this is making a comeback. A recent article shows 32% of sellers paid some or all of their buyer’s closing costs. This may be a negotiation tool you’ll see as you go to purchase a home. Just keep in mind, limits on closing cost credits are set by your lender and can vary by state and loan type. Work closely with your loan advisor to understand how much a seller can contribute to closing costs in your area.

Bottom Line

Regardless of the extremely competitive housing market of the past several years, today’s data suggests negotiations are starting to come back on the table. This is good news if you’re planning to enter the housing market. To find out how the market is shifting in your area, connect with your local real estate advisor today.

Source: Keeping Current Matters

Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com