Monthly Market Update | November 2021
Dec 5 1 minutes read If you’re thinking about selling your home, it's important to have a good understanding of what’s going on in the market. Knowing the most important data such as the average sales price, number of homes sold, and days on market will better prepare you to sell your home. Our market report showcases everything you need to know about local real estate trends. 1.6% ↓ From Last Month Active Listings 4,549 Under Contract 4,200 Property Sales Homes Sold 100% Sale-to-List Price $581,000 Average Sales Price 1.1 Months of Supply 19 Average Days on Market $314 Average Price per Square Foot
2022 Real Estate Predictions: What to Expect From the Market
When the COVID-19 outbreak took the world by storm in March 2020, there were many uncertainties. With all the chaos and unknowns, few could have predicted that the pandemic would ultimately spur one of the most competitive and tight housing markets in both U.S. and Canadian history. Between August 2020 and August 2021, home prices across the United States and Canada rose to record levels, with the U.S. housing market rising to a record of 19.9% and the Canadian housing market rising to a record 21.4%. While these prices have been a home seller's dream, it has also made buying a home much more difficult over the past year and a half. So, what can home sellers and home buyers expect to move in 2022? Will the market continue to rise, stay the same, or finally see a steady decline? Read on to discover more about all the predictions for the 2022 real estate market. Will the 2022 Real Estate Market Run Bullish or Bearish? When it comes to predicting markets, you will always have experts on both sides of the discussion. So while some experts are predicting a bullish outlook for the 2022 real estate market where home prices continue to rise, others are predicting a bearish outlook where home prices will start to trend down. Of course, with home prices hitting record levels of growth, even faster than that experienced in the run-up to the 2008 financial crisis, the current market will not be sustainable forever. However, the question is not if the market will trend down, but when. Will the real estate market come to a crashing halt in 2022, or will it slow gradually? Check out all the expert predictions regarding the 2022 real estate market below. Will Home Prices Rise, Fall, or Stay Steady in 2022? While there are many predictions regarding the 2022 real estate market, the general consensus is that the market will cool off in both the United States and Canada, but not by much. Fannie Mae predicts that the medium home prices will see a rise of around 7.9% between the fourth quarter of 2021 and the fourth quarter of 2022. While this would mark a fall in the current price growth of the market, it would still represent a strong growth by historical standards of the real estate market. Ultimately, Fannie Mae's predictions have the housing market returning to steady levels of price appreciation. In comparison to Fannie Mae's outlook on the 2022 real estate market, Zillow and Goldman Sachs are forecasting a much more bullish run while CoreLogic has put out a bearish prediction. Zillow has predicted home prices jumping 13.6% and Goldman Sachs even higher with a prediction of 16%. While Zillow and Goldman Sachs are seeing a world where home prices soar in 2022, the real estate data firm CoreLogic is predicting only a small 2.2% home price growth in the coming year. Ultimately, it looks like the 2022 real estate market will still strongly favor home sellers rather than home buyers. The supply of homes for sale is near record lows, and the gap between supply and demand is only widening. However, with the right real estate agent, finding a new home in 2022 is still certainly possible.
How to Navigate the Shifting Housing Market
It's undeniable that the real estate market has been hot over the last couple of years, with low inventory across the boards and high competition among buyers. However, the market now seems to be making a shift. After three years, the inventory of homes for sale has finally increased for the first time since June 2019, with newly listed homes up 6.3% nationally compared to a year ago. While sellers are still listing at rates 6.4% lower than the pre-pandemic years from 2017 to 2019, the market is in the process of making major shifts. It's still a seller's market right now, but for how much longer? As a first-time homebuyer or even a seasoned homebuyer, it's important to keep up with the shifting market trends in order to secure a successful transaction. Read on to learn more about the shifting real estate market and discover how to better navigate these changes. What Does the Shifting Market Look Like? In May 2022, Realtor.com released some housing data that revealed some major turning points in the market. In terms of inventory, the data shows that the number of active home listings entering the market is higher than it's been since 2019. Nationally, the inventory of active home listings has increased by 8% over the past year, amounting to 38,000 more active home listings compared to May 2021. While having more homes on the market is good for buyers, homes are still spending less time on the market compared to last year, and home prices are still rising. The market is definitely shifting, but not necessarily in a buyer's favor just yet. Interest rates are continuing to rise. These rising interest rates coupled with all-time high listing prices have increased the cost of financing 80% of the typical home by 48% compared to a year ago. In addition to rising prices, newly listed homes are larger. In May 2022, the share of newly listed homes less than 1,750 square feet declined from around 47% to around 45%. In comparison, the share of newly listed homes more than 1,750 square feet increased from around 52% to around 54%. This may cause frustration for first-time homebuyers because while more homes are being listed on the market, many are larger and more expensive. For example, the national median listing price for active listings in May 2022 was $447,000. This is up 17.6% compared to May 2021 and up 35.4% compared to May 2020. Tips for Navigating Market Shifts as a Buyer In addition to partnering with a local, expert real estate agent, utilizing the following tips can help first-time homebuyers better navigate continued market shifts. Know Your Budget With rising mortgage rates and increased home prices, it's essential to do your homework and plan what you can truly afford in advance. In a seller's market, you should be prepared to pay the asking price. However, it is essential that you make buying decisions based on your finances and not on your emotions. Just because you can financially afford to pay over the market value of a home doesn't mean that you should or that it's in your best interest over the long term. Get Preapproval From a Trusted Lender Along with having a thorough understanding of your budget before buying a home, you should obtain a preapproved loan with a trusted lender. Getting a preapproved loan signals sellers that you are a serious buyer, and it may even gain you access to earlier showings ahead of other buyers. Be Flexible and Patient A final tip for first-time homebuyers navigating today's market shifts is to be flexible and patient. There will undoubtedly be ups and down on your homebuying journey, especially with today's market and continued market shifts. While there will be ups and downs, just remember that buying a home is still within reach, and when in doubt, always reach out to a local, expert real estate agent for help. Tips for Navigating Market Shifts as a Seller While the market is shifting, it's still an ideal time for sellers. The following tips will help you get the most out of your home selling experience. Work With a Trusted Local Real Estate Agent Even during a seller's market, it's important to work with a local expert real estate agent when listing your house. A local real estate agent will be able to give you the most up-to-date information on the market, navigate stressful contracts, and help you get the best price for your property. Have a Pre-Inspection Before Putting Your Home on the Market In addition to working closely with a local real estate agent, it would be to your benefit to have a pre-inspection completed on your home before you list it on the market. Having a pre-inspection can save you a ton of time, headaches, or delays down the road.
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