What is happening with the market?
The spring real estate market has been busy! The sales volume of single-family homes has stayed remarkably consistent with previous years, despite lower inventory. And our area's average list and sales prices have surpassed $ 2 million for the first time ever!
But the real question on people’s minds is what to expect in the coming months.
There’s no cliff, but there is a shift. Here’s what we’re seeing as we wrap up summer and head into the fall.
Inventory remains low.
Inventory is slowly creeping up, but there are still an average of 30 units or less on the market in Wellesley, as compared to 140-160 at a time pre-pandemic. If you are thinking of selling, you have not missed the market! It's still a supply-and-demand game, and inventory will take a lot longer to get back to where it once was.
Inspections are back.
As the market experiences a bit of a correction, we see the return of inspection contingencies. Overall, this is a great thing! While sellers could get away with letting repairs and issues slide a year ago, that's no longer the case. Being proactive about home maintenance will help set you up for a smooth transaction.
Interest rates are climbing.
While there was a half percent drop in July, mortgage rates have increased over this time last year and are poised to continue. We see the combination of higher rates and higher home prices impacting buyers in one of two ways. Some are being entirely sidelined, while others are searching more urgently before mortgage rates climb higher.
Competition is less fierce.
Listings are getting fewer offers than earlier in the spring or last year. Some buyers are taking a summer break after resigning their lease agreements. Others are being more selective about where they invest their energy. So instead of a ten-offer bidding war, you may get 2-3 serious offers on an excellent property.
The bottom line? We feel like this market shift is good news on both sides of the table.
It is a better time to be a buyer, but still a great time to be a seller!
Are you or someone you know considering making a move? Get a comparative market analysis and advice on your specific situation.
July’s Top Three: Building Home Equity
Home equity has increased dramatically over the past two years for nearly every homeowner. If you are considering selling your house, home equity can cover all or a portion of the down payment on your next home. Here are three ways to increase the equity you have in your home:
1. Market-Driven Price Appreciation
Nearly every area has seen record appreciation over the past few years. As property values increase, so has the equity of most homeowners. Nothing to do here except continue making your monthly payments and hope that we avoid any future housing market crashes that could potentially impact the value you've built up.
2. Smart Home Upgrades
Investing in home updates with a high return on investment can be a smart strategy. Well-executed kitchen and bath remodels are typically good boosts to a home's value. Remember that if you do major work on your home, you must keep excellent records and prepare to pay the appropriate capital gains taxes.
3. Paying Down the Principal on Your Home Loan
Only a portion of your monthly mortgage payments goes toward your loan's principal, while the rest goes toward the loan's interest. Consider making additional payments towards the principal on your home loan if you can.
If you are curious about how much equity you have in your home, reach out anytime. I can help you understand the numbers and think through how you can use your equity to fuel your next home purchase.
We don't just help you buy or sell a house; we welcome you home!
Rutledge Properties is an independent, women-owned local real estate brokerage. We’ve been helping clients in the Metrowest area buy and sell their homes since 1978.
Because we are not part of a big, impersonal chain, we get to do things our way—and our way is all about you. Our clients are our neighbors, and we are committed to putting their needs first every time. We leverage our insider knowledge about the community, industry-leading technology, dynamic strategies, and our worldwide network to provide a level of service that keeps Rutledge clients keep coming back to us, move after move.
Contact us today to get a free market analysis or discuss your homebuying goals!