March 2022 Market Update

For me, the word of the month is ‘strategize’…and that’s because the real estate market is moving fast and furiously. If you don’t have a strategy, you will not be adequately positioned as a seller or a buyer. If you are a seller, do you fix up your house or just list it in its current condition? Do you price it low and hope for multiple offers? Do you price it at market and expect a few offers – or maybe just one? Or do you price it high and hope a frustrated buyer is willing to pay any price?

If you are a buyer – do you use an escalation clause? Do you waive all contingencies? Do you offer a free Post Settlement Occupancy Agreement? Do you want to add an appraisal gap statement? Do you take it “as is”? So many questions need to be addressed; each situation is different and should be analyzed individually. The good news is that I have the answers for you, whether you are looking to sell or buy in today’s market, who you work with matters!

As you know, not every house will sell just because of the market. You still need to have the right strategy to get it sold. On the flip side, a strong offer can position you to win over multiple other contracts with the right strategy, so call me to discuss your situation in more detail. I am always here to help.

I am getting many real estate-related questions lately – will the rising interest rates hurt the market? Will the market be impacted by the Feds increasing their rates overnight? Will the Ukraine situation slow down the real estate market? Will rising gas prices impact real estate? How does rising inflation affect the real estate market? So many good questions. Here are the answers – at least the ones I have today. Mortgage interest rates remain at historic lows, and as a matter of fact, they are below where they were before the pandemic started. Mortgage rates would have to get to the 6% range before they began to impact the market, and the government won’t let this happen. Presently, rates are at 3.75% for conforming loans – a reasonable rate, in my opinion. The Fed rate increases do not directly impact mortgage rates, so this will not be a considerable influence. Rising gas prices may hinder a few first-time buyers from entering the market (they are budget-conscious overall), but this will not slow down home buying demand. Inflation may hinder some people from buying, but in the end, it won’t affect our market. We are receiving multiple offers across all price points, so we will still have a robust real estate market even if half the buyers drop out. Lastly, if it gets worse, the situation in Ukraine may impact housing. At this time, it is helping to bring rates down, but it hasn’t slowed demand or slowed price appreciation. Only time will tell, but all is good on our real estate front right now.

There are many scenarios and questions out there but know that I am here to help answer them. Just give me a call to discuss everything with you!

Happy St. Patrick’s Day!

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