How will inflation effect my home price? And what’s happening in our market?... and… maybe the biggest apprehension of all… is it wise to list my house (which means I’d have to turn around and buy with these high prices) or should I just stay and or let my home appreciate !
1.How will inflation effect my home price? Well I hear people expressing concern that rising rates will impact the housing market --and cause the home sales to sharply decline. And this is raising big alarms. …Btw, Here’s the opportunity for you to drop your comments! I want to hear from you! Do you think this is the year to sell, do you think it’s wise to buy now before the increase? Or do you just think real estate is nuts right now,… let me hear from you in the comments. So I def understand these concerns myself as I have investments in real estate, however we need to take a look a what history says. So the first thing I’d like to share is the fact -that the value of your home rises with the inflation rate.. Since 1970’s when the US started tracking the inflation in relation to home value, the homes have almost always out tracked the inflation and has been the biggest hedge against the inflation for over 50 years! Our real estate is a tangible asset- unlike paper! Btw, IF you’re sitting on cash or paper, you definitely want to put it where it does not lose value—and I’d be happy to help you find some investment homes.
2. Lets address the apprehension of …deciding whether to Sell and move on….OR wait? Is it wise to list my house (which means I’d have to turn around and buy with these high prices) or should I just stay and or let my home appreciate This really is a big decision --with a few different directions you could take it --depending on your situation. It’s a common thought and has probably passed through most every owner’s mind. Before I share my opinion, let me first give you some data. So Here’s a quick update of market as of today. Market watch slide as you can see in Austin metro, we have only 354 new listings. Note the 69 actives that have had a price decreases- this is almost 20%-however we’re still looking strong on the listing side because 44% had price increases! We’ve currently got 334 actives under contract, 502 pending (this is likely from the surge we saw early in Jan) and currently 515 homes just closed. So what does this say? Well we know inventory is very low (under 3 weeks in most areas and at my listing presentation the other day, I was showing the inventory in their areas was currently only a week and a half supply) As you can imagine this is a real challenge for us in the industry to find enough homes for our buyers that are qualified and waiting! So again, back to our question, should we sell or wait for prices to go up further? Take a look at this data (listing down 28%) slide this tells you that its slim pickings--- soooo ..when the pickings are slim, there will be more demand for your home and has the potential for it to have multiple offers and for the price to be driven up. BUT you say, what about when I turn around and buy? Hold onto that thought for a moment and let’s talk about your Potential Appreciation if you just hold on to your home and wait it out Slide forecasts. Clearly this year the experts expect Nothing like last year! Fannie Mae projects on the High end of 7.6% (this the government backed loans where we see the most need for entry level homeowners) and at the lower end forecast is NAR (National Association of Realtors) that say 2.8% appreciation. So while this appreciation is nice, it’s not anything as substantial like past year.. also take a look at how pending sales fell 2% in the largest annual decline since Jan 2020. And how bout this quote(slide) from chief economist Taylor Marr that says by this summer the higher prices and rates will cause buyers to pull back---well from my perspective this indicates to list NOW before summer and before buyers pull back. Also as you can consider the Homebuyer Demand lessoning with the rates… well then what about if we add some of the Forbearance homes that have exited and that are still in trouble or on work outs or payment plans? This is almost 62% ..slide If some of these homes were added to inventory in addition to the rate increases wouldn’t that make sense to Lesson the demand even more? Also as you can see the rates have climbed slide to the highest point during the last 2 years.
So would you sell now if you have to also buy? Well, in my opinion if you would rather get into another home (as in you would like to down size, --or upside because you have adult children that have moved back in with you:-P I would say sell now while we are at a peak! …And also buy now while the rates are low, …establish yourself into your new home and ride it it for another growth cycle (you have traded up your investment to a larger investment and now you’re in a home you love… and one that that fits your needs.
3. How much needs to be done to my house before putting it on the market?
Some sellers think their home has to be perfect before it can go on the market, and the idea of getting it ready to sell can hold some seller back While it's true that certain updates can increase your sales price and shorten the amount of time it takes for your home to sell, most of the time there is less work than you would think.
Obviously before you would sell you would have advice from your Realtor to see how much work is truly needed. Many times, homebuyers do want a “move-in ready” property — (something that doesn’t require much work or repairs before moving in) and This is especially true of younger buyers, a move-in ready home is a must. So depending on the price point of your home, this will play a factor.
also, if you are consider repairs -say if bigger issues, like a damaged roof or poor running AC unit, you have a few options: 1. make the repairs and foot the bill yourself, 2. or adjust your price accordingly or 3. Coldwell banker has a RealVitalize program that allows you to get the repairs completed without any upfront cost and the contractors will get paid at closing. This program is a service to our clients and there no cost for using this program.
So there you have it! I hope you found this helpful! #susannagentryrealtor #susannasellsaustin #austinrealestatemarket #austinrealestate
Susanna Gentry Realtor 512.987.0475. 10900 Lakeline Mall Dr, Austin Tx 78717
Susanna Gentry Realtor, Coldwell Banker is a Seller Representative Specialist and Real Estate Negotiations Expert, Specializing in luxury single family homes in Round Rock, Cedar Park, Leander, Georgetown and Liberty Hill. North Austin; Williamson and Travis Counties. Susanna sells Austin, Austin realtor, real estate agent, Austin real estate, real estate investor