This is the time of year where real estate and finance professionals take stock of the year behind us and prepare to address future predictions. As we look ahead at the real estate predictions for 2022, we see the writing on the wall: “The Seller’s Market is slowly coming to an end.”
(Click Here to read about the difference between a buyer’s market and a seller’s market).
As we all know, “what comes up must come down.” As real estate agents, it’s our job to know when the market is peaking to prepare sellers and support buyers.
Current data from industry insiders and experts read something like this:
“While the housing market is still hot, there are signs that it’s beginning to cool off, with housing inventory (the number of homes on the market) starting to ‘meaningfully recover…'” (Fortune.com)
AND
“Recent reports have offered a glimmer of hope for buyers in the U.S. These reports have shown an increase in the number of houses for sale, along with a general cooling trend within the housing market.” (Home Buyers Institute)
So, what does this mean for you as a buyer or a seller?
Sellers Should Revisit Pricing and Inventory
If you are currently selling your home, it might be time to check in with your real estate agent.
Experts predict our seller’s market is coming to an end, but it will be a slow transition. Read to learn more about how to take advantage of the 2022 market.
Buyers may begin holding off on house hunting, waiting to see what happens. That said, plenty of experts out there feel current home pricing is here to stay for a while or may continue to go up in desirable markets such as DeLand’s. So if you aren’t in a hurry to sell your home and feel it’s priced well, your agent will probably encourage you to remain patient and see what happens.
Look at comparable prices
Pay attention to the homes that are moving in your area. Compare them to yours, look at the ads, and see if the prices are comparable. If you see homes that are similar to yours selling for comparable or higher prices, your best move is to hang in there. Odds are you’ll get the price you want.
If, however, you notice home prices are dropping here and there, you might need to do the same unless your home has more desirable features that warrant a higher price tag.
Read, Three Questions to Ask Your Realtor Before Dropping Your Home’s Listing Price to determine whether that should be your next move or not.
Evaluate local inventory
How many homes are for sale in your neighborhood and local community? For the past couple of years, the DeLand area’s “Sold” signs have gone up almost as quickly as “For Sale” signs, with many homes selling in 45 days or less. If that seems to be the same where you’re at, there’s no need for concern.
If, however, you notice more for sale signs than usual – or you’ve noticed a comparable house a few blocks over hasn’t sold in 90+ days – it’s worth taking note. The housing market operates on the economic principles of supply and demand – the bigger the supply, the harder it is to move inventory.
Also, make sure you’ve done all you can to prepare your home, so it is as appealing as possible to prospective buyers.
Make sure you hired the right real estate agent
Not all realtors are created equal. You are not obligated to continue working with an agent who isn’t doing all they can to sell your home. In our post, Choose the Right Real Estate Agent to Sell Your DeLand Home, we mention the things to look for (and the questions to ask) when selecting an experienced agent.
In addition to current licensure and membership in industry-recognized organizations, your agent should:
- Have an impressive list of sold comps for three years or more
- Provide you with a Comparative Market Analysis to help you make sound decisions around improvements, pricing, or buyer incentives
- Demonstrate a stellar marketing track record
Finally, we always advocate honoring your instincts. If you get the feeling your agent isn’t doing all they can for you, or you notice someone else’s agent is doing a better job, schedule a meeting and determine whether it’s time to look for someone new.
Buyers May Want to Hold Tight
Yes, we may indeed be on the cusp of bidding farewell to a longstanding seller’s market. That said, you may want to hold on and see if it comes to fruition. While experts predict the market is beginning to cool and that inventory is on the rise, our minds aren’t made up just yet.
Our area is highly desirable for folks who want to work from home and enjoy a year-round indoor/outdoor lifestyle to accommodate social distancing, distance learning, and pandemic quarantine mandates. We’ve also seen an influx of out-of-state buyers who are interested in the vacation home market, and that pads real estate markets like ours. And, DeLand homes make great investment properties (see below).
Time to find the right buyer’s agent
Instead of jumping on the first potential decrease in home prices, spend some time looking for an exceptional agent. As you wait to see what’s going to happen (no predictions are 100% guaranteed), take time to interview three to five prospective realtors and choose the one who feels like the best fit.
Use the next couple of months to hone in on what you want. An experienced agent can listen to what you want, assess good-fit properties, and tell you whether you should act now or press pause before making an offer.
Consider the benefits of low-interest rates
Regardless of what the real estate market does, we are in a record low-interest rate streak. For example, consider this recent statement from bankrate.com:
The Federal Reserve signaled on Wednesday that a rate hike could now be warranted as early as next year and that it’s about to reduce how many bonds it’s buying each month.
This is another topic worth digging into with your agent. Yes, prices may begin to inch down, but they aren’t going to plummet. If interest rates go up, buying now is a better investment because lower interest rates buffet a higher sales price. If interest rates go up by 1.5% or more (as predicted), that could mean paying more over the lifetime of your home loan, despite lower sales prices.
Factor in rent and vacation home potential
Rents are predicted to trend upwards, and vacation rental incomes continue to soar as well. So this is still a good time for investors to buy a turnkey property, knowing the combination of current low-interest rates and higher rents/income potential are on your side.
Are you unsure about 2022 real estate predictions and whether to buy or sell? Contact Southern Exclusive Realty for instant access to expert real estate agents who can steer you in the right direction.
