Staying Fit
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The seas have been choppy for the real estate market these past 18 months. Mortgage interest rates have risen, then fallen, then risen again. According to statistics compiled by Freddie Mac1, we’ve gone from an average of 3.22% for a 30-year fixed mortgage rate in January 2022 to more than double that today. Still, home prices are beginning to rise again2 after months of decline.
It can be difficult, and risky, for home sellers to attempt to navigate these rapidly challenging waters on their own. That makes the first-hand expertise and well-informed observations of real estate agents more valuable than ever.
Before you put up the “For Sale” sign, consider these insights from industry pros.
The economy is affecting the housing market in multiple ways
Margaret Poisson
How are today’s economic conditions impacting potential buyers? It’s a nuanced picture and one that’s important to put into context. Margaret Poisson, a REALTOR®️ with Century 21 in Dover, Delaware, points out the low interest rates we saw during the pandemic and into mid-2022 “were, in fact, historic, and designed to support the economy during an unprecedented worldwide pandemic.” She goes on, “After the initial shock over the rapid rate increase, many Americans are accepting this as our new normal, causing housing activity to pick up.”
Carol Romeo
And though ongoing inflation may be lowering the spending power of some potential homebuyers or making them hesitant to purchase a home, there are positive signs for sellers. “Prices continue to increase rapidly for about half of the U.S. homes for sale,” Poisson says, “which suggests there is still great strength in our housing market.”
Carol Romeo, an agent with Coldwell Banker Realty in Brandon, Florida, agrees, noting that home sale prices have been rising in parts of her state since the end of the pandemic. Still, Sunshine State home sellers may need to be patient. “While there’s less housing inventory,” Romeo says, “homes are not selling as fast as they were a year ago.”
Bidding wars are not a thing of the past
The housing market in some parts of the country remains as hot as ever. Just ask Scott Vaillancourt, a Bedford, New Hampshire-based agent with Better Homes and Garden - The Masiello Group.
