There is still room for opportunity in real estate
Although 2022 may go down in history as a year of housing market volatility, 2023 offers a chance for normalcy to return. As home sales and prices level off, many Americans who were on the sidelines last year should feel comfortable jumping back into the housing market as mortgage rates are predicted to level off as well.In order to get a lower interest rate, many first-time home buyers are willing to pay points.This results in a stable and manageable monthly payment, something that many first-time home buyers overlook.
My predictions with current and future sales in 55 Plus communities.
When conditions are right, value continues to rise. Buyers were less likely to make purchases in November, December, and the first three weeks of January because they were preoccupied with holiday preparations and celebrations.
These baby boomers are in the market, and they are willing to pay above asking. Most of the time, our team uses cutting-edge methods of promotion that have been shown to be highly effective. If you or anyone you know is interested in purchasing or selling a home in a 55+ community, please contact me, Dan Swing. 904-671-9225 Our team can also assist you in a safe home purchase and reasonable price negotiation outside of these areas.
Stock Outages Will Continue.
To begin, the nationwide inventory shortages that have persisted for the past few years will persist. The housing market still has not fully recovered from the effects of the Great Recession, and we are about 3–6 million housing units short of where we should be (rental and for sale). If that’s what you want to call it.The communities geared toward people aged 55 and up are thriving.
Combined with the widespread shortages of raw materials and workers in the post- Covid world, market upheaval has become the new normal.Ultimately, the United States needs to add about 5.5 million single-family and multifamily units to keep up with growth in population and demand. The current rate of inflation will only increase if this trend is not reversed.
Buyers’ reluctance has been exacerbated by the dramatic shifts in mortgage interest rates over the past few years. Inflation has slowed, and interest rates, while still double what they were a year ago, should level off below 6% by 2023. First-time buyers often prefer adjustable-rate mortgages in this scenario because they have a lower interest rate than fixed-rate loans. Similarly, the average home ownership period for this group of buyers is shorter.
Uncertainty is bred by inflation.
Last but not least, inflation continues to sow doubt in the hearts of would-be purchasers, just as it has done all over our economy.
In a market where 28% of homes are selling for more than their asking price, it’s wise to advise first-time buyers to lower price point in their home search to avoid going over budget. Last year, buyers typically purchased their homes for 100% of the asking price.
The National Association of Realtors advises its members to keep informing their clients about government-sponsored programs available in their area —especially those for first-time home buyers—and the variety of low down-payment financing options offered by lenders, despite a decline in the number of first-time buyers in 2022 compared to the previous year due to housing affordability challenges for many.
Strong connections with multiple lenders facilitate a smooth transition and relocation for us. Unlike Opendoor, They boast “The New Way To Sell Your Home!” I’ve been practicing their policy and model for years, actually since 2012. Many seasoned agents are able to and willing to provide buyers and sellers with options for dealing with transitional challenges, such as locating the most favorable mortgage terms and agreeable arrangement. I might add that RE/MAX agents are in every state of America and successful manage smooth transactions and transitions in all facets of your buying and selling experience and MAXIMIZE your net profit on the property your selling.
The stabilization of the housing market is good news after several years of instability. Agents who assist their clients in adapting to the ever-changing market conditions are increasingly valuable. Even though it’s impossible to know for sure where the economy and international markets are headed, there is a wealth of data and useful resources available to consumers to arm them with as much information and understanding as possible before engaging in any financial transaction.