Welcome to 2022!
We made it! We are hoping and praying for a positive and productive year for our clients, agents, friends, and family. We have enjoyed another good year and are working to help our people to find and/or sell a home, or just understand that value they have in their current home.
What is going on in this crazy market?!?
The market this year has continued to be a Seller’s Market. (A “Seller’s Market” is when there are more buyers looking for homes, than there are homes for sale.) Realtor.com ranks the Raleigh area as #11 in the US. Inventory is low, and prices are high.
People are coming from the Northeast and Western states as they have been for many years. As the economy and living conditions worsen in those areas, people that area able to relocate are making the move.
The inventory limitations of new homes have also added to the demand. High lumber and material costs, and delays of major appliances are some of the drivers for the low inventory.
For sellers, this is good news! The avg price over the last 6 months is running around 5% higher than market price. Sellers are getting higher due diligence deposits and are able to choose from multiple offers in many cases.
For buyers, this continues to be a challenging market. Competition for most every home is now normal. Buyers must have cash reserves to cover high due diligence deposits and they may also consider that bidding over market price means they may need to cover any differences between the contract price and the appraised value. Finding a home in this market requires a live search with an agent willing to work for you. Homes only last 1-2 weeks! If they are on the market longer, they are typically overpriced, or have some significant issues that have frightened potential buyers. Your agent should be looking for these issues at every showing.
Mortgage Rates and Finances
Last year some clients were able to secure rates well below 3%. This year many are forecasting rates to begin to rise to the low 3’s by Spring, and end in the mid 3’s by Summer. This is still very low historically, but it all depends on what happens with the economy.
We can provide referrals for lenders as requested. If you need help improving your credit, or just want to shop for the best rate, we can help guide you. We only refer lenders and other service providers that we have received excellent feedback from our past clients.
We also partner with Rent to Own organizations that will purchase a home and rent it back with the option to buy. This is a third party, but we can help you get started if that’s the path you choose.