A Shifting Market is a Confusing Market
Consumer confidence drives our real estate activity. That is influenced by factors such as inflation at a 40-year-high, stock market uncertainty and higher mortgage rates. More buyers are being priced out, and even if a buyer can afford it they are not going to make one of the largest purchases of their life if they are not confident and comfortable with their financial and employment situation
Rest assured our housing market is not crashing. It’s normalizing. The home-buying frenzy of the past few years was not normal. The skyrocketing home prices and low interest rates created a ZOO at times and boy could we share some wild stories with you. A cooler, more balanced market may translate to fewer home sales which gives a much needed relief to buyers.
Myth — The housing market is going to crash and prices are going to plummet.
Reality — If Dave Ramsey is making statements like this one well...”Right now is the best time to buy a house in the next five years and here’s why: prices are not going to go down ... They’re going to go up slower, but they’re not going to go down. And so, five years from today, houses are going to be more expensive … So, this is the best price right now if you’re going to buy a home. If interest rates come back down, you should refinance. But don’t not buy waiting on interest rates to come down.”
Myth — Buyers are still racing to look at overpriced homes.
Reality — We have more inventory on the market than we did in February and with the interest rates hovering around 5%, sellers will need to price their homes competitively.
Reality — When looking at inventory, there are so many more options now to choose from. Buyers are not lining up any more for overpriced homes
Reality — Escalating mortgage rates and home prices have shrunk the pool of buyers. The 30-year fixed rate mortgage jumped from 2.93% one year ago to 5.78% (as of June 16 Freddie Mac) so on a $300K mortgage, the average monthly payment has increased from $1,265 to about $1,800
Reality — Gone are the days of listing homes in as-is condition. Homes not only need to be priced appropriately to sell but need to create a great first impression with curb appeal, staging, paint and more.
Here is a quick look at our local market:
Acworth-Cobb County-North Cobb High School — Single Family Residence 30101
1st Quarter of 2022 sold 78 homes — Median sales price $356,000. Days on the Market: 6
2nd Quarter of 2022 sold 77 homes — Median sales price $370,000. Days on the Market: 6
July 2022 sold 29 homes — Median sales price $364,900. Days on the Market: 5
The bottom line is that if you are looking to buy or sell a home, and even thought the market is shifting, we can help you navigate the waters to help make sound decisions for your real estate needs.