Winston Salem - Early October is the Sweet Spot for Buyers

Carolina Living Real Estate Can Help AND Save You Money!

Are you looking to buy a home? If so, we’ve got good news for you.

While there’s no denying the housing market is having a great year, many of the headlines are focused on the perks for sellers. But what about buyers today? As a buyer, you’re likely braving bidding wars and weighing low mortgage rates versus price appreciation as you search for your dream home. If you find yourself a bit discouraged, hear this: there are clear signs buyers may have more opportunities this fall.

According to realtor.com, the sweet spot for buyers is just around the corner. In a recent study, experts analyzed housing market trends by looking at data from the past several years. When applied to the current market, experts determined the ideal week to buy a home this year. The research says:

“Nationally, the best time to buy in 2021 is the week of October 3-9. This week historically has shown the best balance of market conditions that favor buyers.”

So, what’s that mean for you? If you’re looking to buy a home, there’s a golden window of opportunity coming. Here’s what you can expect from that week.

Increased Housing Supply

The number of homes available for sale should increase. According to realtor.com, you can expect to see more new listings come to market the week of October 3. The findings estimate we’ll see roughly 17.6% more homes available than we saw at the start of the year.

This means you’ll have more options to choose from which should be a welcome relief in a market with tight housing supply.

Fewer Bidding Wars

With more homes available, you should also see a slight decline in the number of bidding wars. Having more options means buyers may not be competing as intensely for the homes on the market because there are more choices to go around.

This means when you write an offer, you may have less competition and a better chance of being the top bid. Just remember, it’s still important to come in with a strong offer.

Adjusted Homes Prices

As we move into the end of the year, the findings from realtor.com note this week may also be one of the peak weeks for price reductions in 2021. Historically the data shows an average of 7.0% of homes have a price reduction that week. Why? When housing supply ticks up, sellers need to look for other ways to make their house stand out.

This means, while home prices are still appreciating overall, you may see some homes with price adjustments from eager sellers. The process of closing a house takes time. To close before end of year, sellers may be more motivated this October.

Bottom Line

If you’re in the market for a home, don’t lose steam now. Data shows early October may give you the long-awaited opportunity to find the home of your dreams. Let’s connect so you have a trusted ally and advisor to help keep you motivated so you can find the perfect home for you.

Winston Salem | The Truth About Today’s Buyer Demand

 

Let Carolina Living Real Estate Guide You Through This Market

When it comes to the latest news in real estate, there are a lot of sensational headlines in the media. In times like this, when it can be hard to know what to believe, put your trust in the experts. Those of us in the housing market respect that buying or selling a home is a major life decision, and we offer advice based on what the data shows.

Despite what you may have read, the housing market is still undeniably strong. Here’s a look at what leading experts have to say about buyer demand today and how it continues to shape the industry:

Michael Lane, President at ShowingTime:

“In general, there are definite signs of cooling demand. However, buyer traffic is still at historically high levels compared to pre-pandemic showings.”

Odeta Kushi, Deputy Chief Economist at First American:

“Seasonally adjusted purchase applications tick up slightly to the highest level since July. Demand for homes remains strong and steady. Excluding 2020 (not a good benchmark) purchase applications are the strongest in a decade.” 

Selma Hepp, Deputy Chief Economist at CoreLogic:

“Home buyer demand pushed price growth to a new record high in June, with S&P CoreLogic national Case-Shiller Index clocking in an 18.6% year-over-year growth rate. The month-to-month index jumped 2.18%, making it another strong monthly growth, and the fastest May-to-June increase since the data series began.”

What It Means for You

As a seller, buyer demand is an important factor that helps influence how fast your house will sell and how many buyers may be competing for it. When buyers have to compete against each other for a limited supply of available homes, bidding wars can drive prices up. While things have cooled slightly since the peak of the pandemic housing rush, buyer demand is still far surpassing historical norms. That’s why we’re still in a sellers’ market.

Bottom Line

If you’re torn on whether or not you want to sell your home this year, rest assured it’s still a great time to make a move. Let’s connect to discuss how you can sell now and do it on your best terms thanks to today’s buyer demand.

Your Carolina Living Real Estate Agent Is Key When Pricing Your House

 

Let Carolina Living Guide Winston Salem with Your Next Real Estate Move!

Some Highlights

• Pricing your house right takes market experience and expertise.
• To find the best list price, your agent balances current market demand, values of homes in your neighborhood, where prices are headed, and your home’s condition.
• If you’re ready to sell, don’t guess on the price. Let’s connect today so we price your house to attract multiple offers and maximize your return on investment.

Winston Salem | Market Forecast Points to Continuing Growth

Let Carolina Living Real Estate Help You with All Your Winston Salem Area Real Estate Decisions.

With all the competing media reports and surveys, there are many questions you may have about the housing market as we approach Q4 2021. We spoke with Dan Habib of MBS Highway to get his thoughts on a market forecast, so you can better build your business!

Interest Rates

• Rates should remain attractive until at least the end of the year.
• The Fed has been buying quite a few mortgage-backed securities (MBS), but they soon will need to begin “tapering” (slowly reducing or eliminating those purchases), which may lead to a rise in rates. They will give plenty of advanced notice.

Is the Housing Boom Over?

• No, housing is strong, and there are not bubble-like conditions as in 2007. Today, there is not enough inventory, and homes are appreciating roughly 16-17% year-over-year.
• The latest Mortgage Bankers Association data shows that home purchase applications are down 18% year-over-year, but this does not capture cash buyers. When you figure in their big increase year-over-year, the decline in applications is closer to 9%.
• Demand will continue to increase due to demographics, even with higher prices. The median age of first-time homebuyers is 33, and that age group will grow in coming years.

Builder Challenges

• Builders are struggling to get new homes on the market due to elevated material costs, labor costs, and supply challenges.
• It’s not profitable for builders to provide the lower-cost-to-build homes that are needed to boost inventory.
• While lumber prices have come down, the aggregate residential material costs are up 13% from the beginning of the year. However, the National Association of Home Builders (NAHB) expects that production challenges should ease over the coming months, and the market should return to more normal conditions.

To Buy or Rent?

• Renting is still not the best option for consumers. The largest landlord in the U.S., Invitation Homes, as well as Apartment List, have both reported almost 14% year-to-date increases on new rents. If this pace were to continue, rental increases would see a 20% rise in 2021. Remember that rents can continue to move higher each year: Invitation Homes reported a 6% increase on renewals.
• Because of increasing demand and tight supply, home values should be well-supported in the future, meaning buying is a better choice than renting.

Contact me today with your questions about the market or any homebuying needs!