SUPER IMPORTANT WHEN YOU’RE LISTENING TO THE TODAY SHOW, OR ANY NATIONAL NEWS...
1.Real estate is HYPER LOCAL. Meaning, city to city, neighborhood to neighborhood. Don’t listen to the national news please, their headlines are out of context and made to sell ads.
2. Values are not dropping! However, the buyer pool has shrunk. In other words there are less people vying for the same properties and that shows up in a stunning fashion the further you move up in price point. You can see more clearly why below…
3. Interest Rates Matter. DUH! right? While the average 30 year Conventional last month was approx 7%, which is on average
“normal”. This week we hit 8% in some instances. Its close to triple what it was in 2021 and the early part of 2022. The numbers show it clearly:
$500,000 home 20% down(Principal and Interest ONLY) :
- 2022 at 3% = $1686
- 2023 at 6.8% = $2608
- THAT’S +$919 a month! let’s not even talk about taxes and home owner’s insurance
For that family to stay inline with a 2022 budget, they need to bump down to a 2023 home priced at $320,000 with a payment of $1669.
In a nutshell: Homes in the higher price points are not moving as quickly as last year. Homes in the $200,000 - $450,000 have been flying off of the shelves IF THEY ARE PRICED PROPERLY AT THE ONSET.
Please listen to a professional that has their finger on the CURRENT pulse of the market. Someone who sells AT LEAST 1 home a month, to advise you on value. Things are fluid. I understand that we all as sellers want a high price for our homes. I do too! Understand that buyer’s are educated, they know when something is overpriced and they will stay away. Pricing properly to hopefully stoke some competition is a different story. That becomes a psychological play.
I’m happy to individually analyze your home and give you a current market value if you’d like.