by Shawn Boday | Aug 9, 2023 | Housing Market, Real Estate, Real Estate Tips, Shawn Boday
As we dive into the third quarter of 2023, it’s a perfect moment to reflect on the housing market’s journey so far this year and project what lies ahead. The real estate landscape has been marked by some notable shifts, and understanding these trends can help both homebuyers and sellers make informed decisions in the coming months.
The second quarter of the year saw a significant rise in mortgage interest rates. Starting at 6.32 percent in early April, the average 30-year mortgage loan rate climbed to 6.84 percent by late June. Alongside this, the national median home price rose from $375,400 in March to $396,100 by May. These changes in rates and prices have set the stage for an intriguing Q3.
Experts are cautiously optimistic about the upcoming quarter. Despite traditionally buoyant summer months for real estate, Q2’s elevated rates led to a somewhat subdued environment. The ongoing challenge remains a severe shortage of housing inventory, with new listings for sale hovering around 25-30 percent below last year’s levels. This scarcity of homes, coupled with higher mortgage rates, suggests that the third quarter of 2023 might not witness robust home-buying activity.
Mortgage interest rates, a pivotal factor, are projected to remain within the 6.4 to 6.7 percent range for a 30-year fixed mortgage, according to financial analysts. While recent data suggests that inflation may ease in the coming months, leading to a potential drop in mortgage rates, the predictions vary. Some experts believe rates could even dip below 6.5 percent, while others expect them to hover around 6.75 percent initially and eventually decline toward 6.0 percent by September.
The lack of housing inventory will continue to exert pressure on home prices throughout Q3. Buyers may encounter fierce competition, with a higher percentage of homes selling above the asking price. While home price growth is predicted to average around 4 percent this year, median home prices are anticipated to slightly decrease, settling around $385,000 in Q3.
For potential homebuyers, the current market presents affordability challenges. High home prices combined with elevated mortgage rates mean careful consideration is essential before making a purchase. Experts advise potential buyers to ensure job stability and steady earnings before committing to a home transaction.
On the flip side, sellers continue to have the upper hand in many markets due to tight inventory levels. However, sellers should weigh the benefits of selling against the potential challenge of finding a new home in a market with elevated rates. The decision to sell should take into account the balance between current low mortgage rates and potentially higher ones in the future.
The real estate market in the third quarter of 2023 promises a mix of challenges and opportunities. While the housing shortage and increased mortgage rates pose hurdles, the potential for stabilized or slightly reduced home prices may provide some respite for both buyers and sellers. As you navigate this complex landscape, remember that careful consideration and expert guidance are essential to make the right decisions for your unique circumstances.
by Shawn Boday | Feb 7, 2023 | Real Estate, Shawn Boday
When it comes to buying or selling a home, it’s important to get your information from a trusted source. Unfortunately, there is a lot of misinformation and bad advice online, and if you don’t do your research, you could be caught off guard. Many myths about real estate can be easily debunked with the right information. To help you stay informed and avoid making costly mistakes, here are ten common real estate myths debunked.
Real Estate Myth 01: It’s not necessary to get preapproved.
It is beneficial to get preapproved before beginning the home-buying process. Not only will it lets you know much you can afford, but it will also demonstrate to sellers that you are serious about buying and have the financial means to do it. Contrary to popular belief, getting preapproved won’t hurt your credit score.
Real Estate Myth 02: If you don’t have children, the school system isn’t relevant.
When purchasing a home, consider looking for one with good schools, even if you don’t have kids. Buying in a desirable school district will add to the resale value. This is why schools are an important factor for many homebuyers.
Real Estate Myth 03: Realtors only show homes listed with their own company.
Realtors are bound to a strict code of ethics, meaning they must show you any and all homes that fit your criteria, regardless of the listing company. As long as the property is listed in the MLS system, you have the right to view it.
Real Estate Myth 04: When bidding on a home, offer a lower price.
Making a lowball offer on a house can be risky in a competitive market. If there are multiple offers on the house, submitting a lower offer runs the risk of not being taken seriously and may not result in a counteroffer. Additionally, low offers can come across as disrespectful to the seller and can make for an unpleasant transaction. Therefore, it is best to make an offer that is close to or at the asking price.
Real Estate Myth 05: When pricing your house for sale, set it high.
When it comes to pricing your house for sale, it’s best to list it at a price that is competitive and fair. An overpriced house can be a turn-off for potential buyers and result in fewer offers. To make sure your home grabs the attention of buyers, it’s best to price it realistically so that buyers know they are getting a good deal.
Real Estate Myth 06: To make more money, renovate it beforehand.
Before deciding to renovate your home when selling, it is important to take into account the cost of the improvements and the return on investment. Minor repairs, decluttering, and staging may be all you need to get the best possible price. In today’s market, many buyers are looking for more affordable homes and are willing to do the repairs themselves.
Real Estate Myth 07: If a home is in perfect condition, an inspection isn’t necessary
No matter how new or attractive a home may appear, it is always important to get a professional inspection. This will alert you to any potential issues that need to be addressed before you take possession. Without an inspection, you could be stuck with expensive problems in the future. It is wise to either ask for the problems to be fixed before you buy the home or to have the purchase price lowered to cover the cost of the repairs.
Real Estate Myth 08: Buying is a better option than renting.
It’s not always a given that buying a home is better than renting one. Many variables come into play when considering this decision, including your financial situation, stage in life, and future plans. To make the best decision, it is important to crunch some numbers and compare the costs of each option. You may discover that, depending on your lifestyle and goals, renting could be the right decision for you.
Real Estate Myth 09: Realtors earn a lot of money.
Real estate agents do not have a set salary but instead are paid on commission. This commission is typically split with the brokerage firm that employs them, as well as covers expenses such as driving, hosting open houses, doing research, etc. Furthermore, the commission they receive is not guaranteed, as it is open to negotiation.
Real Estate Myth 10: Having a real estate agent doesn’t offer any benefits.
Having a real estate agent can be a huge advantage when buying or selling a home. They have access to homes for sale that you may not have known about and can use their expertise in order to negotiate the best price possible. They can also help guide you through the paperwork and complex process of buying or selling a property. Without a Realtor, you may find yourself struggling to navigate the market, so having one in your corner can make all the difference.
by Shawn Boday | Jan 15, 2021 | Business, Housing Market, Real Estate, Real Estate Investing, Real Estate Tips, Seattle, Shawn Boday, Washington
Homeowners often buy and sell their property. The most important aspect of a house listing is to be seen by as many people as possible to increase a sale’s chances. Despite a general market saturation in the housing sector, it is possible to achieve a higher listing and to reach a wider audience with a few tips and tricks as outlined below.
Invest in SEO Marketing
Search Engine Optimization is a tool that, when used properly, gives homeowners a competitive edge when it comes to online searches increasing home showings. The house listing is prioritized through specific keyword searches. It is advisable to have several long keyword phrases that include the general scenery where the house is located.
Make use of a Lockbox.
A lockbox is becoming one of the avenues that are giving homeowners a competitive edge. It allows the agent to show the house to house hunting individuals even when you are not home. It should ideally be located close to the house so that the agent can have easy access to it while you are away.
Host an Open House Event
One way to pull in the masses to a house showing is to host an open house event. Employing channels such as social media, the local newspaper, and website listings will attract many interested buyers locally. During the event, it is crucial to keep the guests entertained by serving snacks, having brightly lit balloons and banners, and having a magician or clown entertain them.
Offer Time-bound Deals
Proposing a good deal that runs out in a limited time is another way to get people looking into the property. Scarcity induces demand. Since everybody wants a good deal, they will be more motivated to purchase soon if the offer is only on for a limited time.
Competitive Pricing
Any homeowner’s goal is to make the most amount of money they can from selling the property. However, sometimes pricing it at the higher points doesn’t work in favor of the home seller. Having a competitively priced house allows buyers to get it at the listing type’s estimated market value.
A combination of the above tips gives a home seller a competitive advantage, and the client handling the sale of the house can have a much smoother time as they coordinate the sale on behalf of the homeowner.
by Shawn Boday | Jan 6, 2021 | Business, Home Buying Process, Housing Market, Real Estate, Real Estate Investing, Real Estate Tips, Seattle, Shawn Boday
In 2020, the housing market experienced record sales due to extremely low mortgage rates and the new flexibility that comes with working from home. In addition, home prices have remained competitive as demand continues to increase. But what will the housing market look like in 2021? Take a look at what experts predict the trends will be this year.
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Low Inventory
The number of homes on the market has been pretty low. It has been relatively easy for sellers to sell their homes but not as easy for buyers to purchase. Supply and demand will likely continue and increase home prices by quite a bit during the first half of 2021. But during the second half of the year, economic headwinds may start to cause prices to decrease slightly and the number of homes on the market to increase.
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Rising Home Prices
Given the pressure to buy quickly because of low inventory, home prices should continue to increase, and there won’t be much room or time for negotiation. While this is great for sellers who stand to make a substantial profit on their home, it’s not the best news for buyers. If you’re looking to purchase a home in 2021, you must go into the process knowing what your max budget is. You need to be ready to walk away from home despite pressure to act quickly and spend more than you can afford.
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Incredibly Low Interest Rates
Mortgage interest rates dropped to an all-time low in 2020, and this trend is expected to continue into 2021. Many economists expect interest rates to hover around 3 percent in 2021, increasing compared to 2020 rates but still incredibly low. Low interest rates are good news for both buyers and sellers because they help reduce overall mortgage costs and make buyers more motivated.
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More Online Services
More virtual tools, such as online selling and buying, virtual real estate agents, online closings, and more have become quite favorable during the COVID-19 pandemic. As the virus continues to surge, these are expected to continue to be prominent in 2021 as well.
Buying and selling a home can be a stressful task. While the real estate market has faced many unprecedented challenges recently, there are some significant benefits to buying and selling homes right now. These positive trends are expected to continue into 2021, so be sure to consult with a real estate agent as soon as possible if you’re considering listing or purchasing a home this year.
by Shawn Boday | Dec 3, 2020 | Real Estate, Real Estate Investing, Real Estate Tips, Real Estate Value, Shawn Boday
As a real estate agent, finding the right home for your client isn’t always easy. To find a home that interests a buyer, make sure that you know the buyer’s interest, which is a step in the right direction. To do this, you can ask the client what features they want in their home, and this way, you’ll be able to find the right home for them. Below are some of the trends that attract home buyers;
Outdoor Spaces
Many home buyers are always interested in a home with an outdoor space where they can get out of the house and relax without leaving home. In other cases, buyers want a blending indoor and outdoor living space where the living room is extended to the backyard. Outdoor spaces are important to buyers because, in summer, this space is perfect for dinners and barbecues or holding large gatherings.
Location
Location is another critical feature that buyers consider while buying a home. A home that is located in a secure neighborhood is one of the homes that interest buyers. Also, many are usually interested in homes that have easy access to main roads. Locations like these can
be very pricy, so it always necessary to go with your client’s budget.
Spacious Kitchen
The kitchen is usually considered the heart of a home. Homes with large kitchen areas, especially open floor kitchens, seem to sell faster. They sell faster because an open floor kitchen allows easy transition between rooms.
Home Offices
Many people have jobs which allow them to work from home. A home office is a feature that such types of buyers look for when purchasing a home. A home office with a door is essential because it helps one concentrate on their work without destructions. The room’s color choice should be considered because some colors do not provide a conducive environment to work.
Eco-friendly Features
Nowadays, home buyers are interested in homes that are energy efficient. Such homes are the ones that have hardwood floors, double panned windows, and energy saving lightbulbs. Homes that are energy efficient help to limit utility bills and also benefit the environment
The Number of Bathrooms
Homebuyers are often interested in homes with at least two bathrooms. As an agent, try looking for new homes for your client because most of them have this feature. A home with two bathrooms or more will tend to sell faster than that with only one bathroom because they help save time because you don’t wait around to wait for someone to finish using the bathroom. You could use the other one.
Every home buyer wants a home that has the features mentioned above. To find a home that ticks all these boxes, real estate agents should consider modern homes at affordable prices.
