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\n <\/div>\n \n A Top Agent Can Help Maximize Your Home Sale<\/h3>\n
HomeLight data shows that the top 5% of agents help clients sell their homes for as much as 10% more<\/strong> than the average agent. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.<\/p>\n \n There\u2019s no doubt that the real estate market<\/a> in most of the country is calmer than it was two years ago. As mortgage rates increased, it helped pour cold water on an unusually hot market. However, experts say these often-overlooked factors suggest the housing market is still seller-friendly:<\/p>\n A recent decline in home prices caused many to think buyers will hold all the cards in 2023, but a downtrend in prices doesn\u2019t necessarily mean homebuyers will wield full negotiating power.<\/p>\n One reason sellers likely won\u2019t cede too much power is that a record number of sellers<\/a> are backing out of the market. Rick Ruiz<\/a>, a top-selling real estate agent who has been selling in Las Vegas for more than 20 years, says many sellers are choosing not to list because they don\u2019t want to have to swap their previous mortgage rate<\/a> for one with higher financing when they buy their next home.<\/p>\n Ruiz says that because many sellers feel locked in, selling competition is dwindling, and buying competition for some homes is increasing.<\/p>\n \u201cThat takes two properties out of the equation: one that I\u2019m going to sell and one I\u2019m going to purchase, which is creating \u2014 now for the first time ever \u2014 some competition between buyers, especially in very affordable homes,\u201d he explains.<\/p>\n For the sellers who do decide to put their property on the market, this drop-off in listings could mean more room to negotiate conditions or secure the price they want.<\/p>\n The average rate for a 30-year fixed mortgage<\/a> climbed above 7% in November \u2013 stoking fears that demand could dry up. However, that figure has slid lower in recent months \u2013 receding to 6.42% as of March 2023.<\/p>\n Nadia Evangelou<\/a>, the National Association of Realtors\u2019 (NAR\u2019s) Senior Economist & Director of Real Estate Research, says she expects rates to continue to decline this year, and that could cause more buyers to enter the housing market \u2013 and kickstart demand.<\/p>\n \u201cWhen we had lower and declining mortgage rates in December and January, we saw more buyers come back to the market,\u201d she says. \u201cIf mortgage rates fall back later in the year, we should also expect more buyers to be back to the market, and this would be good news for sellers.\u201d<\/p>\n Even though prices have ticked lower in some parts of the country, Evangelou expects low inventory to stop prices from falling much further. She also says low inventory figures should prevent a major housing crash<\/a> from hitting the nationwide market.<\/p>\n \u201cDemand continues to outpace housing supply, and this is due to low housing inventory,\u201d says Evangelou. \u201cWe don\u2019t expect to have any housing crash. The opposite: The housing market seems to be turning around.\u201d<\/p>\n According to St. Louis Fred Economic Data, the active listing count<\/a> for U.S. single-family and condo\/townhomes has sunk from over 1M in 2019 to under 600,000 listings in February 2023. And building trends suggest the housing inventory shortage could worsen. According to a Census Bureau report, housing starts<\/a> in December 2022 were 21.8% lower than the previous year. A lower supply of homes could catch prices before they fall too low, and it may give home sellers a significant edge in the near future.<\/p>\n Inflation and high living costs<\/a> have pummeled buyers in recent years. That strong economic pressure may have elbowed a large portion of the population out of the housing market. In fact, according to the Cato Institute 2022 Housing Affordability National Survey, 87% of Americans said they were worried about the cost of housing<\/a> in December 2022. The same survey found more than two-thirds of Americans (76%) thought that period, the winter of 2022, was a bad time to buy a house.<\/p>\n HomeLight\u2019s Top Agent Insights for New Year 2023<\/a> suggest agents also saw this affordability problem influence potential buyers in their area. The report found 67% of agents believe first-time buyers will explore more affordable areas.<\/p>\n Now, the Fed is actively working to curb inflation, and housing prices that felt unrealistic for many buyers may be calming to more reasonable levels. Evangelou says improved affordability could motivate buyers throughout the rest of the year.<\/p>\n \u201cWe expect housing affordability to be one of the main challenges for buyers in 2023, and this is because of mortgage rates and high home prices,\u201d she says. \u201cHowever, later in the year, this can change, and this is what we expect for the buyers.\u201d<\/p>\n If conditions become more affordable, it could wake up a whole new group of buyers to the possibility of owning a home and cause mid-market home sales to perk up. In fact, Evangelou says she believes we\u2019re already seeing affordability drive new demand in areas of the country where prices are falling.<\/p>\n \u201cWhen we look at the regional level for pending home sales, we see the West Region experienced the highest increase,\u201d she explains. \u201cThe reason for that is that the West, and especially in California, is experiencing price declines. Prices dropped there, and we saw more contract signings because more buyers could afford to buy.\u201d<\/p>\n Home sales started to sputter in January of 2022. In fact, according to NAR, January 2023 marked the 12th consecutive month of declining home sales<\/a>. But then, in February, the NAR reported existing home sales surged 14.5%<\/a>, ending the 12-month streak of declines.<\/p>\n As Evangelou points out, home sales appear to be picking up as mortgage rates settle down.<\/p>\n \u201cWhen we look at home sales, we see that they increased the last two months,\u201d she says. \u201cWe expect home sale activity to pick up in the following months.\u201d<\/p>\n This uptick in activity might mean affordability, mortgage rate conditions, or other factors are emboldening buyers.<\/p>\n There\u2019s little doubt that the past few years have produced seller\u2019s markets throughout most of the country. However, selling a home during a frenzied housing market<\/a> can be stressful for sellers. Oriana Shea<\/a>, a top-selling real estate agent who has been selling in Long Beach for more than 25 years, says she believes we\u2019re entering a more subdued, balanced housing market that could provide a more pleasant environment for sellers.<\/p>\n \u201cThe opportunity is that [sellers] don\u2019t have as much competition,\u201d she explains. \u201cIf you have buyers that are making appointments to come to your home and making offers, those are serious buyers. If it were me, I\u2019d want serious buyers coming in to see my home and not have to wade through the people who may or may not be serious about concluding a transaction.\u201d<\/p>\n With so many twists and turns hitting the real estate market in recent years, it\u2019s easy for sellers to misunderstand what\u2019s going on \u2013 or what their best next move will be. Here are a few misunderstandings that the experts say are cluttering home sellers\u2019 vision in the current market:<\/p>\n It may be tempting for sellers to sit back<\/a> and wait, hoping mortgage rates will drop in the near future. However, Shea says she suggests people base their decision to sell on the amount of equity they have in their home and broader market conditions, not necessarily mortgage rates.<\/p>\n \u201cIf you have a decent amount of equity, then I’m going to say the same thing: If you think you’re going to move at some point, do it while the prices are still lower than they were and before they start going up again because you are still in a better position equity-wise,\u201d she says.<\/p>\n Shea says many sellers wrongly assume they should overprice their home<\/a> in order to take advantage of limited competition. However, she says setting too high of a price is a mistake in the current market.<\/p>\n \u201cWhere sellers are making a mistake is thinking, \u2018Well, there’s not a lot for me to compete with, so, I’m going to price my home up here,\u2019\u201d she says. \u201cYou most likely will go above your price. I’ve seen it happen time and again, even with the limited inventory, the buyers are not going to pull the trigger on something overpriced. They’re waiting it out.\u201d<\/p>\n Even though there are advantages still brewing in the current housing market for sellers, it isn\u2019t the hot seller\u2019s market of the last few years. That means sellers won\u2019t be able to get away with skimping on marketing or presentation<\/a>. Shea says this is an error she\u2019s seeing more and more sellers make.<\/p>\n \u201cFor sellers, I would highly advise them to really pay attention to the marketing and presentation of their home. I’m just seeing so many poorly presented listings in the marketplace,\u201d she says. \u201cIt\u2019s too easy these days for buyers to just pass it by. You need to pay attention to the presentation, the staging, and the marketing.\u201d<\/p>\n \u00bbSee our handy resource page<\/i><\/b>: <\/i>Prepare Your Home for Sale<\/i><\/a><\/span><\/p>\nWhy the housing market may open up opportunities for sellers<\/h2>\n
1. Selling competition is dropping off<\/h3>\n
2. Rate declines could kick up demand<\/h3>\n
3. Low inventory could prop up prices<\/h3>\n
4. More affordability could encourage buying<\/h3>\n
5. Home sales are bouncing back in some areas<\/h3>\n
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The opportunity is that [sellers] don\u2019t have as much competition. If you have buyers that are making appointments to come to your home and making offers, those are serious buyers. If it were me, I\u2019d want serious buyers coming in to see my home and not have to wade through the people who may or may not be serious about concluding a transaction.<\/span><\/q>\n
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6. The market is weeding out unserious buyers<\/h3>\n
Market experts clear up home-selling misconceptions<\/h2>\n
False: It\u2019s always best to wait for mortgage rates to fall before selling<\/h3>\n
False: Overpricing is always a smart strategic move<\/h3>\n
False: The house will sell itself<\/h3>\n