How much are homes worth right now? Over the last several years, neighborhoods have seen home prices shoot to record highs. Even better, it’s been easier than ever to sell your property. However, recently things have changed significantly and that’s due to interest rates. With higher interest rates, buying has slowed down, but not home values.
Inflation has been the main reason why we have seen rates go up for over a year. The battle to keep goods and services affordable has been tough on everyone and we’ve seen everything from insurance to milk go up in price as well. Just as those prices aren’t going down, either have home values, despite properties not selling as quickly as before.
Current Home Values
If you wanted to sell your home right now, it would probably sit much longer than it would if you tried to sell it a couple of years ago. Buyers want to jump at the properties that are available, especially with a larger inventory and prices going down a bit. The problem is that at these current rates, the monthly cost of a mortgage is too high, making homes unaffordable for most potential buyers.
The surprising thing is that values have remained solid. Yes, sellers are dropping their asking prices but only because they want to cash out now. Those who are willing to wait it out are seeing solid offers and opportunities for most properties and buyers are willing to pay more if they know they are getting quality. The challenge for most buyers is buying a property right now that also needs a lot of work.
Expectations For Summer 2024
It’s been announced that we should not expect interest rates to drop anytime soon. Even with mortgage rates going down a little, it’s unexpected that we will see a significant drop this year. However, that does not mean that the housing market is going to be slow. In fact, because of the increased inventory and waiting time, sellers may be in the mood to take the best offer rather than hold out for what they want.
Buyers are going to be aggressive because they’ve seen no signs that properties will drop in price more than 30%. Even though that’s easily $100,000 for most properties, it’s the interest rates that are presenting the challenge. Despite expensive prices however, buyers are losing patience, especially if they use the properties to make money whether it’s AirBnB or by flipping the property.
What Are Your Best Options
Every buyer and seller are different as are their properties which is why working with an experienced realtor can help you make the right decisions as well as avoiding some of the wrong ones. What are your finances currently looking like? Does it make sense for you to buy or sell a property right now? What condition is the property in and what are you looking for?
If you want to sell but the property needs a new roof and you are not getting the offers you want, perhaps covering those costs will fix the problem. If you want to buy and you see a property that needs work, perhaps you need to review the property more and see what it will cost to make it liveable for a year without making major changes just yet. The good news is that this summer, real estate experts expect inventory to be higher than it’s been in the last five years. That’s fantastic for buyers and it may get interest sparked up again for sellers.
Realtor Recommendations
The best place to start when speaking with a realtor is to show them a breakdown of your current situation. What can you afford, what do you want to buy, where do you want to buy, what type of property do you want and more. Fill in the blanks for them and they can offer guidance and advice based on their experience, not only in the industry, but the area you are most interested in buying in.
Local experts are always valuable, not just with buying a home but also selling one. They can manage the entire princess and also ensure that you are getting treated fairly in the transaction. In matters like these, unless you’ve done it before, you can always benefit from having an experienced person in your corner.
