Here’s a summary of what you can expect for real estate market in the new year and how you can work trends to your advantage.
Inventory is improving. The number of homes on the market has risen by 1.8% since last year.
30-year fixed mortgage rates are expected to rise. Current mortgage rates are currently around 4.5% and are expected to rise to rates over 5%.
Loans will be easier to obtain but closings may take longer. You should be able to speed up the closing process by sticking with a local lender who has ties to nearby appraisers.
Sellers are likely to receive multiple offers from interested buyers. Make credible offers because sellers won’t need to come back with a counteroffer if others are on the table.
Take advantage of your rising home equity if you’re not quite ready to sell. Add value to your home by borrowing money against the property. Take on any home renovations you’ve been putting off or complete any needed maintenance to secure a higher offer when you’re ready to sell.
Price your property right the first time. Buyers are pretty wise in today’s market. They won’t agree to a higher list price than those of similar homes in the same area.
Keep an eye on inventory trends and list your home accordingly. Ask your agent for a monthly report on the number of listings compared to the number closing. Assume price gains are about to slow when you see a small increase in listings compared to closings and that’s the time you should act.