Supply & Demand Across the Country

 

Supply and Demand in Today’s Market [INFOGRAPHIC]

Some Highlights

• Today’s housing market is the direct result of low supply and high buyer demand. Here’s what that means for you and your plans to buy or sell.
• For buyers, expect competition, be ready to move fast, and be prepared to submit your strongest offer. For sellers, know your house will be the center of attention and that it’ll likely sell quickly and get multiple offers.
• If you’re ready to move, let’s connect to talk about our local area and how you can take advantage of today’s unprecedented housing market.

 

2022 Housing Market Forecast [INFOGRAPHIC]

Some Highlights

• What does the coming year hold for the housing market? Here’s what experts project for 2022.
• Mortgage rates are projected to rise and so are home prices. Experts are forecasting buyer demand will remain strong as people try to capitalize on rates and prices before they climb, creating another strong year for home sales.
• Let’s connect so you can make your best move in the new year.

Referrals are greatly appreciated - know someone thinking of a move? Please share my information with your friends and family.

To Rent or To Buy, That is the Question

 

With Rents on the Rise – Is Now the Time To Buy?

According to recent data from realtor.com, median rental prices have reached their highest point ever recorded in many areas across the country and they are definitely going up in Montgomery County, if you can even find one before it's gone! The report found rents rose by 8.1% from the same time last year. As it notes:

“Beyond simply recovering to pre-pandemic levels, rents across the country are surging. Typically, rents fluctuate less than 1% from month to month. In May and June, rents increased by 3.0% and 3.2% from each month to the next.”

If you’re a renter concerned about rising prices, now may be the time to consider purchasing a home.

Did You Know Monthly Rents Are Higher Than Monthly Mortgage Payments?

When you weigh your options of whether to buy a home or continue renting, how much you’ll pay each month is likely top of mind. According to the National Association of Realtors (NAR), monthly mortgage payments are rising, but they’re still significantly lower than the typical rental payment. NAR indicates the latest data on homes closed shows the median monthly mortgage payment is $1,204. This is definitely the case now with the rates near historic lows, and while this data is "national averages" if you live in the DMV, you know our average rental price is even higher.

Sticking to national averages for demonstration purposes though, the median national rent is $1,575 according to the most current data provided by realtor.com. In other words, buyers who recently purchased a home locked in a monthly payment that is, on average, $371 lower than what renters pay today (see graph below):

Rents Are Rising Sharply, and They Continue To Increase

The difference in monthly housing costs when comparing renting and homebuying today is significant, but many would-be homebuyers wonder about the future of rental prices. If we look to historical Census data as a reference, the median asking rent has risen consistently since 1988 (see graph below):The rise in rent over time clearly shows one of the major advantages homeownership has over renting: stable housing costs. Think about this for a second because it's maybe the most important factor when you look at overall ongoing cost: Renters face increasing costs every year. When you purchase your home, your mortgage rate is locked in for 30 years, meaning your monthly payment stays the same for the life of the loan. That gives you welcome peace of mind and predictability for many years ahead.

The Bottom Line

With rents continuing to rise locally, renters should consider if now is the right time to buy. There are multiple benefits to buying sooner rather than later. Feel free to reach out to discuss your options so you can make the decision that's right for you. Weichert's "All Under One Roof" services mean I have a mortgage advisor on my team who can run the numbers as they apply to you.

Waiting to Buy a Home WILL Cost You

 

Are you waiting until this "crazy market" cools down?

Some Highlights

• If you’re thinking of buying a home but wondering if waiting a few years will save you in the long run, think again.
• The longer the wait, the more you’ll pay, especially when mortgage rates and home prices rise. Even the slightest change in the mortgage rate can have a big impact on your buying power no matter your price point.
• If you have a home to sell, now is the perfect time to market it.
• Don’t assume waiting will save you money. Let’s connect to set the ball into motion today while mortgage rates are hovering near historic lows.

If you have been thinking of buying or selling in Maryland and have any questions, please don’t hesitate to reach out for a consultation. Want to stay put but refinance to a better rate? I have a mortgage advisor on my Weichert team who would be happy to talk with you as well.

Contract Negotiation in a Crazy Market

 Well, it's really not news at this point. The current market is extremely competitive. The inventory is low and we have a backlog of homebuyers that will last months if not years. What we are witnessing is not a covid induced bubble, but a simple business concept - supply & demand. When supply goes down, prices goes up. However, in real estate, price is not always the deciding factor! There are so many other things in a transaction to be factored in! Contingencies: Home Inspection, Financing, Appraisal, Radon, Home Sale to name the most common - and then there are other elements - rent-back, settlement date, taxes. Every transaction is unique because people are unique and homes are tied to the people who are buying and selling them.

I believe we still have months and months of fierce competition ahead. It's a sellers market for sure, but buyers are still winning and moving in to their dream homes! Rates are still low, but we'll see them go up and what you can afford now will be different than what you can afford then. In the Real Estate game, only one buyer wins per house. You can't win if you don't play and there are definitely ways to play to win! One thing is for sure, having an agent you trust who can get you through these important decisions is paramount.

If you are thinking of selling or buying and have any questions, please don’t hesitate to reach out for a consultation. Want to stay put but refinance to a better rate? I have a mortgage advisor on my team who would be happy to talk with you as well.