Real Estate Trend
In the recent months we have seen the real estate market slowdown and numbers begin to plateau. Previously the market has been a seller’s market with high home property prices, multiple offers, highly competitive, and sometimes bidding wars among buyers. In the past few years the median home price point has continued to rise, yet currently we are seeing the real estate market begin to slow and flatten. Unfortunately, the market is coming down off of this momentous high and leading into uncertainty.
What to Expect:
As interest rates are rising, buyers are becoming more hesitant. Higher interest rates also mean we can expect more expensive home prices due to higher mortgage rates. Buyers are essentially getting less house for their money; the same house they could afford months ago is more expensive now, as house prices continue to rise. Homes are more expensive and housing prices steadily increasing will potentially lead to fewer buyers. Fewer buyers and home purchases will lead to a higher inventory of homes. This will continue the slowdown in sales and flattening of the real estate market we are experiencing. Slower sales will lead to increased days on the market and an increase of home inventory. If you are planning to sell your home, be aware of the median home price, current home inventory, and average number of days on the market.
As home sales consistently drop, how can home staging help?
Buyers have less competition and sellers have more competition as the number of homes for sale is increasing. Home sellers will find it more difficult to sell as quickly with competitive pricing, as changes have slowed down the entire housing market. During market slows down, the number of days on the market often increases. As a seller in a buyer’s market, you definitely need to stage in order to outshine the competition and have a quicker sale. Staging can help add value, avoid longer time on the market, and possibly prevent a drop in listing price. A staged home sets your listing apart from the other homes for sale as multiple properties on your street or in your neighborhood may be listed from the influx of inventory. In a slowing market, buyers will be looking for a deal, anticipating price drops, and expecting move-in ready homes. Buyers in this market have the option of multiple properties to consider, so make sure your listing stands out amongst the crowd in presentation. Home staging has been proven to reduce the number of days a home is on the market and adds value to a home, increasing the offer price. As the market slows and plateaus, add value to your through home staging.