Housing Market Snapshot: Fall 2022
With interest rates rising five times this year, the residential real estate market is starting to look different. Today, home buyers have a more challenging time obtaining mortgages than in previous years. While fewer lenders are approving mortgages, house prices are still relatively consistent. Despite fewer buyers in the market, more inventory, and competition among sellers, home values are still high. Most homeowners stand to make a sizable profit if they adapt to market conditions before selling this year. So, in spite of these shifting conditions, home buyers, sellers, and real estate agents can navigate the market successfully with some foresight and strategy.
The importance of pre-listing updates as the housing market shifts
As conditions shift from favoring sellers to giving buyers a slight upper hand in the second half of 2022, homeowners and real estate agents must adjust expectations and listing strategies – but thankfully, not too dramatically. Compared to the past few years through the pandemic, there’s a more heightened need to update homes and market listings competitively. Homes that sell at top prices always require these efforts, regardless of market conditions. That said, it’s time to turn up!
If you’re a homeowner or real estate agent and your goal is to increase your home value as much as possible, pre-listing home improvements are essential. Even small investments like new paint or refreshed flooring will make your property more appealing. Exploring and planning for necessary renovations is wise if your property requires more extensive repairs.
Tips for coping through autumn’s housing market challenges
For buyers: This fall, you can enjoy a slower-paced market, more inventory, and in some cases, a halt in skyrocketing prices. Because competition is a bit steeper for homeowners, you’re likely to see newly updated and livable homes.
For sellers: Focus on curb appeal updates to your online listing and your property. Ensure your interior and exterior walls are fresh, the flooring is immaculate, and your home’s fixtures and appliances are modern. Every repair you make will translate to a higher price at sale and less time on the market. Be mindful of the timelines for obtaining required permits to remodel homes. Some permit offices do not process paperwork for months, so build this into your pre-listing prep.
The staging and photography of your home are equally important to create a top-of-market listing. If you’re concerned about financing your pre-listing updates, Curbio’s award-winning services are perfect for you. We manage and complete projects but won’t charge you for our services until after your home sells.
For agents: Motivate sellers to create a captivating listing. Before going to market, work with Curbio to ensure every strategic update or renovation is complete. We’ll handle everything – including the finances. You and your clients can kick back as we improve their homes. The stress-free services aren’t payable until the homes sell, so we’re accessible to nearly all homeowners. Thousands of agents work with Curbio to complete sales, boost home values, and sell quickly.
The housing market has fewer buyers and more inventory this fall
This fall’s housing market is affected by interest rate increases that make mortgages more expensive and harder to obtain. Buyers’ ability to qualify for home mortgages has decreased. Additionally, they can afford less than they would have recently since increases to interest rates make monthly payments substantially higher (by hundreds, and sometimes thousands, of dollars). With fewer buyers competing for inventory, the pace and profitability of the housing market aren’t as fast or advantageous for homeowners and real estate agents.
The slowing market translates to longer property listing times and more inventory than in previous months and years. As fewer buyers browse the market and the number of homes in local markets increases, pre-listing home improvements and upgrades are critical for any homeowner who wants to sell relatively quickly with upmarket profit margins. Relatedly, prospective home buyers who qualify for mortgages will have more options to choose from and may have a bit more bargaining power.
What more competition means for buyers, sellers, and agents
For buyers: Go to home viewings armed with a pre-approval letter from a lender; this lets agents and homeowners know that you can afford to purchase a home if you make an offer. You’ll expedite the due diligence process and be taken seriously when you bid on houses.
For sellers: After making pre-listing home improvements and creating a stellar online listing with digital curb appeal, it’s time to sell. Consider drumming up interest with strategies encouraging a bidding war on your property. Bidding wars are advantageous when the market favors buyers more than sellers and can ensure you’ll earn a top-of-market price during your home sale.
For agents: Now is the time to pull out all the stops when marketing properties. The first step is transforming homes into compelling listings with Curbio’s turn-key home improvements. Next, make sure you position the listing well online. Once it’s live, go big with marketing: share with your network, use local real estate market publications, and publicize open houses more aggressively now than in the past. Homes won’t sell as quickly, but stand-out listings with great exposure will still sell homes faster and at higher profits.
Adapting to this fall’s housing market conditions
2022 has been a doozy economically; thankfully, the housing market can still be advantageous for buyers, sellers, and real estate agents. The expectations have changed; homeowners with solid pre-listing home improvement plans will be rewarded. Likewise, real estate agents who encourage clients to make their homes as appealing as possible and use exemplary marketing practices will see their businesses thrive.
The good news is that Curbio can help nearly every single homeowner to afford and achieve housing market success. There’s no reason to lose hope or motivation with the forecasted economic turbulence; this fall is still a great time to make moves – strategically.
Does your home need repairs or renovations to increase its value before selling? Tell us about your house, and we’ll be happy to send you an all-inclusive, same-day estimate for free!