The recent climb in interest rates has slowed the real estate market somewhat, causing some potential home sellers to think they may have missed the optimum moment to sell their homes. However, that’s not quite accurate. Just because interest rates are rising doesn’t mean it’s not still a good time to put your home on the market. Most economists predict that it will continue to be a sellers’ market, at least through the end of 2022. Here’s why…
Why it’s still a sellers’ market
1. Demand far outpaces supply.
Demand for homes continues to drive home prices upwards. The average home value in the United States was $407,600 in May 2022, according to the National Association of Realtors. That’s a 25 percent increase from the same period last year. One of the prime reasons for this situation is not enough new homes to satisfy demand. This is due in part to home builders not being able to get building supplies in a timely manner and the chronic lack of available labor for new home builds. In addition, there is increasing demand for homeownership from several demographics, including Millennials and Hispanics, and rents are increasing at a higher rate than homes, causing many renters to reconsider homeownership.
2. Inventory of homes remains low.
As long as there are fewer homes on the market than buyers who what to own a home, it will continue to be a sellers’ market. That’s simple economics 101. When buyers have few choices of homes, they will continue to pay top dollar to secure a home they like. In addition, foreclosures are at historic lows, meaning that there aren’t “bargain” homes flooding the market as they did after the market crash in 2008.
3. The US economy remains strong, despite inflation
The US economy continues to be strong. Despite inflation and rising interest rates, unemployment is very low (3.5 percent in June) and stock market indexes continue to edge upwards. Consumer spending also remains robust. As long as people are working and spending money, it’s unlikely that they won’t continue to invest in housing.
What you can do to increase your home’s sales appeal?
Even though it’s still a sellers’ market, you can help your home sell for top dollar by doing a few things in preparation for the sale. These include…
1. Setting your home asking price correctly.
One of the most important aspects of selling your home is setting your asking price. Ask too much, and you may turn off some prospective buyers. Ask too little, and you’re leaving money on the table. A real estate agent familiar with your area can be a big asset here. They will look at the prices of recent home sales in your area that are similar to yours and suggest a comparable price.
2. Upping your curb appeal.
Your curb appeal can be the difference between a prospective buyer making an appointment to view your home or driving right by. Today, most buyers view available homes online, so your home exterior is out there for everyone to see. Boost your curb appeal by giving your garage and front door a new coat of paint, cleaning up any leaves or other yard debris and adding some attractive landscaping (even a few pots of annuals will help.)
3. Considering staging.
Removing some or all of your personal possessions and having a professional firm stage your home for viewing can be expensive. The nationwide average is between $650 and $2,500, according to Home Advisor. However, this can be a good investment. On average, a staged home sells for $40,000 over the listing price, according to data from the Real Estate Staging Association. Staging declutters your home and allows the prospective buyer to see how each room can be used. Remember: buyers are generally not very good at imagining how a space will look with their possession in place.
Are you thinking about selling your Lake Oconee or Lake Sinclair home? Your asking price matters more than ever. We can help. To learn more about buying (and selling) property in this unique, scenic area, contact Kim and Lin Logan Real Estate. We are the top real estate company in the Lake Oconee/Lake Sinclair area.