When everything is increasing including the home value, you must be wondering and curious at what factors that contribute to the rising price, right? This might be due to the current economic climate affecting the home transactions.
Regardless weather you are the home sellers or buyers, here we would like to explain the home value trends this year. Read our full review and make it your guidance to successfully sell a home at an expected price.
Home Value Trends 1: Low But Growing Home Inventory
In today’s market, the home inventory is noted to be low. That means there is only a few homes available for sale while the buyer demand is higher than the home inventory. This can lead to a worse condition that is predicted to be too terribly decreasing. As fluctuation does, the home inventory was noted to increase about 46%. This shows that home inventory is growing.
For sellers, the low but growing home inventory means less competition. For example, if your home is located in a strategic area or your home has some features that meet the buyer’s expectation, there must be some other offers. Meanwhile, if your home is not the most attractive home for buyers, you’ll still get some offers.
Home Value Trends 2: Home Values Are Still Rising Annually
Home prices are still rising from year to year. This is the next home value trend you should know. Based on the national median home price data, the active listing is increased by 11% to $416,000 in November 2022. This is compared to the price in November 2021. However, the rates are down meaning that the home value growth will probably be slower in 2023.
In relation to the home value fluctuation, the strong buyer demand and a shortage of homes for sale won’t let the prices to go down. They can still be higher than the previous year. Now if you are a seller, you must feel relief.
For sellers, the fact that home values are still rising annually is a great news. This gives you an opportunity to have more money to buy a new home. However, to sell your old home at the higher price, you need to consult with the experienced agent. Hiring a professional would be more beneficial as he knows all about the real estate market.
Home Value Trend 3: Mortgage Interest Rates Are Higher
The next home value trend you also need to know is the fact that mortgage interests are higher. Though the average mortgage interest rates were lower in 2021, they go up in the years to come.
The average rates for a 15-year fixed-rate mortgage were 2.85% in January 2022. Later, the average rates increase up to 6.36% in October 2022. This is the highest rates risen over 15 years.
For sellers, the higher rates mean that there are only a few buyers interested to buy the home. this implies that your home can be longer in the marker for sale.
Home Value Trend 4: Growing Online Home Services
Online home services are always growing. One of which is Zillow. This site allows the homebuyers to search the list of homes that are on sale in online market. In this case, using virtual agent can be much beneficial. A virtual agent will help handle everything online. He will process all the steps of selling home online, from working out the process to finally get on the transactions.
However, you should be aware of the things that may not be good. That is because your home is your biggest asset, right? Consider when the experience professional is available to help you, then why do you opt for a virtual assistance?
Home Value Trend 5: The More Accessible Risky Buying Options
The last but not least home value trend to discuss is the more accessible risky buying options. Be creative in selling home but be aware of the risk.
If a buyer wants to buy a home but he cannot afford it, a rent-to-own agreement is the most widely-chosen way. However, this is a bad deal.
This way, the potential buyers agree to rent the home and at years later they will be able to own the home. Positively, this method is beneficial as it doesn’t require a down payment. However, a buyer should be qualified a mortgage.
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Unfortunately, a rent-to-own method offers the more expensive renting price. That is because the monthly payment will lead the buyer to own the home in the end. This is the worst choice for a home buyer but it is beneficial for the sellers.
All in all, these home value trends are the facts about home values which can go up and down due to some factors. Some online home values are available to help you determine your home price on your own. However, hiring a professional is more recommended.