What Will It Take for Prices To Come Down?
What Will It Take for Prices To Come Down? You may be wondering if home prices are going to crash. And believe it or not, some people might even be hoping this happens so they can finally purchase a more affordable home. But experts agree that's not what's in the cards – and here's why. There are more people who want to buy a home than there are homes available to purchase. That’s what drives prices up. Let’s break that down and explore why, nationally, home prices aren’t going to be coming down anytime soon. Prices Depend on Supply and Demand The housing market works like any other market – when demand is high and supply is low, prices rise. According to the latest estimates, the U.S. is facing a housing shortfall of several million homes. That means there are far more people looking to buy (demand) than there are homes for sale (supply). That mismatch is the key reason why prices won’t fall at the national level. As David Childers, President of Keeping Current Matters (KCM), puts it: “The main driving force on pricing is the limited amount of inventory in most markets across the country. That issue is not going to be solved overnight or in the next twelve months.” How Did We Get Here? For over 15 years, homebuilders haven’t been building enough homes to keep up with buyer demand. After the 2008 housing crisis, homebuilding slowed significantly, and it’s only recently started to recover (see graph below): Even with new construction on the rise over the past few years, builders are playing catch-up. And according to AmericanProgress.org, they’re still not even keeping up with today’s demand, let alone making up for years of underbuilding. And as long as there’s a housing shortage, home prices will remain steady or increase in most areas. What About Next Year? The majority of experts agree prices will keep rising next year, but at a much slower, healthier pace (see graph below): But it’s important to note home prices vary by market. What happens nationally might not reflect exactly what’s happening in your area. If your local market has more inventory available, prices could grow more slowly or even decline slightly. But in areas where inventory remains tight, prices will keep climbing – and that’s what’s happening throughout most of the country. That’s why it’s crucial to work with a local real estate expert who understands your market and can explain what’s going on where you live. Bottom Line If you’re wondering what it’ll take for prices to come down, it all goes back to supply and demand. With inventory still limited in most markets, prices are likely to remain steady or rise. To see what’s happening with home prices where we live, let’s connect. That way you’ll have help understanding our market and making a plan that works for you.
Why More Sellers Are Hiring Real Estate Agents
Why More Sellers Are Hiring Real Estate Agents Putting your house for sale on your own – often called “For Sale by Owner” or FSBO – might be on your mind. But you should know that it gets complicated very quickly, especially in today’s complex market. That’s why data from the National Association of Realtors (NAR) shows a record low number are going the route of selling on their own. Instead, more and more homeowners are choosing to work with a real estate agent (see graph below): And here’s why partnering with an expert is the go-to choice. Selling your home is a big deal, and while FSBO might seem like a way to save time or money, it comes with a lot of responsibilities. The selling process requires setting the right price, navigating a growing amount of legal paperwork, and creating a solid strategy to attract buyers. And going it alone often means taking on more than you bargained for. Let’s look at two big reasons why working with a pro can make all the difference. 1. Getting the Price Right One of the biggest hurdles when selling a house on your own is figuring out the right price. It’s not as simple as picking a number that sounds good – you need to hit the bullseye. Price your home too high, and buyers may overlook your listing. Price it too low, and you could leave money on the table or even raise red flags about the condition of your home. Real estate agents are experts in finding the right price for today’s market trends. As Zillow explains: “Agents are pros when it comes to pricing properties and have their finger on the pulse of your local market. They understand current buying trends and can provide insight into how your home compares to others for sale nearby.” With their knowledge of the local market, buyer behavior, and what homes like yours are selling for, an agent will help you make sure you set a price that’s competitive and that’ll draw in buyers. And it’s that perfectly strategic price that’ll set the stage for selling at top dollar. 2. Understanding and Managing the Paperwork Another part of the process is dealing with a growing stack of paperwork, from disclosure forms to contracts. Each document needs to be completed accurately, and there are legal requirements to follow that can feel overwhelming if you’re not familiar with them. This is another area where an agent’s expertise really shines. They’ve handled these documents countless times and know exactly what’s needed to keep everything on track. Your agent will guide you through the paperwork step by step, making sure it’s done right the first time and you understand what you’re signing. With their help, you can avoid unnecessary stress and mistakes that can lead to delays, legal complications, and more. Bottom Line Selling your house is a big decision, and having a trusted real estate agent on your side can make all the difference. Let’s connect so you have a pro to help with everything from pricing your home to managing the details. That way we can take the guesswork out of the process and help you sell with confidence.
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