Tag Archives: #homebuyers

What You Can Expect from the Spring Market

With the spring housing market underway, many of you are probably curious about what you can expect when it comes to buying or selling a house. While there are multiple factors causing some uncertainty, the housing market seems to be relatively immune from the impacts of the war in Ukraine, rising inflation, and the first rate increase from the Federal Reserve in over three years.

Here’s a look at what the real experts say you can expect this spring.

1. Mortgage Rates Will Climb

Freddie Mac reports the 30-year fixed mortgage rate has increased by more than a full point in the past six months. And despite some mild fluctuation in recent weeks, experts believe rates will continue to edge up over the next 90 days. As Freddie Mac says: “The Federal Reserve raising short-term rates and signaling further increases means mortgage rates should continue to rise over the course of they year.”

If you’re a first-time buyer or a seller thinking of moving to a home that better fits your needs, realize that waiting will likely mean you’ll pay a higher mortgage rate on your purchase. And that higher rate drives up your monthly payment and can really add up over the life of your loan.

2. Housing Inventory Will Increase

There may be some relief coming for buyers searching for a home to purchase.

 Realtor.com recently reported that the number of newly listed homes has grown for each of the last two months. Also, the National Association of Realtors (NAR) just announced the months’ supply of inventory increased for the first time in eight months. The inventory of existing homes usually grows every spring, and it seems, based on recent activity, the next 90 days could bring more listings to the market.

On Cape Cod, there were a little over 200 new listings in January. In February that number was over 400. While that’s not close to normal inventory, it is trending in the right direction.

Anecdotally, our colleagues at our Today Real Estate company wide meetings seem to be talking more about new listings than they have in a while.

If you’re a buyer and have been frustrated with the limited supply of homes available for sale, it looks like you could find some relief this spring. However, be prepared to act quickly if you find the right one.

If you’re a seller, listing now instead of waiting for additional competition to hit the market makes sense. Your leverage in any negotiation during the sale will be impacted as additional homes come to market.

3. Home Prices Will Rise

Prices are always determined by supply and demand. Though the number of homes entering the market is increasing, buyer demand remains very strong.

As realtor.com explains in their most recent Housing Report: “During the final two weeks of the month, more new sellers entered the market than during the same time last year…However, with millions of millennials at first-time buying ages, housing supply faces a long road catching up with demand.”

What does that mean for you? With the demand for housing still outpacing supply, home prices will continue to appreciate. Many experts believe the level of appreciation will decelerate from the high double-digit levels we’ve seen over the last two years. That means prices will continue to climb, just at a more moderate pace. Most experts are predicting home prices will not depreciate.

Won’t Increasing Mortgage Rates Cause Home Prices To Fall?

While some people may believe a 1% increase in mortgage rates will impact demand so dramatically that home prices will have to fall, experts say otherwise. Doug Duncan, Senior Vice President and Chief Economist at Fannie Maesays: “What I will caution against is making the inference that interest rates have a direct impacting on house prices. That is not true.”

Freddie Mac studied the impact that mortgage rates increasing by at least 1% had on home prices in the past. Here are the results of that study:

What You Can Expect from the Spring Housing Market | MyKCM

As the chart shows, mortgage rates jumped by at least 1% six times in the last 30 years. In each case, home values increased.

So again, if you’re a first-time buyer or a repeat buyer, waiting to likely means you’ll pay more for a home later in the year (as compared to its current value).

Bottom Line

Three things seem certain going into the spring housing market:

  1. Mortgage rates will continue to rise.
  2. The selection of homes available for sale will modestly improve.
  3. Prices will continue to appreciate, just at a slightly slower pace.

Curious about your options? We’re happy to answer your questions. Let’s connect at 508-360-5664 or msennott@todayrealestate.com.

It’s important that you have the right information to make an educated and informed decision.

Enjoy your week…

Mari and Hank

Is This Really the Year to Buy a Home?

Every year, many renters ask themselves the same question: Should I continue renting, or is it finally time to buy a home? 

On Cape Cod, if you’ve been lucky enough to find a place to rent, chances are you’ve asked yourself this question at least once lately, as it’s likely your monthly housing costs have risen. After all, according to Census data, rents have gone up consistently for decades.

If you’ve been looking for an affordable place to rent, you know how difficult that is. You may be wondering, if purchasing a home is a better plan.

To make an informed and powerful decision about buying a house, the first step is understanding what’s happening in today’s market, so you can determine which option is the better long-term financial decision for you.

Rents Are Going Up Again This Year

Make no mistake, rents are skyrocketing.  Data from realtor.com shows just how much rental prices are surging throughout the country. The graph below highlights rental unit price increases over the past year:

Are You Wondering if This Is the Year To Buy a Home? | MyKCM

The Fair Market Rent (FMR) for the Cape/Barnstable County for a two bedroom home this year is $1,879! (That could be a pretty decent mortgage payment.)

In 2021, the FMR was $1,667.

Homeownership Offers Stable Monthly Costs

One of the key benefits of owning your home is that you’re able to lock in and stabilize your payments for the duration of your loan. That’s not the case when you rent.

With rents on the rise, there’s a good chance many people will see their costs increase even more this year. As Danielle Hale, Chief Economist at realtor.comsays: “With rents already at a high and expected to keep going up, affordability will increasingly challenge many Americans in 2022.”

So, if you’re ready to become a homeowner, continuing to wait may not make financial sense. Instead, you can escape the cycle of rising rents and enjoy the many benefits that come with homeownership.

Starting your journey can pay off significantly. We know it’s a big step. And you probably have well-meaning relatives and friends advising you to not make a move. But, by continuing to pay rent, all you’re doing is paying your landlord’s mortgage.

Have questions about whether this if your time? We’d be happy to answer them. Let’s talk at 508-360-5664 or msennott@todayrealestate.com.

We can also refer you to a number of reputable lenders, who can give you excellent advice about your financial options.

In addition, you can receive a copy of our e-guide for Home Buyers, which is available by clicking here.

It’s important that you have the right information to make an educated and informed decision.

Happy Spring!

Mari and Hank

If You’re Waiting for the Bubble to Burst….

recent survey revealed that many consumers believe a housing bubble is beginning to form. That feeling is understandable, as year-over-year home price appreciation is still in the double digits.

We’ve seen comments on our own Facebook page from posters reacting to recent listings saying that they’re waiting for the market to crash. We see references on various social media sites comparing today’s market to “the last time.”

However, this market is very different than it was during the housing crash 15 years ago. Here are four key reasons why today is nothing like the last time.

1. Houses Are Not Unaffordable Like They Were During the Housing Boom

The affordability formula has three components: the price of the home, wages earned by the purchaser, and the mortgage rate available at the time. Conventional lending standards say a purchaser should spend no more than 28% of their gross income on their mortgage payment.

Fifteen years ago, prices were high, wages were low, and mortgage rates were over 6%. We remember buying our first home and the rate was 14%!

Today, prices are still high. Wages, however, have increased, and the mortgage rate, even after the recent spike, is still well below 6%. That means the average purchaser today pays less of their monthly income toward their mortgage payment than they did back then.

In the latest Affordability Report by ATTOM Data, Chief Product Officer Todd Teta addresses that exact point: “The average wage earner can still afford the typical home across the U.S, but the financial comfort level zone continues to shrink as home prices keep soaring and mortgage rates tick upward.”

Affordability isn’t as strong as it was last year, but it’s much better than it was during the boom. Here’s a chart showing that difference:

4 Simple Graphs Showing Why This Is Not a Housing Bubble | MyKCM

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2. Mortgage Standards Were Much More Relaxed During the Boom

During the housing bubble, it was much easier to get a mortgage than it is today. As an example, let’s review the number of mortgages granted to purchasers with credit scores under 620. According to credit.org, a credit score between 550-619 is considered poor. In defining those with a score below 620, they explain: “Credit agencies consider consumers with credit delinquencies, account rejections, and little credit history as subprime borrowers due to their high credit risk.”

Buyers can still qualify for a mortgage with a credit score that low, but they’re considered riskier borrowers. Here’s a graph showing the mortgage volume issued to purchasers with a credit score less than 620 during the housing boom, and the subsequent volume in the 14 years since.

4 Simple Graphs Showing Why This Is Not a Housing Bubble | MyKCM

Mortgage standards are nothing like they were the last time. Purchasers that acquired a mortgage over the last decade are much more qualified. Let’s take a look at what that means going forward.

3. The Foreclosure Situation Is Nothing Like It Was During the Crash

The most obvious difference is the number of homeowners that were facing foreclosure after the housing bubble burst. The Federal Reserve has a report showing the number of consumers with a new foreclosure notice. Here are the numbers during the crash compared to today:

4 Simple Graphs Showing Why This Is Not a Housing Bubble | MyKCM

There’s no doubt the 2020 and 2021 numbers are impacted by the forbearance program, which was created to help homeowners facing uncertainty during the pandemic. However, there are fewer than 800,000 homeowners left in the program today, and most of those will be able to work out a repayment plan with their banks.

Why are there so few foreclosures now? Today, homeowners are equity rich, not tapped out.

This suggests that the forebearance equals foreclosure narrative pushed by many so called experts and news network talking heads was incorrect.

In the run-up to the housing bubble, some homeowners were using their homes as personal ATM machines. Many immediately withdrew their equity once it built up. When home values began to fall, some homeowners found themselves in a negative equity situation where the amount they owed on their mortgage was greater than the value of their home. Some of those households decided to walk away from their homes, and that led to a rash of distressed property listings (foreclosures and short sales), which sold at huge discounts, thus lowering the value of other homes in the area.

Homeowners, however, have learned their lessons. Prices have risen nicely over the last few years, leading to over 40% of homes in the country having more than 50% equity. But owners have not been tapping into it like the last time, as evidenced by the fact that national tappable equity has increased to a record $9.9 trillion. With the average home equity now standing at $300,000, what happened last time won’t happen today.

So, there will be nowhere near the same number of foreclosures as we saw during the crash.

4. We Don’t Have a Surplus of Homes on the Market – We Have a Shortage

The supply of inventory needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued price appreciation. As the next graph shows, there were too many homes for sale from 2007 to 2010 (many of which were short sales and foreclosures), and that caused prices to tumble. Today, there’s a shortage of inventory, which is causing the acceleration in home values to continue.

4 Simple Graphs Showing Why This Is Not a Housing Bubble | MyKCM

Inventory is nothing like the last time. Prices are rising because there’s a healthy demand for homeownership at the same time there’s a shortage of homes for sale.

According to the Cape Cod and Island Board of Realtors, inventory for last month was 256 single family homes. It was 300 in January 2021. In January 2020? The number was 1,397.

As a result, open houses are crowded again and multiple offer situations are frequent. At an Open House we had this past Saturday, more than 30 groups visited the property in just two the first hours! As a result, our sellers are considering multiple offers.

If you’re a buyer waiting for the bubble to burst or for the market to crash before making your move, you’re potentially going to have a long wait. Sellers sitting on the sidelines, should be thinking about getting into the game.

Curious about your options as either a buyer or seller? Let’s connect at 508-360-5664 or msennott@todayrealestate.com. We’re happy to answer your questions.

It’s important that you have the right information to make an educated and informed decision.

Have a good week…

Mari and Hank

How to Get Top Dollar for Your House

When you’re selling any item, you want to get the greatest profit possible. That happens when there’s a strong demand and a limited supply. In the real estate market, that time is right now. If you’re thinking of selling your house this year, here are two reasons why now’s the time to do so.

1. Demand Is Very Strong This Winter

recent article in Inman News notes: “Spring, the hottest time of year for homebuyers and sellers, has started early according to economists.”

And they aren’t the only ones saying buyers are already out in full force. That claim is backed up with data released last week by ShowingTime.

The ShowingTime Showing Index tracks the average number of monthly buyer showings on active residential properties, which is a highly reliable leading indicator of current and future trends for buyer demand. The latest index reveals this December was the most active December in five years (see graph below):

Want Top Dollar for Your House? Now’s the Time To List It. | MyKCM

As the data indicates, buyers have been very busy this winter. December 2021 saw even more showings than December of 2020, which was already a stronger-than-usual winter. We know this from personal experience and that of many of our colleagues.

2. Housing Supply Is Extremely Low

Each month, realtor.com releases data on the number of active residential real estate listings (listings currently for sale). Their most recent report reveals the latest monthly number nationally is the lowest we’ve seen in any January since 2017 (see graph below):

Want Top Dollar for Your House? Now’s the Time To List It. | MyKCM

One statistic to track available listings is by calculating the current month’s supply of inventory. A months supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace.

On Cape Cod, the monthly supply at the end of January was 0.7! That’s 231 homes for sale as compared to 519 a year ago.

For condos, the calculated monthly supply is 1.0. That’s available 90 units this January versus 206 in 2021.

The ratio of buyers to sellers favors homeowners right now to a greater degree than at any other time in history. Buyer demand is high and supply is low. That gives sellers an incredible opportunity.

But, buyers shouldn’t be discouraged as still record low interest rates will help them afford the homes that they’re seeking.

Curious about your options as either a buyer or seller? Let’s connect at 508-360-5664 or msennott@todayrealestate.com. We’re happy to answer your questions.

It’s important that you have the right information to make an educated and informed decision.

Mari and Hank

Is Multi-Generational Living an Option?

Whether it’s for financial or health-related circumstances, or simply because you’ve reached a new phase in your life, you might be wondering if living with multiple generations under the same roof is the right move. Many have have found themselves in similar situations and have found that living in a multigenerational home is a good idea.

What Is a Multigenerational Home?

The Pew Research Center defines a multigenerational household as a home with two or more adult generations. They include households with grandparents and grandchildren under the age of 25. As you weigh your options and decide if multigenerational living is right for you, here’s some helpful information including testimony from homeowners living with additional loved ones.

The Benefits of Multigenerational Living

A recent report from Generations United surveyed individuals living in a multigenerational setting and asked them about the key benefits of this arrangement. It says: “Nearly all Americans who live in multigenerational households (98%) feel their household functions successfully citing various aspects of home design, family relationships and interactions, and supports and services influencing their success.”

The study identifies some of the top benefits of this lifestyle including an improved financial situation, better mental and physical health, and strengthened bonds with loved ones.

Millions of Americans Have Discovered the Benefits of Multigenerational Households | MyKCM

Those are just some of the reasons why most people who decide to live in this situation find it worthwhile. As Donna Butts, Executive Director at Generations United, says: “Families may come together from need, but they are staying together by choice.”

With More Adults Living Under One Roof, You May Need More Space

If you decide to look for a multigenerational home, it’s important to understand what everyone will need to make the arrangement work to its fullest. Something that often makes the top of the list is additional space for privacy. This could mean more bedrooms and bathrooms or features like an in-law suite or a basement.

If you’re still living in a house with several bedrooms where you raised your family, but now only use just a few rooms, your property may be of interest to someone looking for a multi-generation setting. Marketing your home and taking advantage of the equity you have in your house could help you finance your next move to a smaller home or a condo.

Curious about multigenerational living and your options as either a buyer or seller? We’d be happy to answer your questions. Let’s connect at 508-360-5664 or msennott@todayrealestate.com.

It’s important that you have the right information to make an educated and informed decision.

Mari and Hank

Does the Weather Have You Thinking About Making a Change?

We’re more aware than ever of the effects weather, climate change and natural disasters can have on where we live. According to a report from realtor.com, more than 3 in 4 recent buyers took climate into account when deciding where to locate.

The study also found that many existing homeowners (34%) have already considered selling their houses and moving to a new location, because of the climate.

Many of us remember when we bought our homes on Cape Cod and were told we could play golf all year round, because it just didn’t snow that much.

If you’re a “snowbird,” are you spending more time at your other home, because the weather there seems to be better longer?

Or has our weather made you decide that it’s finally time to upsize, downsize or make that “someday” move whether on Cape or elsewhere?

Here’s some information to keep in mind if you’re thinking about marketing your Cape Cod home because of weather concerns.

Do Your Research

As a homeowner, it’s impossible to completely control what types of weather events your house is exposed to. Every area has its unique climate challenges.

So, the first step is understanding how to navigate your decision making process with your specific concerns in mind. For example, are you tired of the snow, but not crazy about high humidity and temperatures? Is easy transportation to family important? Is it time for a condo or do you still want a house with a yard? While getting the answers to these questions — and a multitude of others — can seem like a difficult undertaking, with the appropriate resources and experts on your side, you can simplify the process.

The Mortgage Reports provides some tips for making your next move, including, but not limited to: 1) Vet the location. 2) Research Climate Action Plans and learn if the community you’re interested in has one. 3) Work with professionals for additional assessments on a home’s ability to withstand the local weather. Maybe you’re moving away from the snow, but locating to an area that is prone to hurricanes.

Ultimately, your best resource throughout the process is a local real estate professional, who understands the area and has access to the experts, who can answer your questions.

And have no fear, there are plenty of buyers for your Cape Cod home. Most likely, many. With the record low number of houses available for sale right now, your property — if priced right — will attract interest and you’ll receive a good return on your investment that will help finance your next move.

Curious about your options? Let’s connect at 508-360-5664 or msennott@todayrealestate.com. We’re happy to answer your questions. Because of our involvement with the Tom Ferry organization, we can also assist you in finding a top notch real estate professional in the area you’re interested in.

It’s important that you have the right information to make an educated and informed decision.

…and for now, enjoy the snow!

Mari and Hank

Why Is the Housing Supply Still So Low?

The one question that’s top of mind for homebuyers as we start the new year is: why is it still so hard to find a house to buy? The truth is, we’re in the ultimate sellers’ market, so real estate is ultra-competitive  right now. The number of buyers searching for a home greatly outweighs how many homes are available for sale.

While low inventory in the housing market isn’t new, it’s a challenge that continues to grow over time. Here’s a look at two reasons why today’s supply is low and what that means if you’re looking to buy.

1. New Home Construction Has Fallen Behind Demand

The graph below shows new home construction for single-family homes over the past five decades, including the long-term average for housing units completed. Builders exceeded that average during the housing bubble (shown in red on the graph). The result was an oversupply of homes on the market, so home values declined. That was one of the factors that led to the housing crash back in 2008.

Since then, the level of new home construction has fallen off. For the last 13 straight years, builders haven’t been able to construct enough homes to meet the historical average (as illustrated in green on the graph). That underbuilding left us with a multi-year inventory deficit before the pandemic started.

Buyers Want To Know: Why Is Housing Supply Still So Low? | MyKCM

2. The Pandemic’s Impact on the Housing Market

The pandemic fueled a renewed appreciation and focus on the meaning of home. Having a safe space to live, work, learn, and exercise became even more important for Americans throughout the country. So, as mortgage rates dropped to at or below 3%, buyers eagerly entered the market looking to capitalize on those low rates and secure a home that would fulfill their changing needs. But, at the same time, sellers hesitated to put their houses on the market as concerns about the pandemic mounted.

The result? The number of homes available for sale dropped even further. On Cape Cod, the supply of available homes last month was 53% less than it was at the same time in 2020.

We ended the year with 14.7% fewer single family home sales in 2021 than 2020. (4,192 vs. 4,915). Median sales prices were up 26.6% over the same period. ($510,000 vs. 619,950).

Condominiums saw an 8.2% drop in sales (1,202 vs 1,104) and a 10.1% increase in median sales price. ($345,000 vs. $380,000).

What Does All of This Mean for You?

Buyers need to remember that low inventory doesn’t mean no inventory. If you want to find the home of your dreams, be sure that you’re pre-approved, have a clear idea of what you’re looking for, and have your home on the market if you need to sell it. (You just won’t be able to compete with buyers who are offering large down payments or paying cash, if you home isn’t even being marketed.)

There is also some good news. Experts are projecting more homes will become available thanks to sellers re-entering the market to take advantage of high returns on their investment or finally deciding that it’s time to get on with their lives.

Danielle Hale, Chief Economist at realtor.com, shares this hope, but offers perspective: “For buyers, the market is likely to continue to move fast. If you see a home you like, be right to jump on it right away.”

Today’s market is favoring sellers. If you have questions, we’d be happy to provide answers. Let’s connect at 508-360-5664 or msennott@todayrealestate.com to discuss your options. You need the right information to make an educated and informed decision about buying or selling in the year ahead.

Have a great week.

Mari and Hank

The Right Time to Sell Your Home

When Is the Right Time To Sell [INFOGRAPHIC] | MyKCM

Some Highlights

  • If you’re trying to decide when to list your house, the time is now. There are plenty of buyers eagerly waiting for your home to hit the market. Just this morning, one of our colleagues at our office team meeting reported 120 buyers attending her weekend open houses!
  • The latest data indicates home showings are rising after a holiday lull. There are more buyers than homes for sale right now. That means you’ll likely receive multiple offers, and your home won’t be on the market long. But, as of now, those over asking price offers don’t seem to be as head scratching as they were back in the summer.

For more information about the market here on Cape, please check out this video that we posted at the end of last week on our YouTube channel, Mari Sennott Plus.

Today’s market favors sellers. If you have questions, we’d be happy to provide answers. Let’s connect at 508-360-5664 or msennott@todayrealestate.com to discus your options. You need the right information to make an educated and informed decision about buying or selling in the year ahead.

Have a great week…

Mari and Hank

Five Tips for Making Your Best Offer for a Home

As 2021 ended, there seemed be a subtle shift in the Cape Cod real estate market. While many properties still received multiple offers, there weren’t as many as earlier in the year.

And while most successful offers were for above asking price, the final figures were not as head scratching as they were in the summer.

As a buyer in a sellers’ market, it can feel like you’re stuck between a rock and a hard place. How far over asking price should your offer be? How willing are you to get involved in a bidding war, even when the competition isn’t as challenging?

When you’re ready to make an offer on a home, remember these five easy tips to help you rise above the competition.

1. Know Your Budget

Knowing your budget and what you can afford is critical to your success as a homebuyer. The best way to understand your numbers is to work with a reputable lender so you can be pre-approved for a loan. As Freddie Mac puts it: “This pre-approval allow you to look for a home with greater confidence and demonstrates to the seller that you’re a serious buyer.”

As a practical matter, offers without pre-approval letters have little chance of being accepted. We work with several reputable lenders who serve the Cape Cod market and will pass on their contact information. Please reach out if you’re interested.

2. Be Ready To Move Fast

Homes are selling quickly in today’s competitive housing market. According to the Existing Home Sales Report from the National Association of Realtors (NAR): “Eighty-three percent of homes sold in November 2021 were on the market for less than a month.”

With houses selling this fast, staying on top of the market and moving quickly are key. Know what you’re looking for in a home and be ready to act when you see it.

3. Lean on a Local Real Estate Professional

No matter what the housing market looks like, rely on a trusted real estate advisor. As Freddie Mac advises: “Be sure to select experienced, trusted professionals who can help you make informed decisions and avoid any pitfalls.”

Real estate markets are different from area to area. Your uncle’s best friend’s godson who just got his license and works in western Massachusetts is probably not the best choice to help you buy (or sell) property on Cape Cod.

Cape-based based professionals have insight into what’s worked for other buyers here and what sellers may be looking for in an offer. It may seem simple, but catering to what a seller needs can help your offer stand out.

4. Make a Strong, but Fair Offer

According to the latest Realtors Confidence Index from NAR, 40% of offers today are above the list price. Submitting a strong, yet fair offer is critical in these situations. If you are really interested in a property, a low ball offer to “see what happens” is not a strategy for success.

Not all that long ago asking price was the most a seller could hope for. Now, it’s the minimum they expect.

5. Be a Flexible Negotiator

When putting together an offer, consider what options you have to make your proposal the most attractive. Can you be flexible with the closing date? Are you willing to let the seller leave behind furniture, even if you have no use for it?

Of course, there are certain contingencies you don’t want to give up. Freddie Mac advises resisting the temptation to waive the home inspection as you could move into a house and discover repairs that you can’t afford.

If you’re thinking 2022 is the year to make your move, we’d be happy to answer your questions. Let’s connect at 508-360-5664 or msennott@todayrealestate.com.

You need the right information to make an educated and informed decision about buying or selling in the year ahead.

Stay warm….

Mari and Hank

Expert Insights on the 2022 Housing Market

As we move into 2022, potential buyers and sellers are wondering, what’s next? Will the inventory of available homes increase? Will prices keep climbing? How high will mortgage rates go?

For the answer to those questions and a little more, let’s turn to the experts. Here’s a look at what they say we can expect in 2022.

Odeta Kushi, Deputy Chief Economist, First American: Consensus forecasts put rates at about 3.7% by the end of next year. So, that’s still historically low, but certainly higher than they are today.”
Danielle Hale, Chief Economist, realtor.com: “Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise. And with more than 45 million millennials within the prime first-time buying ages of 26-35 heading into 2022, we expect the market to remain competitive.”
Lawrence Yun, Chief Economist, National Association of Realtors (NAR): “With more housing inventory to hit the market, the intense multiple offers will start to ease. Home prices will continue to rise but at a slower pace.”
George Ratiu, Manager of Economic Research, realtor.com: “We also expect a growing number of homeowners to bring properties to market, taking some pressure off high prices and offering buyers more options.”
Mark Fleming, Chief Economist, First American: Strong demographic demand will continue to act as the wind in the housing market’s sails.”

What Does This Mean for Sellers?

Make no mistake – this sellers’ market will remain in 2022 as home prices on Cape Cod and elsewhere are projected to continue climbing — just at a more moderate pace. Selling your house while buyer demand continues strong will truly put you in the driver’s seat.

While multiple offers were still common at the end of the year on Cape, the money offered over list price was generally speaking not as head scratching as it was earlier in 2021.

So don’t wait too long. With more listings projected to be available, your ideal window of opportunity to stand out from the crowd won’t last forever.

In fact, Mari was out with a buyer on New Years Day! And the spring market is just around the corner.

What Does This Mean for Buyers?

Hope is on the horizon for 2022. You should see your options grow as more homes are listed and some of the peak intensity of buyer competition starts to ease.

Just remember, rising rates and prices are a great motivator for you to find the home of your dreams sooner rather than later so you can buy while today’s affordability is still in your favor.

Waiting for either prices to drop or a sudden rush of foreclosures that no one is predicting — except maybe your Uncle Harry “who knows a little something about real estate”– is not a successful strategy. It will only cost you money as prices continue to increase.

If you’re thinking 2022 is the year to make your move, we’d be happy to answer your questions. Let’s connect at 508-360-5664 or msennott@todayrealestate.com.

You need the right information to make an educated and informed decision about buying or selling in the year ahead.

Have a great week.

Mari and Hank