Tag Archives: #localrealtorlocalknowledge

What’s Next for Home Prices

Whether you’re a potential homebuyerseller, or both, you’re probably wondering: will home prices fall this year? So, let’s take a look at what the real experts are saying and why this matters for your homeownership goals.

Last Year’s Rapid Home Price Growth Wasn’t the Norm

In 2021, home prices appreciated quickly. One reason is because record-low mortgage rates motivated more buyers to enter the market. As a result, there were more people looking to make purchases than there were homes available for sale. That led to competitive bidding wars which drove prices up. CoreLogic helps explain how unusual last year’s appreciation was: “Price appreciation averaged 15% 2021, up from the 2020 average of 6%”

In other words, the pace of appreciation in 2021 far surpassed what the market saw in 2020. And even that appreciation was greater than the pre-pandemic norm which was typically around 3.8%. This shows that 2021 was an anomaly in the housing market spurred by more buyers than homes for sale.

Home Price Appreciation Is Moderating

Home price appreciation is now slowing (or decelerating) from the feverish pace the market saw over the past two years. According to the latest forecasts, experts say on average, nationwide, prices will still appreciate by roughly 10% in 2022 (see graph below):

What Does the Rest of the Year Hold for Home Prices? | MyKCM

On Cape Cod, the median sales price for a single family home was up 14.3% this July when compared to last. Year-to-date the median price is up 14.9% over 2021. That’s on the high end of what’s predicted, but within range of what the experts are saying.

Why do all of these experts agree prices will continue to rise? It’s simple. Even though housing supply is growing today, it’s still low overall thanks to several factors, including a long period of underbuilding homes. And experts say that’s going to help keep upward pressure on home prices this year. Additionally, since mortgage rates are higher this year than they were last year, buyer demand has slowed.

As the market undergoes this change, this year’s true price appreciation won’t match the feverish pace in 2021. But the rapid appreciation the market saw last year wasn’t sustainable anyway.

What Does That Mean for You?

Today, the market is beginning to move back toward pre-pandemic levels. But even the forecast for 10% home price growth in 2022 is well beyond the 3.8% that’s more typical for a normal market.

So, despite what you may have heard on your favorite cable TV news channel or from your mother’s cousin Gretchen, who had her real estate license 20 year ago , the actual experts say home prices won’t fall in most markets. They’ll just appreciate more moderately.

If you’re worried that the house you’re trying to sell or the home that you want to buy will decrease in value, you should know the experts aren’t calling for depreciation in most markets, just deceleration. That means your home should still grow in value, just not as fast as it did last year. Real estate remains one of the best long term financial investments available.

Bottom Line

If you’re thinking of making a move, you shouldn’t wait for prices to fall. Experts say nationally, prices will continue to appreciate this year, just at a more moderate pace.

Still on the fence about selling? With the market cooling, you’ve arguably lost money by waiting. You’ll still receive a very nice price for your home, but possibly not what your neighbor received eight months ago when there were bidding wars.

Curious about your options? Let’s connect at 508-360-5664 or msennott@todayrealestate.com. We’ll share with you the latest market data, as well as our experience this spring as sellers and buyers.

Finally, please be patient with our local merchants and their employees. Many businesses remain understaffed and are doing the best they can to serve you as efficiently as possible. Being told at a restaurant that there’s a 30 minute wait when you see open tables simply means they don’t have the staff to properly serve you. It’s better to not seat you, than have you sitting at a table getting frustrated over the “lousy service” and posting negative comments on social media. Thanks…

Mari and Hank

Why People Are Making Their Move

Many were surprised when during the height of the pandemic, the housing market remained strong. In fact, it’s credited with getting the country’s economic engine moving again.

You also may remember that many so called experts, well-meaning observers, and not so well-intentioned TV talking heads were predicting disaster. But, the people who were truly familiar with the housing market were urging calm and saying that things would be fine.

Just like now.

“Those who know” are once again looking at the current economic situation and raising doubt about today’s shifting market and questioning what it means for consumers.

While mortgage rates are higher than they were at the start of the year and home prices are rising, you shouldn’t put your plans on hold based solely on market factors. Instead, it’s necessary to consider why you want to move and how important those reasons are to you. Here are two of the biggest personal motivators driving people to buy homes today.

A Need for More Space

Moving.com looked at migration patterns to determine why people moved to specific areas. One trend that emerged was the need for additional space, both indoors and outdoors. (Something that Cape Cod can certainly provide.)

Outgrowing your home isn’t new. If you need office space, crave a large yard, more room to entertain, or just need additional storage areas or bedrooms overall, having the physical space you need for your desired lifestyle may be reason enough to make a change.

A Desire To Be Closer to Loved Ones

Moving and storage company United Van Lines surveys customers each year to get a better sense of why they move. Their latest survey finds that nearly 32% did so to be closer to loved ones.

A similar company, Pods, also highlights this as a top motivator for why people move. They note that an increase in flexible work options has helped many homeowners make a move closer to the people they care about most.

According to Pods: “a shifting of priorities has also affected why people are moving. Many companies have moved to permanent remote working policies, giving employees the option to move freely around the country, and people are taking advantage of the perk.”

If you can move to another location because of remote work, retirement, or any other reason, you could leverage that flexibility to be closer to the most important people in your life. Being nearby for caregiving and or just seeing those who are important to you on a regular basis could be exactly what you’re looking for.

What Does This Mean for You?

As a seller, especially if you need to downsize, there is a strong demand for your property. Open Houses for typical three bedroom, two bath “family” homes continue to be popular and often result in multiple offers.

If you’re a buyer, sitting on the fence waiting for prices to go down or the market to crash is no more than wishful thinking that is costing you money. Reputable experts — not the alleged ones posting on Facebook — say that prices will moderate, but not drop.

Selling and buying a home is a very personal decision. (We just did both.) But, if there’s one universal lesson from the pandemic it is that life does indeed go on. In the face of genuine tragedy and not insignificant logistical challenges, people nonetheless decided to make their move, whether for work, finances, or personal situations.

Is this your time? Let’s connect at 508-360-5664 or msennott@todayrealestate.com to review your options. We’ll provide you with the most up-to-date market data, as well as share our own experience as recent sellers and buyers.

We hope that you continue to be safe during the heatwave. Please pay special attention to those kids (and adults) who may not be familiar with the water, but will jump in stay cool. Thanks.

Best regards,

Mari and Hank

What Do Supply and Demand Tell Us About Today’s Housing Market?

There’s a well-known economic theory – the law of supply and demand – that explains what’s happening with prices in the current real estate market. Put simply, when demand for an item is high, prices rise. When the supply of the item increases, prices fall. Of course, when demand is very high and supply is very low, prices can rise significantly.

Understanding the impact of both supply and demand can provide answers to a few popular questions about today’s housing market:

  • Why are prices rising?
  • Where are prices headed?
  • What does this mean for homebuyers?

Why Are Prices Rising?

According to the latest Home Price Insights report from CoreLogic, home prices have risen 18.1% since this time last year. But what’s driving the increase?

Recent buyer and seller activity data from the National Association of Realtors (NAR) helps answer that question. When we take NAR’s buyer activity data and compare it to the seller traffic during the same timeframe, we can see buyer demand continues to outpace seller activity by a wide margin. In other words, the demand for homes is significantly greater than the current supply that’s available to buy.

Where Are Prices Headed?

The supply of homes for sale will greatly affect where prices head over the coming months. Many experts forecast prices will continue to increase, but they’ll likely appreciate at a slower rate.

Buyers hoping to purchase the home of their dreams may see this as welcome news. In this case, perspective is important: a slight moderation of home prices does not mean prices will depreciate or fall. Price increases may occur at a slower pace, but experts still expect them to rise.

Five major entities that closely follow the real estate market forecast home prices will continue appreciating through 2022 (see graph below):

What Do Supply and Demand Tell Us About Today’s Housing Market? | MyKCM

What Does This Mean for Homebuyers?

If you’re waiting to enter the market, because you’re expecting prices to drop, you may end up paying more in the long run. Even if price increases occur at a slower rate next year, prices are still projected to rise. That means the home of your dreams will likely cost even more in 2022.

The truth is, high demand and low supply are what’s driving up home prices in today’s Cape Cod housing market. And while prices may increase at a slower pace in the coming months, experts still expect them to rise.


As we mentioned in our previous post, we were in Dallas last week attending Success Summit 2021 sponsored by the Tom Ferry organization. Ferry is the leading real estate coach and trainer in the country. We’ve been participating in individual business coaching and Ferry events for several years.

We have a lot of information to review, but one take away is the lure of discount realtors, who appear to offer sellers lower fees than traditional real estate brokerages. It’s important that sellers hoping to save money look beyond commission and be sure they understand the additional monies that can be charged — like fees per showing and open house or for advertising– which can push final costs to equal or more than a traditional commission.

As always, we’re happy to answer your questions about the housing market. We can connect at 508-568-8191 or msennott@todayrealestate.com.

Have a great week…

Mari and Hank


Buyers Shopping Outside Urban Areas

Over the last several weeks, we’ve been sharing with you reports that in the wake of the virus crisis buyers are looking to move to more open spaces. Here’s more evidence of this apparent shift in buyer behavior.

According to the industry newsletter HousingWire, new data released last week by realtor.com showed that listing views in suburban ZIP codes grew 13% in May, nearly doubling the pace of growth in urban areas.

“After several months of shelter-in-place orders, the desire to have more space and the potential for more people to work remotely are…contributing to the popularity of the ‘burbs,” explained Javier Vivas, director of research for realtor.com.

“Suburban interest in May outpaced last year’s July peak, which could indicate even stronger interest in the suburbs as the summer home-buying season continues to heat up,” he added.

This is good news for Cape Cod homeowners, who have been thinking about selling their property. With inventory still below last year’s levels, competition should be strong for well priced and effectively marketed homes.

If you’re undecided as to whether this is the right time for you to jump into the current market and upsize, downsize or move to that “someday” neighborhood, we’d be happy to assist you in reviewing your options. We can meet virtually or at a safe distance. Let’s connect at 508-568-8191 or msennott@todayrealestate.com.


Industry standards have changed regarding Open Houses. This graphic lists some of the new procedures that are being adopted across the country in consultation with sellers.

At Today Real Estate, we’ve been working in pairs during an Open House.

One person stays outside collecting information for contact tracing and sharing details about the property, while the other is stationed inside conducting tours and insuring that appropriate protocols are followed. Only one buyer and/or family is allowed in the house at a time to further insure everyone’s safety.

Masks are required at all times. Booties and other precautions are at the discretion of the homeowner.


Just a reminder that if you’re thinking about selling or buying, our summertime guides are now available. Please visit our secondary website and click on the option for either guide in the banner. (Or maybe both??). They’re delivered via email. If you have any questions after reviewing a guide, please don’t hesitate to contact us. (508-568-8191 or msennott@todayrealestate.com)

Thanks…

Stay healthy. Stay optimistic.

Mari and Hank