Tag Archives: #millenials

Top Questions About Selling Your Home During the Holidays

In our blog two weeks ago, we made the suggestion that you should consider selling your home before or during the holidays.

That led to several questions.

1. But, doesn’t it make more sense the wait?

Even though the supply of homes for sale has increased in 2022, inventory is still low overall. That means it’s still a sellers’ market. The graph below helps put the inventory growth into perspective. Using data from the National Association of Realtors (NAR), it shows just how far off we are from flipping to a buyers’ market:

Top Questions About Selling Your Home This Winter | MyKCM

While buyers have regained some negotiation power as inventory has grown, you haven’t missed your window to sell. Your house could still stand out since inventory is low, especially if you list now while other sellers hold off until after the holiday rush and the start of the new year.

On Cape Cod, we have a 2.2 months inventory of homes which means that if nothing else would become available, it would take 2.2 months to exhaust the supply. A “normal” market is considered six months.

2. Are there buyers still out there?

If you’re thinking of selling your house but are hesitant because you’re worried buyer demand has disappeared in the face of higher mortgage rates, know that isn’t the case for everyone. While demand has eased this year, millennials are still looking for homes. As an article in Forbes explains:

At about 80 million strong, millennials currently make up the largest share of homebuyers (43%) in the U.S., according to a recent National Association of Realtors (NAR) report. Simply due to their numbers and eagerness to become homeowners, this cohort is quite literally shaping the next frontier of the homebuying process. Once known as the ‘rent generation,’ millennials have proven to be savvy buyers who are quite nimble in their quest to own real estate. In fact, I don’t think it’s a stretch to say they are the key to the overall health and stability of the current housing industry.”

While the millennial generation has been dubbed the renter generation, that namesake may not be appropriate anymore. Millennials, the largest generation, are actually a significant driving force for buyer demand in the housing market today. If you’re wondering if buyers are still out there, know that there are still people who are searching for a home to buy today. And your house may be exactly what they’re looking for.

3. If I sell, can I afford to buy my next home?

If current market conditions have you worried about how you’ll afford your next move, consider this: you may have more equity in your current home than you realize.

Homeowners have gained significant equity over the past few years and that equity can make a big difference in the affordability equation, especially with mortgage rates higher now than they were last year. According to Mark Fleming, Chief Economist at First American: “. . . homeowners, in aggregate, have historically high levels of home equity. For some of those equity-rich homeowners, that means moving and taking on a higher mortgage rate isn’t a huge deal.” 

For us, that meant that we were able this spring to use our equity to make a significant down payment on our new home, then market our old one. We didn’t have a home sale contingency in the offer to purchase our new home.

If you’re intrigued about the idea of selling your house before year’s end, let’s connect at 508-360-5664 or msennott@todayrealestate.com to review your options. Remember: your home never looks better (or is more marketable) than during the holidays.

Thursday is Thanksgiving and we would be remiss if we did not wish everyone a blessed and memorable day. We’ve all come to appreciate this holiday more because we lost the chance to celebrate it during the height of the pandemic. So we hope you enjoy the chance to spend time with family and friends.

Mari and Hank

Is the Boom Over?

If you’re following the news, all of the headlines about conditions in the current housing market may be leaving you with more questions than answers. Is the boom over? Is the market crashing or correcting? Here’s what you need to know.

The housing market is moderating compared to the last two years, but what everyone needs to remember is that the past two years were record-breaking in nearly every way. Record-low mortgage rates and millennials reaching peak homebuying years led to an influx of buyer demand. At the same time, there weren’t enough homes available to purchase thanks to many years of underbuilding and sellers who held off on listing their homes due to the health crisis.

This combination led to record-high demand and record-low supply, and that just wasn’t going to be sustainable for the long term. The latest data shows early signs of a shift back to the market pace seen in the years leading up to the pandemic – not a crash nor a correction.

Home Showings Then and Now

The ShowingTime Showing Index tracks the traffic of home showings according to agents and brokers. It’s a good indication of buyer demand. Here’s a look at that data going back to 2019 (see graph below):

Is the Housing Market Correcting? | MyKCM

The 2019 numbers give a good baseline of pre-pandemic demand (shown in gray). As the graph indicates, home showings skyrocketed during the pandemic (shown in blue). And while current buyer demand has begun to moderate slightly based on the latest data (shown in green), showings are still above 2019 levels.

And since 2019 was such a strong year for the housing market, this helps show that the market isn’t crashing – it’s just at a turning point that’s moving back toward more pre-pandemic levels.

Based on our own experience and that of our colleagues we can say that not every Open House has lines of potential buyers stretching down the driveway, as was the case not that long ago. Appropriately priced homes still attract a crowd, but buyers have become a bit more discerning. Houses whose asking price aren’t realistic because of condition or location are getting less attention when they might have a year ago.

What we are seeing — and again, this is anecdotally — are some homes becoming available to see if they will sell at some crazy price, because buyers are thought to still be “desperate.” But, there’s not much interest.

Existing Home Sales Then and Now

The headlines are also talking about how existing home sales are declining, but perspective matters here, as well. Let’s look at existing home sales going all the way back to 2019 using data from the National Association of Realtors (NAR) (see graph below):

Is the Housing Market Correcting? | MyKCM

Again, a similar story emerges. The pandemic numbers (shown in blue) beat the more typical year of 2019 home sales (shown in gray). And according to the latest projections for 2022 (shown in green), the market is on pace to close this year with more home sales than 2019 as well.

It’s important to compare today not to the abnormal pandemic years, but to the most recent normal year to show the current housing market is still strong. First American sums it up like this: “…today’s housing market looks a lot like the 2019 housing market, which was the strongest housing market in a decade at the time…”

Housing sales statistics for May have just been released by the Cape Cod and the Islands Board of Realtors and show that YTD the median sales price for a single family home is $690,000.00. (The YTD number one year ago was $607,000.00) New listings YTD are 1,613 compared to 1,836 in 2021.

New listings in May numbered 468. Last May there were 511. Months of housing supply in May is 1.4. In January it was 0.7 meaning more homes are coming on the market. This trend is expected to continue, but we have a long way to go to reach the more than five months supply we had pre-pandemic when good houses were available for sale for more than 100 days.

If recent headlines are concerning you and you’re thinking about buying, selling or both, look at a more typical year for perspective. The current market is not a crash or correction. It’s just a turning point toward more typical, pre-pandemic levels.

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 correct information before making a decision.

…and remember, we just sold our house of 28 years and moved to a smaller property. So, we get it.

Have a great week…

Mari and Hank