Key Takeaways
- The housing market will continue to favor those choosing to sell their homes now, but don’t expect to see last year’s appreciation values.
- Historic low housing inventory greets the Millennial generation, and rising mortgage rates for current homeowners may lessen overall supply and demand.
- Linda Craft & Team can help you act fast to lock in your dream home!
If you’re thinking about waiting until spring to get serious about selling your house, the chances are that many other homeowners will be one step ahead of you. With record-breaking home appreciation values, growing equity, low inventory, and high demand in today’s market, many homeowners have realized that they’re in the driver’s seat and are cashing in.
Now is the best time to begin the process of making sure your house is up-to-date and ready to be listed for buyers. Here’s why.
Home Values Come Down to Earth
When demand exceeds supply, prices go up. And so, when last year saw Americans making lifestyle changes, such as moving out of big cities and ushering in the era of remote work, they began demanding homes in record numbers, causing prices to soar. But unfortunately, those unparalleled appreciation values that homeowners experienced in 2021, with some being as high as 20 percent, will not repeat themselves in 2022.
This year, experts anticipate that the median appreciation value for homes across the U.S. will be a more modest five percent as the market settles down and the new normal that we all heard so much about becomes just that – normal.
If you are considering selling your home, this means that there is little evidence that waiting for a substantially greater appreciation in your home’s value will pay off.
A Tale of Millennials, Housing Inventory, and Mortgage Rates
As Millennials mature into their prime homebuying years, 2022 marks the entrance of the largest segment of the population into the U.S. housing market. And so, as we head into the spring season, typically the busiest time of year, there are a couple of factors hampering their pursuit of homeownership and the American Dream.
Historically, having a six-month supply of homes for sale is essential for a balanced market, ensuring that enough homes are available for active buyers:
Currently, Millennials are encountering a housing market that sits at a 2.4-month supply of homes, well below a neutral market.
While this explains the fierce competition over short housing supply that has driven home values higher, rising mortgage rates are now beginning to push down against those increasing home values and are causing some homeowners to sell.
Combined and co-occurring, these two forces have created an environment where Millennials may become discouraged from entering the market, for the time being. However, with predictions for new-housing construction forecasting a pick up in supply towards the end of the year, this will help lure many Millennials into the market.
We’re Here to Help!
Linda Craft & Team are experts at getting sellers top value for your homes. If you’re ready to make a move, contact us at 919.235.0007 to get started. We’re also passionate about helping buyers prepare for stepping into growth opportunities in the market. Here’s some frequent buyer questions, or you can contact us and we’ll talk you through your best options.