With a new round of property marketing forecasts released recently, buyers and sellers of property are trying to figure out what’s around the corner for American real estate.
For many, this year has been characterized by high mortgage rates, stable prices, and slow sales as buyers sit on the sidelines, fearing they might pay more than market value.
Now, all that is set to change.
Rates for 30-year fixed mortgages have dipped into the mid-6.5% range after the Federal Reserve has 0.5% of its target cash rate to stimulate the property market and the economy.
The latest housing forecast from realtor.com predicts buyers will be able to secure a mortgage for as low as 6.3% by the end of the year.
Danielle Hale, realtor.com’s head economist, said the Fed’s cut represents the “long-awaited mortgage rate relief”.
Movement in rates should give the market impetus. Buyers will have a little more cash available, and sellers will be happier to negotiate instead of holding the line on their price expectations.
Another prediction from realtor.com is that prices will rise 4.6% by early 2025. In June, the market recorded a record-high median for the sale of existing homes.
The number of properties for sale could increase 14.5% in the short term. On a year-on-year basis, housing stock for sale was up 35% in the first half of 2024 compared with 2023.
If you’re considering putting your property on the market today, here are some recommendations on attracting buyers.
- Price Point: Don’t overprice your home. A price that buyers believe represents good value can trigger bidding wars. However, if you shoot too high, all your potential buyers will step away. Work with your agent to find the sweet pot. And I’ll be delighted to help you.
- Negotiation Strategy: With momentum returning to the market, you may receive multiple offers. Get clarity on your pricing bottom line and how much you value flexibility around settlement timelines, various contingencies, and financing terms.
- Play to Your Strengths: Showcase your home’s unique features. Emphasize upgrades, improvements, and desirable features that will make your home memorable.
- Take Time: Don’t leap at the first offer you receive. Take your time to see who else might express interest. The market can move quickly, and in a matter of weeks, you might find that your home’s value has increased by several thousands of dollars.
- Contingency Alert: Many sellers welcome a buyer’s decision to waive a contingency, such as passing a pest inspection. Regardless of why a buyer might do that, you should carefully consider any legal ramifications if the buyer finds a problem once the deal is done. Could you be held liable if it’s claimed you concealed information?
- Be A Pro: Being courteous when engaging with buyers is critical. Don’t take negotiations personally. Working with your agent, you will find a positive and collaborative approach will achieve the best deal.