real estate market update Archives • Eastern Panhandle Martinsburg Charles Town Hedgesville Inwood Falling Waters Ranson Bunker Hill West Virginia Real Estate

Four Reasons Why Now’s a Good Time to Sell

While the housing market traditionally heats up with the weather, buyers are looking year-round. If you’re thinking about selling your home, here are a few reasons why now is a great time to get it on the market.

Appreciation. Your home’s value is based on the market, not the season. In the last few years, home values have increased by more than 20% in some areas, creating a significant profit for homeowners when selling.

Motivated buyers. Spring and summer are generally considered the “peak seasons” for real estate, but prospective home buyers that start shopping in January are serious, motivated and ready to buy.

Reduced competition. Inventory is already tight, and it can be even more restricted in the winter months. With fewer homes on the market, sellers face less competition. A home that’s in great shape and shows well will stand out.

Winter weather: Use colder temperatures to your advantage by making your home look and feel warm for showings with plenty of heat, warm lighting, a cozy fire and perhaps the smell of freshly baked cookies.

If you are considering selling your home, I’ll be happy to provide you with a comparative market analysis of your home’s value. Plus, I can offer advice on how to get your property ready for market and guide you throughout the entire selling process, no matter the time of year.

Alternatively, if you’re planning to buy a home, I can help you prepare so you’ll be ready to make a winning offer.

Best wishes for a happy, healthy new year!

Real Estate Market Predictions for 2023

Everything in the economy is cyclical and real estate is no exception. After a few robust years, 2022 brought the housing market to more normal (pre-Covid) levels, which we expect to continue in 2023. Here are a few more of the trends that my team at Long & Foster Real Estate and I expect to occur next year.

Home inventory will continue to be scarce but grow. The lack of listings has been severe for more than five years. Although real estate is hyper-local, demand is expected to wane in 2023, causing inventory—that is, the number of homes for sale—to expand because with fewer people buying, fewer homes will go under contract and off the market.

Mortgage rates are likely to continue to rise, then drop. Interest rates are likely to climb in the first part of 2023, until the Federal Reserve stops raising the federal funds rate to curb inflation. In fact, the Mortgage Bankers Association predicts that mortgage rates will drop to 5.4% in 2023. While that’s higher than the rock-bottom rates of the past few years, it’s lower than our current rates of about 6.5%.

Home values will hold steady. The National Association of Realtors predicts that prices won’t experience a major decline and could rise slightly in 2023. Many years of severely low inventory will prevent large home price declines.

Investors will benefit from real estate as a hedge against inflation. Over time, real estate investing brings steady returns, and as investors look to diversify their portfolios, real estate will rise to the spotlight as a way to hedge against inflation. In10 years or less, home prices that seem astronomical today, will seem like a bargain.

What these trends mean for you

If you’re planning on buying or selling a home in 2023, it’s important to put these trends into perspective and realize that the unique characteristics of your local market may not match these overriding predictions.

Working with a Long & Foster real estate professional like me with local market knowledge and industry expertise will help you reach your real estate goals in 2023.

No matter which way the real estate market turns, I’m proud to be affiliated with a financially strong and stable company that takes an integrated approach to real estate, so I can offer you all the services needed to buy, sell, rent, own and invest in real estate—from mortgage and title to insurance and moving.

Contact me today to get started on your journey home.

Long & Foster’s Third Quarter 2022 Real Estate Market Update

It’s hard to believe that we’re more than three quarters into 2022 and will soon ring in a new year. After a few years of a hot real estate market, you may wonder what’s happening now – especially if you’re planning to buy or sell a home in the next few months.

In 2020 and 2021, low interest rates, remote working opportunities facilitated by the pandemic, and low housing inventory created the perfect storm of buyers flooding to the market to purchase a home. Homes were selling quickly and for more than asking price. Recently, though, interest rates have started to rise and that has caused the market to shift to a more normalized pace—like what we experienced in the years before the pandemic.

To give you more insights, our team at Long & Foster has prepared a short market update comparing the third quarter of 2022 with the same period the last few years across our footprint.

Fewer homes were sold in the third quarter of 2022 than prior years. The number of properties sold this year was down 17% compared to the same period last year, but it was close to the number of properties sold in 2019.

Those properties that did sell this past quarter were more expensive. While fewer homes sold, those that did had an average sale price that was 7% higher than during the same time in 2021.

And they sold in about the same amount of time. On average, homes were on the market 22 days before they went under contract—that’s one day more than last year’s average days on market, but many days fewer than before the pandemic.

We’re shifting to a more balanced real estate market, and it remains a great time to buy or sell a property. At Long & Foster, we’ve been through many market cycles and are here to help you achieve success no matter the market conditions.

It’s important to remember that real estate is hyperlocal and if you have any questions about the market in your neighborhood, call, text or email me. Likewise, if you or anyone you know is planning to buy or sell a home, I’m always available to help them with all of their real estate needs.

All the best to you for a happy November.

Even with Rates Rising, Here’s Why it’s a Good Time to Buy Versus Rent

Choosing to become a homeowner is generally one of the biggest decisions of your life. It’s a financial and emotional decision that must be made based on your individual circumstances. But if sky-high rent increases have you leaning toward the security of owning your home, here’s why it’s a good time to buy.

What’s Happening in the Rental Market?

Rental costs have grown at their fastest pace in more than three decades. The national median cost of a monthly rental is now over $2,000 for the first time ever. Rent has increased over 30% in some of the major cities and are expected to continue to rise sharply into 2023.

Why it’s a Good Time to Buy

After several years of a hot seller’s market, conditions are shifting to a more balanced market.

Mortgage Rates Rise, But Still Historically Low. Although interest rates have risen to over 5%, they’re still at historic lows. Mortgage demand has dipped to its lowest in 22 years, causing far fewer buyers than we’ve seen recently, reducing competition for homes.

Price Adjustments. While 50% of the homes for sale in the Mid-Atlantic had a price adjustment at some point, you might still have to make a quick offer if the house you’re looking at is competitive.

More Homes for Sale. After years of not enough homes on the market, housing inventory is up almost 20%, creating buying opportunities.

Financial Benefits of Owning a Home

Hedge Against Inflation: Homeownership provides stability. With a fixed rate mortgage, your monthly payment can be locked in, which is especially important in today’s inflationary environment.

Pay Your Mortgage (Not Your Landlord’s Mortgage): As you pay your mortgage, its balance is reduced, building equity in the property.

Appreciation. While every market is different, home values have historically appreciated about 4% annually. Plus, you enjoy appreciation on the total price of the home, not just the cash you put down.

Tax benefits. Your tax advisor can help determine eligible tax deductions, which generally include mortgage interest and property taxes.

The net benefits of paying a mortgage often outweigh the monthly rent you’ll pay – and as a homeowner, you’ll have a valuable asset.

If you’re trying to decide whether to buy a home or continue renting, we can help you explore your options. Likewise, if you, your friends or family are buying or selling a home, don’t hesitate to reach out.

The Difference Between Today’s Shifting Market and the 2008 Housing Crisis

About 15 years ago, we experienced a housing crisis. Unfortunately, at that time, many Americans lost their homes and real estate investments. Although our current market is shifting, homeowners need not worry that history will repeat itself. The factors affecting today’s housing market are vastly different than they were in the mid to late 2000s.

The 2008 Housing Crisis – What Happened?

Relaxed lending standards caused high buyer demand but led to an inability to repay mortgage loans as many obtained loans that would not qualify under today’s lending standards. Homes fell into foreclosure when borrowers could no longer make their mortgage payments and with no equity in their homes, they were unable to sell.

The 2022 Market Shift – What’s Happening Now?

There are stricter lending guidelines in place and that, combined with low rates, high demand, and plenty of home equity (less than two percent of homes with mortgages have negative equity today), create opportunities for both buyers and sellers.

How The Two Are Different

The conditions surrounding the 2008 housing crisis limited the options for those who could no longer afford their mortgage payments. Today, the vast majority of sellers have the advantage of positive home equity, as well as low mortgage rates and high buyer demand.

If you, your friends or family are thinking about buying or selling a home, I am always available to help or answer any questions about current market conditions.

Enjoy August!

An Update on the Changing Real Estate Market

There’s been so much news lately relating to the economy and real estate. If you’re planning to buy or sell a home soon, you may be wondering what it means for you. The housing market, which received a boost from record low interest rates during the Covid-19 pandemic, has begun to shift.

The Arrival of a More Balanced Market

With mortgage interest rates and home prices on the rise, we expect the housing market will continue to cool from the surge in demand we’ve seen the last few years. As a bright spot for frustrated homebuyers, the number of homes on the market is expected to increase, bringing back a more balanced market.

For homeowners interested in selling, it’s still a great time to put your property on the market because the supply of homes available remains at record low levels. Even if sales decline from last year, the real estate market is on track for an overall good year.

To stay updated on what’s happening in your market, feel free to contact me. As always, if you, your friends, or your family are planning to buy or sell a home, I’m available to help guide you through the process.

Have a wonderful July.

Real Estate as a Hedge Against Inflation

With the recent stock market volatility, inflation and all that’s going on in the world, you may be looking for opportunities to diversify and protect your investment portfolio. Over the long term, real estate provides steady appreciation and is usually an excellent investment response to inflation. Savvy consumers are becoming increasingly interested in owning property to get the many benefits that help offset stock market volatility and inflation.

Even with the recent uptick of mortgage interest rates, real estate is still considered a safe haven to add to one’s investment mix. Here’s a look at several of the potential benefits of diversifying your portfolio into real estate.

Appreciation. While every market is different, home values have historically appreciated approximately 4% annually. Plus, as real estate is a leveraged investment, you enjoy appreciation on the total price of the home, not just the cash you put down to purchase it.

Tax benefits. Your tax advisor can help determine eligible tax deductions on an investment property, which generally include mortgage interest, property taxes, depreciation and operating costs, such as repairs and maintenance.

Tenant-paid mortgage. As your tenant pays rent, your mortgage balance is reduced, building equity in the property for a future sale or to borrow against and buy another property.

Cash flow. Depending on expenses, you can usually generate positive cash flow from the rent you charge.

If you’re thinking about investing in real estate, I can help evaluate investment properties that fit your financial goals. In addition, my Long & Foster partners in mortgage, title, insurance and property management are here to assist you every step of the way.

Wishing you and your family a great spring!

MARKET UPDATE – SEPTEMBER 2021

As summer comes to a close, with school starting, and fall just around the corner, September brings a time of transition. If you’re thinking about selling your home, you may be hearing reports of inventory trickling back on the market in some locations and bidding wars appearing to be slightly less common.

Here’s some insight on why it’s still a great time to sell your home.

One Month Does Not Make a Market Trend

The operative word is trickle. Housing inventory has been declining for six years, so rather than comparing month-to-month data, we look at the industry over a 10-year span. Although inventory and days on market are trickling up in some markets and the number of multiple offers are trickling down, there are still multiple offers, low inventory, homes selling in less than 30 days, and for top dollar.

Buyers Re-entering the Market

Some buyers may have taken a summer break from looking for a home after losing five, six, seven, or more deals last spring. We believe buyers re-entering the market after Labor Day are likely to cause a buying surge in the fourth quarter of this year.

Significant Appreciation

Although median sale prices have increased by an average of more than 20% over the last year in our market, we don’t believe this level of appreciation will last forever. Affordability for buyers is still very attractive due to interest rates remaining under 3%, as they tend to buy monthly payment, rather than price.

Declutter, Stage, and Price Right

Homes receiving high and multiple offers over the past year were staged, decluttered, in good condition, and priced right – which are all still necessary in this market. Buyers used to have a vision for what they want the home to be after settlement. Now, the majority of consumers seem to want move-in ready. Many buyers don’t have the time or capital to invest in renovations and want to move in and start living.

If you’re planning to sell a home this Fall, it’s essential to have a knowledgeable real estate agent advise you on the best ways to prepare your home for sale to maximize your investment.

To find out your home’s value or for questions about this complex real estate market, please feel free to contact the Butch Cazin Team.

August 2021 Market Update

It’s a Seller’s Market – and Here’s Why it’s Also a Great Time to Buy.

Lately, many of the real estate headlines are about how it’s the best time in history to sell your home. While that’s true, here are a few good reasons why it’s also a great time to buy.

Interest rates are at all-time lows.

People buy payment; they don’t buy price. They don’t necessarily care how much a house costs, but they care about how much it will cost them per month. You are going to get more money lent to you now, with less to repay than you would when rates go up.

For example, a person with a $300,000 loan at today’s interest rates of 3% would pay $750 less per month in interest than they did in 2000 when interest rates were 8%. I can think of many other things to do with $750 per month than give it to the bank.

Benefits include tax breaks, building equity, and hedging inflation.

Many home buyers who have made their third, fourth or fifth offers on homes with no success may be getting discouraged, as they see home prices rising and are concerned they’re paying too much.

However, real estate values tend to run in ten-year cycles, with appreciation of 3% per year. Home values were cut in half during the 2008 financial crisis. Now, more than ten years later, they are ahead. Prices recover, equity is built, and real estate is an excellent hedge against inflation.

As a real estate professional, my job is to disarm and interpret the news for you so you might make informed decisions and help you navigate this competitive housing market to successfully fulfill your real estate goals.

If you’re planning to buy or sell a home or have questions about this real estate market, please feel free to contact The Butch Cazin Team. We look forward to helping you!

Market Update – June 2021

Selling a home in 2021 can be easy, but buying one is a whole different story. Low interest rates continue to be the driver in this robust housing market, creating increased buying power. On the other hand, the limited number of homes for sale and the high level of buyer demand has created a market tilted heavily in favor of sellers.

In this highly competitive market, what do you do if you want a smooth transition when selling and buying a home concurrently? It’s one of the least risky times to buy your next home before selling your current home. If you’re able to handle the payments on two homes for six months or so, then buy first and sell later.

For those that may not have the funds available to purchase a home while owning one, here are some options to consider.

Home of Choice Contingency. Written into the contract, this agreement protects the seller from having to sell their current home before finding their next home.

Rent Back Agreement. This post-closing occupancy agreement allows the seller to continue to live in the home for a fee or for free, typically up to 60 days, temporarily making the buyer the landlord.

Bridge Loan. A bridge loan enables you to borrow money to pay for the down payment on your next home based on the equity in your current home.

Home Equity Line of Credit. Tap into the equity of your current home by taking out a home equity loan before you put your home on the market to provide the funds needed to make your purchase first.

In this market, whether you’re buying or selling a home, I can help evaluate your options to decide which to do first and how to optimize both transactions.

My best to you and your family.