Dear Friends and Clients —
Summer is here, which means the high season for real estate.
If you’ve been thinking of selling your home, you might be in for a golden moment.
But be aware it might not last long.
Let me explain why, with a few nationwide details of the current real estate market.
Right now, homes are selling in record time. This May, it took just 34 days for a home to go under contract, which broke last year’s record of 36 days.
Home prices also continue to rise. In fact, they’ve been rising for six straight years, and for the past two years, this growth has been accelerating.
As a consequence, 27.6% of the homes sold in May sold above their listing price.
All this is due to a woefully short supply of homes on the market. In fact, the total supply of homes is 5.4% lower this year than the same time last year.
However, the real estate market might be on the cusp of change.
For one thing, mortgage rates have been rising, and now stand near their highest levels in seven years. As a result, pending home sales were down as of April.
More worryingly, a Redfin survey found a drop in customers touring homes for the first time in 27 months.
What’s going on?
The home price surge might be nearing its end.
Overall, home affordability is dropping: Over the past 6 years, there has been a 48% increase in average home prices, while wages increased only 14%.
And while some sellers are still managing to sell at higher prices than listed, nearly a quarter of sellers actually had to lower their prices this April.
What does this all mean for you?
If you do decide to sell right now, you would have an easy time of it, and you could get a top price for your home. That’s because demand and prices are both still high.
However, if you decide to wait, things might go south quickly.
That’s because the market may be reaching the limits of price growth, and may be stalled by higher mortgage rates.
If you are considering selling your home, you can get started with an estimate of what your home is worth in the current market. Simply use this calculator, which takes into account recent Central Pennsylvania sales:
And if you want an even more accurate estimate, then give me a call at (717) 609-8265. I have my finger on the pulse of the Central Pennsylvania real estate market, and I can tell you how quickly — and for how much — you could sell your home.
Have a great day!