Learn From History Before You Miss Your Chance to Sell

2013 saw the housing market slow greatly because of increased interest rates. Are we following the same trends today?

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The 2018 housing market started off much like how the market started five years ago. In 2013, the Federal Reserve saw the real estate market booming and pushed interest rates up to slow down the economy.

Currently we are seeing the same inflation in terms of values and prices as we did in 2013. I believe that the federal government is going to once again slow down the economy and the real estate market by raising the rates again. In fact, they have already raised them twice.

What this means to you, if you are selling, is that you want to get your house on the market immediately.

In 2013, rates started the year at 3.75%. By September of that year, they had risen to almost 4.75%. We sold an incredible amount of homes and had record-breaking sales in the first half of the year, and then the market came to a stop.

You can expect to see the same results this year. So far, we have already seen a huge influx of buyers and sales in the first quarter of 2018. The housing market is booming right now, we’re seeing the best prices in years, and we are seeing interest rates increase.

Interest rates have already jumped by almost 0.5% within the last six months. For the second quarter, they will continue to go up probably 0.25%.

By July, most buyers who are looking will have bought a home. After that, there will be an increase in inventory for the second half of the year, which will slow down the housing market and bring prices down.

If you are looking to sell your house, put it on the market now because the values are up, buyers are out, and inventory is low.
So, if you are looking to sell your house, put it on the market now because the values are up, buyers are out, and inventory is low. You want to be on the market before the summer months when a huge increase in inventory comes on the market and values come down. 

If you have any questions about this or want to list your home, please don’t hesitate to contact me. I look forward to speaking with you soon.

What Homebuyers Can Learn From Our 2017 Market



What can 2017 teach us about purchasing a house in 2018? Here are five very valuable takeaways.

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There are five lessons homebuyers can learn about our 2018 market by looking back on what happened in 2017.  

First, homes are still lower than their pre-recession peak prices. There are some exceptions in major cities like San Francisco and Denver, but there are still a lot of great deals out there and there is still some value we’re looking to get to in the next couple years.

Second, homes are selling quickly. On average, homes spend 45 to 60 days on our market, depending on price range and area. There is a very low supply of homes and a very high demand, so make sure you have an agent representing you who can put you at an advantage in finding the best deal possible.

Third, investors are everywhere. If you’re looking to invest in a property, make sure you’re ready to put your best offer forward. Again, having an agent such as myself by your side can help you prepare your proof of funds, have your purchase agreement ready to go right after you see a property you like, and make sure you pay the amount you should be paying considering you might be in a multiple offer situation.



Make sure you have an agent representing you who can put you at an advantage in finding the best deal possible.


Fourth, more deals were falling apart than ever before in 2017 because of things like mortgage and inspection issues, so when you’re ready to buy, know that you can negotiate inspections in your favor. Also, make sure you have your mortgage information ready and you’re pre-approved with a solid, qualified lender so you have the best chance possible at closing on the deal.

Finally, buying still saves over renting. People ask me all the time whether they should rent or buy. If you look at the national average of rental rates, you’ll see that they’re up across the entire country. This means in most markets, it would cost you more to pay rent than it would to buy a home.

For example, if you buy a $200,000 home in the Cleveland market, your monthly mortgage payment would be $800. By comparison, renting that same house at current rental rates would cost you as much as $2,000 per month. Essentially, you’d save as much as $1,200 per month by buying.

If you have any other questions about our market in 2018 or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d be happy to help you.

A Quick Update on Northeast Ohio Winter Home Prices in 2018



This winter is shaping up to be a huge moment for area homeowners who are looking to sell. Here are a few reasons why.

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This winter is likely to be a very important moment for many home sellers. That’s because three big trends are coming together to affect Ohio home prices right now:

1. Housing inventory remains extremely tight. The total number of homes on the market fell 10% year over year in the last quarter. This is the biggest drop since 2013, and it's part of a consistent pattern of very limited and decreasing housing supply. Of course, the fewer homes there are on the market, the easier it is to sell, and the higher the price you can expect to get. Home prices have increased almost 6.5% nationally since last year.

2. Buyers are increasingly optimistic. Despite the tight inventory, homebuyers are increasingly optimistic and continue to look for homes. Some of this has to do with the recent growth in income and job stability. Loosening lending standards are also making many homebuyers eager to take advantage of current mortgage rates, which slipped under 4% recently.



It’s the perfect time to get in the real estate market.


3. The new tax reform bill will impact the market. The federal government recently passed the Tax Cuts and Jobs Act, which majorly overhauled our tax code. While it’s unclear how this will affect the real estate market as a whole, there are some changes that do not favor home sellers.  As a result of the changes made to the tax code, the National Association of Realtors now projects slower growth for home prices in 2018, with an appreciation rate of 1% to 3%. By doubling the standard deduction, Congress has significantly reduced the value of mortgage interest and property deductions as tax incentives for homeownership. On the bright side, no changes were made in the rules surrounding capital gains for home sales, which is good news for home sellers.


When you put all three of these trends together, two big conclusions emerge. First, now is a very favorable moment for home sellers, thanks to the shortage in the market, the many eager buyers, and the high and rising prices. On the other hand, higher cost, higher tax areas will likely see prices decline as the result of new restrictions on mortgage interest and state and local taxes.

If you are looking to take advantage of the present moment to sell your home, please reach out by giving us a call or sending us an email. We look forward to hearing from you soon.