Posts in category: Real Estate Services

There’s no doubt about the fact that the housing market is slowing from the frenzy we saw over the past two years. But what does that mean for you if you’re thinking of selling your house?

While home prices are still appreciating in most markets and experts say that will continue, they’re climbing at a slower pace because rising mortgage rates are creating less buyer demand. Because of this, there are more homes on the market. And in a shift like this one, the way you price your home matters more than ever.

Why Today’s Housing Market Is Different

During the pandemic, sellers could price their homes higher because demand was so high, and supply was so low. This year, things are shifting, and that means your approach to pricing your house needs to shift too.

Because we’re seeing less buyer demand, sellers have to recognize this is a different market than it was during the pandemic. Here’s what’s at stake if you don’t.

Why Pricing Your House at Market Value Matters

The price you set for your house sends a message to potential buyers. If you price it too high, you run the risk of deterring buyers.

When that happens, you may have to lower the price to try to reignite interest in your house when it sits on the market for a while. But be aware that a price drop can be seen as a red flag for some buyers who will wonder what that means about the home or if in fact it’s still overpriced. Some sellers aren’t adjusting their expectations to today’s market, and realtor.com explains the impact that’s having:

“. . . the share of listings with a price cut was nearly double its year ago level even as it remains well below pre-pandemic levels.”

To avoid the headache of having to lower your price, you’ll want to price it right from the onset. A real estate advisor knows how to determine that perfect asking price. To find the right price, they balance the value of homes in your neighborhood, current market trends and buyer demand, the condition of your house, and more.

Not to mention, pricing your house fairly based on market conditions increases the chance you’ll have more buyers who are interested in purchasing it. This helps lead to stronger offers and a greater likelihood it’ll sell quickly.

Why You Still Have an Opportunity When You Sell Today

Rest assured, it’s still a sellers’ market, and you’ll still get great benefits if you plan accordingly and work with an agent to set your price at the current market value. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”

Mike Simonsen, the Founder and CEO of Altos Research, also notes:

“We can see that demand is still there for the homes that are priced properly.”

Bottom Line

Homes priced right are selling quickly in today’s real estate market. Let’s connect to make sure you price your house based on current market conditions so you can maximize your sales potential and minimize your hassle in a shifting market.

Use storage hacks for a more organized home — and chill family life.

It’s a given. When your kids go back to school, your schedule and family life get more hectic. But you can prep for the school year crush by fine-tuning how you organize your home, including storage and space use. Here are some ingenious but simple storage hacks for getting an organized home that will make going back to school easier.

#1 Organize Your Kids’ Bedroom Closets and Drawers

Help your kids get dressed in the morning by organizing their clothes. Arrange the clothes in see-through bins and on hangers so they can find what they want to wear and get dressed in a hurry. That way, your child won’t waste valuable time rummaging around for matching socks or their favorite shirt.

Pro tip: Label the drawers, bins, and closet organizers with the type of clothing that goes in them. If your child knows which drawer is for socks and which bin is for T-shirts, they can stash their clothes in the right places so an organized closet will stay that way.

#2 Add Places to Store Books

Make sure your child has a place to store textbooks, library books, and their own books. Install shelves that are low enough for them to reach. If they already have shelves in their rooms, organize them just like you did their closet so they can find the books they need, fast. You don’t want them to miss the bus because they’re looking for their math book.

Pro tip: Put library books in a separate bin on a low shelf so your child remembers to return them on time.

#3 Create a Dedicated Space for Homework

Create a homework station where your children can study and work on their book reports. For younger kids who need parental supervision, set up a space in the kitchen or living area so you can make sure they stay on task. For older ones who can manage homework without mom and dad, set up a study space in their rooms. Make sure they have a table or desk, a comfy chair, bins to organize school supplies, good lighting, and no distractions.

Pro tip: Keep phones and video games away from the study space (easier said than done).

#4 Set Up an Organized Drop Zone in Your Entryway

You know the drill. Your kids come home from school and throw everything from backpacks to sneakers on the floor when they step in the door. To keep your entryway from looking like a tornado went through, turn it into an organized drop zone. Create storage space for backpacks, shoes, sports equipment, hats, coats, and other gear. Put up cubbies for shoes, shelves for books, and hooks for jackets, backpacks, and tote bags. You’ll declutter the space and ramp up efficiency.

Pro tip: Put baskets or bins on the floor or on low shelves by the entrance to catch the socks, toys, papers, and other paraphernalia that doesn’t make it onto a hanger or into a cubby.

#5 Create a Back-to-School Communications Command Center

That’s a fancy way of saying you need a space where you can coordinate class and work schedules, homework assignments, school activities, and reading lists. The center can be as simple as a calendar and whiteboard on a kitchen wall. Or you can make it more functional by adding hanging bins for folders, a message board, or a small table or desk where you can put an inbox, a bill holder, and a supply of envelopes and pens.

Pro tip: Get a large whiteboard with a calendar template that lets you customize each month and write down all your school-related appointments in one place.

#6 Get the Kids’ Bathrooms in Order

Make it easier for your kids to get out the door in the morning by arranging their bathroom for maximum efficiency. Sort their bathroom essentials by category — toothbrushes, hairbrushes, towels, shampoos, and soaps. Organize them in cabinets, drawers, or bins. You want to make items easy to find so your kids can brush their teeth and hair and wash their face fast.

Pro tip: Help younger children stay organized by labeling storage areas with the type of grooming supplies they hold, like “Hair,” “Teeth,” and “Bath.”

#7 Set Up a Back-to-School Breakfast Station

Feeding children as they rush out the door to school is tough. Make it simpler by setting up a spot in the kitchen with easy-to-prepare food so your kids can eat on the run. Put out airtight containers of cereal, bowls, packets of instant oatmeal, and fruit in a basket. Make sure milk, yogurt, and other healthy breakfast foods are in easy reach in the fridge.

Pro tip: Use hotel breakfast bars as your inspo. Kids love picking their own meal from an array of food, so copy that look on the kitchen counter.

#8 Make a Snack Drawer

Kids are hungry when they come home from school. Set up an area where they can get their own snacks. Put bins in the fridge that have healthy snacks just for them. Think fruit, yogurt, string cheese, nuts, hummus and celery sticks, and cherry tomatoes. If you make healthy food as accessible and ready to eat as junk food, your kids might choose an apple instead of a bag of chips.

Pro tip: Use clear bins so the kids can see what’s in them and so you know when you’re running low on snacks.

A few back-to-school hiccups are probably inevitable. But with some simple hacks for an organized home, the transition can be a whole lot easier.

By: Leanne Potts

With these amenities, your fur babies will make themselves (more) at home.

For most of us, our pets are family. We let them sleep in our beds, ladle nutritional supplements on their organic kibble, and throw birthday parties for them. In fact, we love our animal companions so much that we even choose a home and a home design for pets.

These numbers tell the story. Forty-three percent of pet owners say they’d move to accommodate their pet, according to a 2021 study from the National Association of REALTORS®. What’s more, 68% of pet owners surveyed by realtor.com® say they’d pass on an otherwise perfect home that didn’t meet their pet’s needs. According to the same survey, nearly 95% of pet-owning respondents say their furry companion plays a role in selecting a home.

Real estate agents are seeing the numbers play out IRL. “Our pets are pampered and adored. That’s really translating into how people are buying real estate and what amenities they are looking for,” says Nicole Prince, an agent with the Figueroa Team in Orlando. “I get clients who bring me a list of features they want in a home or neighborhood that are for their pets — from dog parks nearby to no carpet in the house.”

Here are some pet-friendly features that will make a home more welcoming for animals. Whether you’re shopping for a new home or upgrading your space to suit your fur baby’s needs, they’ll make the place a pet paradise.

#1 Pet Bathing Station

Washing a dog in a normal bathtub can be miserable. Even if your pup is groomed regularly, you still need to clean them up after they romp at the dog park or roll in mud in the yard. One solution is to build a grooming station in your home for quick cleanups.

“I’ve shown homes lately that have grooming stations built in,” Prince says. “It’s super cool — a utility sink that doubles as a place for you to wash your dog.” For larger dogs, you can install a commercial grooming tub with a hand sprayer or a walk-in shower that will accommodate your pet. The location is flexible: A grooming station can go in a laundry room, mudroom, or garage.

#3 Pet-Proof Flooring

Accidents happen, even with the best-behaved pets. That’s why floors with a hard, impermeable surface make your life easier. Think tile, hardwood, terrazzo, cement, or laminate, Prince says. Stay away from wall-to-wall carpet. “Carpets soak up pet stains, so they’re a bad idea,” Prince explains. Adding wood floors to your home increases monetary value, too. The National Association of REALTORS® “2022 Remodeling Impact Report” says new wood floors bring a 118% return when it’s time to sell the house.

#4 Build-in Pet Beds

Pet beds tossed about your house are unattractive and consume valuable floor space. The alternative is building pet beds into cabinets, shelves, and other pieces of furniture. You can build a pet bed into the bottom shelves of a bookcase or into a kitchen or mudroom cabinet. Or tuck it under the stairs. If hiring a cabinetmaker or carpenter to build a seamless pet bed isn’t in your budget, you can also buy pet beds that look like furniture. You’ll be happier with the way your pet bed looks, and your pet will have a permanent space.

#5 Built-in Pet Gates

You don’t want your pets to go into certain places in your home, and most of us keep them out with baby gates. Plastic baby gates are flimsy and unattractive. A better option is a built-in gate. You can hire a cabinetmaker to build a custom pet gate for a door that’s mounted to a door jamb on hinges. Or you could make a pocket door-style pet gate that slides into the walls. Can’t afford custom work? Consider premade upscale pet gates that you can mount to a door jamb or staircase.

#6 Outdoor Ramp

Just like humans, dogs and cats can get too old to easily navigate stairs. If stairs are separating your pet from the outdoors, build a ramp from the door to the yard to make your house accessible as they age. You can hire a carpenter to construct the outdoor ramp for dogs. Be sure you design it at an angle they can navigate. Small or short-legged dogs — like basset hounds and corgis — may need a ramp to navigate stairs even when they’re young.

#7 Enclosed Cat Patio

Also called a catio (cat + patio,) these outdoor enclosures provide a safe place for your cat to play outside. The structure, with a roof and four walls, keeps your cat safe and unable to harm wildlife. Catios can range from window-box sized ones to lanai-sized ones large enough to enclose a patio with human seating.

#8 Built-in Pet Doors

Those pet doors with the rubber flaps and plastic frames that you hack into a door can be flimsy and straight-up ugly. Fortunately, sturdier and more aesthetically pleasing alternatives are available. You can get exterior doors with built-in pet doors. Or, consider glass inserts with built-in pet doors that replace sidelights on an exterior door. If you want to spend more, you can get heavy duty pet door inserts that fit into your home’s exterior wall. Integrating a pet door into your home’s design is better for you and your pup because it’s more permanent, secure, and lovely.

#9 Built-in Pet Feeding Station

Food and water bowls are messy, so upgrade your setup with a built-in pet feeding station. You can build a dedicated space for pet bowls into the cabinets in your kitchen or laundry room. That means no more tripping over bowls. A built-in station organizes the space, turning pet bowls from clutter to part of the furniture. Consider installing a faucet near the feeding station so you can easily refill or rinse bowls.

#10 Fenced-in Yard

A meadow-like grassy yard enclosed by a secure fence is the holy grail for pet owners. An outdoor area for their beloved animals to play safely is why pet owners leave lofts in the city for single-family homes in the suburbs. “A fenced-in yard is near the top of my clients’ list when they’re looking for dog-friendly features,” Prince says. “There’s no substitute for a safe place for your animals to spend time outdoors.”

By: Leanne Potts

If your needs are changing, you may be thinking about sharing a home with additional loved ones, such as grandparents, adult children, or other extended family members. Whether it’s for financial or health-related circumstances, or simply because you’ve reached a new phase of life, you might be wondering if living with multiple generations under the same roof is a good move for you. Many people have found themselves in a similar situation and they’ve already made the choice to live in a multigenerational home.

What Is a Multigenerational Home?

The Pew Research Center defines a multigenerational household as a home with two or more adult generations. They include households with grandparents and grandchildren under the age of 25. As you weigh your options and decide if multigenerational living is right for you, here’s some helpful information highlighted by other homeowners living with additional loved ones.

The Benefits of Multigenerational Living

A recent report from Generations United surveyed individuals living in a multigenerational setting and asked them about the key benefits of this housing arrangement. It says:

“Nearly all Americans who live in a multigenerational household (98%) feel their household functions successfully, citing various aspects of home design, family relationships and interactions, and supports and services influencing their success.” The study identifies some of the top benefits of this lifestyle as an improved financial situation, better mental and physical health, strengthened bonds with loved ones, and more (see chart below):

Those are just some of the reasons why most people who decide to live in this situation find it worthwhile. As Donna Butts, Executive Director at Generations United, says:

“Families may come together from need, but they are staying together by choice. Indeed, more than 7 in 10 (72 percent) of those currently living in a multigenerational household plan to continue doing so long-term.”

With More Adults Living Under One Roof, You May Need More Space

If you decide to look for a multigenerational home, it’s important to understand what everyone will need to make the arrangement work to its fullest. Something that often makes the top of the list for homeowners living with multiple generations is additional space for privacy. This could mean more bedrooms and bathrooms or features like an in-law suite or a basement. If you’re realizing your current house doesn’t provide the room you need for multigenerational living, an expert real estate advisor can help you navigate the process to find the right home that works for you and your loved ones.

Bottom Line

Living in a multigenerational household has real and impactful benefits. If you’re interested in learning more about these options on the mid-Peninsula, contact the Dinsmore Group. We’re your local, expert real estate advisors and would love to answer any of your questions.

Home buyers who do mortgage loan shopping can avoid leaving money on the table.

Whether you’re shopping for new bed sheets or a new car, the drill is usually the same. Hit the reviews, check with friends, and scope out the best deal. After all, who wants to buy a car that racks up repair bills right away? Yet when picking a mortgage loan, borrowers don’t always think about comparison shopping.

In a Bankrate survey of recent home buyers, 12% of millennials said they believe their mortgage rates were too high. Some buyers may think that when mortgage rates are low, they don’t need to shop for the best offer. But even a few basis points can make a difference of thousands of dollars over the life of a loan, according to Bankrate, the Consumer Financial Protection Bureau, and    the Federal Trade Commission.

You may think mortgage shopping is about as much fun as prepping for a tax audit. It’s true that comparing home mortgages can get complicated. But you don’t need a finance degree to make an informed decision. Here are some steps to get there.

Find a Few Lenders

When looking for lenders to consider, loan officers recommend going to a few sources:

Locals you know and trust: “Make sure the lenders you’re comparing come from referrals from local people you know who’ve worked with them — like your friends or relatives,” advises Jeff Koch, senior vice president of residential lending at Draper & Kramer Mortgage Corp in Schaumburg, Ill. “Wherever you have trust established would be a good source.”

• Your real estate agent: “If you’re working with a real estate agent, find out if they have any feedback or advice on a lender or a loan officer,” recommends Jim DeMarco, branch manager and senior loan advisor at Flagstar Bank in Seattle.
• Online reviews: These can be a good starting point, DeMarco says. “If you see a lot of really good reviews, that means people are taking the time to provide them.”

Have an Intro Mortgage Loan Meeting

During a meet and greet, you and the loan officer will usually ask each other questions, and the loan officer will use that information to assess your qualifications. That may sound cut and dried, but the meeting should be fluid based on what you’re ready to do.

Typically, the loan officer would schedule a meeting focused on comparison shopping separately. If that sounds painful to borrowers who want to (literally) get moving, no worries, Koch says. “The borrower may be well versed and want to get right to what’s most relevant for them, which are the financial and comparison details. But a lot of people need to go over their own questions or cover key topics first.”

Want to meet virtually? “Some folks are just more comfortable virtually, and that’s OK,” DeMarco says. “I’ve closed loans with people I’ve never talked to on the phone. It’s all via text.”

Interview the Mortgage Loan Officer

Whichever way you choose, this meeting is prime time to interview the loan officer. Borrowers need to find someone who will be in there with them and can problem solve. “We call unanticipated problems ‘icebergs,’” DeMarco says. “You think there’s smooth sailing. And then, suddenly, you smack into an iceberg.”

Check out the lender’s communication strategy and their process for delivering on time. “The process is highly complex, and you’d think professional lenders all would have mastered it. That’s not the case,” says Koch. “When a loan isn’t delivered on time, people’s finances and lives are basically balanced on the head of a pin, which is the closing date.”

To avoid problems, ask questions like these:

Fact finding about the process:

• Would you take me through the process?
• What should I expect?
• What will I need to supply?

Compatibility with the loan officer or mortgage banker or broker:

• What’s your communication style? Are you willing to communicate virtually?
• When would I work with you? Are you available in the evenings?
• Will I work with you or a member of your team?
• What do you think of my time frame to get to closing?
• What if any problems do you foresee?

Track record of loan officer and lender:

• How long do loans you process typically take to close?
• How would you expedite the process if there’s a tight time frame?
• About what percentage of loans you work on close on time?
• How many loans have you worked on that haven’t closed or haven’t met deadlines?
• What’s the biggest problem you’ve had with a loan and how did you fix it?

Use the Meeting to Learn

You can also use the meeting to clarify general info you’ve picked up online and talk about your concerns. DeMarco gives a couple of examples. “You may have switched careers or industries in the last year or started having bonus or commission income. Your research may have shown you can just divide your salary by 12 to figure monthly income. But it may not be as simple as that.”

You’ll also want to bring up concerns like the impact on your credit score. Thirty-eight percent of buyers think comparing multiple mortgage offers in a short time will hurt their credit rating, according to a 2020 LendingTree survey. “As long as the lenders all pull the borrower’s credit within a couple of weeks, it’s counted as a single credit inquiry. So, it’s not a problem if they do it within a narrow band of time,” Koch explains.

Get and Compare Financial Information

Whether you’re looking at a federal form called a loan estimate or a precursor form called the fees worksheet, you’ll see a breakout of closing costs, explains Koch. “To compare the lender financials, you’ll want to drill down to origination charges in the lender section. Make sure you’re comparing apples to apples. If one lender is offering a 30-year fixed rate at 2.875% with no lender fees and another is offering 2. 75% with $1,500 in lender fees, those are unlike products. Get the fees at the same rate to find out which is less expensive.”

6 Tips to Get Mortgage Loan Information

Comparison shopping can get complicated. Here are six ways to keep it simple:

1. Keep Your Pool Manageable
   

Mortgage shopping “depends on the borrower and the personality type and how they’re wired,” Koch says. “The process can seem overwhelming. That’s why it makes sense to have a select few options to compare so borrowers can process and assimilate them.”

2. Get a Fees Worksheet

The best way to compare effectively is to zero in on the fees worksheet, which the loan officer should provide. “You’ll be able to figure out just what the lender’s direct fees are, and you can make a nice, simple comparison,” Koch explains.

3. Understand a Fees Worksheet Versus a Loan Estimate

The numbers on the worksheet are estimates and not locked in. Interest rates are fluid and change daily or even more often, DeMarco says. On the other hand, after you have a contract with a seller, “the loan estimate and loan application are where the information is binding, barring structural changes to the loan,” Koch says. Make sure the information reflects previous discussions with and disclosures by the loan officer.

4. Be Careful Interpreting Third-Party Fees

Third-party fee estimates are included on the worksheet. Two lenders could each come up with different estimates for title, escrow, or appraisal fees, Koch explains. But not all are negotiable. For instance, the seller chooses the title company, so the lender doesn’t control the choice or the fees. The lender could be choosing the high or low end of a range, but it’s only an estimate.

5. Think About Timing

Make sure lenders are using the same time frame for locking in pricing and that it will extend through the closing, Koch notes. “A lender might offer a rate that’s a lock for three weeks, but if you  anticipate or know your closing date will be five or six weeks out, that’s a problem.”

6. Consider Applying for Loan Approval Before Finding a Property

“Many lenders will not do this,” Koch says. “But some will allow borrowers to go through the formal underwriting process — not just pre-approval — without having a property. The borrowers can get a bona fide mortgage commitment with all of the major buyer financials truly underwritten at that point. Then when borrowers make an offer, they can close more quickly.”

You’ll have to invest some time and effort into comparison shopping for a mortgage loan and selecting a lender and a loan officer. But your return on investment can pay off over the long haul.

By: Lynn Ettinger

Think twice before you write or receive a home love letter.

Did you hear the one about the dog who wrote a love letter? Not to his owner, but to a home seller. Well, actually the dog’s owner wrote the letter in Buddy’s voice. Buddy described how wag-worthy the house was and how much he craved a game of fetch in the backyard. 

Doggie ghostwriting, which happened IRL, is just one way home buyers are getting creative to motivate a seller to accept their offer. It sounds harmless enough, right? But buyer letters to home sellers can unintentionally create Fair Housing Act discrimination and risks for buyers, sellers, and their agents. And there are more-effective ways to offer what sellers value.

How Love Letters to Home Sellers Work

“A love letter is any communication from the buyer to the seller where the buyer is trying to set themselves apart,” says Deanne Rymarowicz, associate counsel at the National Association of REALTORS^®. “It could be an email, a Facebook post, a photo. For example, some buyers send elaborate packages with videos and letters. The communication has the intent of ‘pick me, and here’s why.’” 

Buyers who write the letters typically send them to the listing agents, along with their offers, says Paul Knighton, CEO and cofounder of MORE Realty in Tigard, Ore. “They ask, ‘Would you please pass this along to the sellers?’ They’re doing what they can to get their offer accepted, especially in a competitive market.”

Letters Can Risk Violating Fair Housing Act

While these love letters may seem harmless, they can create a problem if buyers accidentally reveal information in one or more of the seven areas protected by the Fair Housing Act, Rymarowicz explains. Those areas are race, color, religion, sex, disability, familial status, or national origin. “Buyers could say something like, ‘this is down the street from our temple,’ or ‘the hallways are wide enough to accommodate my wheelchair.’ Anything that provides personal information related to one of the prohibited bases for discrimination could result in a violation if a seller makes a decision based on that information.” 

Do Love Letters to Home Sellers Work?

On top of creating potential risk, love letters to sellers aren’t all that effective, Knighton says. Here’s a case in point. Several years ago, one of his clients got 14 offers overnight, ranging from $219,000 to $250,000. “A person who offered $225,000 wanted to send a love letter. I told him, ‘You’re writing an offer that’s $25,000 under the highest offer. A letter’s not going to help.’ He wrote it anyway, but the seller didn’t even read it and took the higher offer. The offer needs to stand on its own.” 

And seller apathy isn’t the only issue. Some sellers may be completely turned off, Rymarowicz says. “They may think, ‘This is a financial transaction.’” 

Beyond communication, the circumstances can suggest Fair House Act discrimination, she explains. Say an offer with a love letter got the house but was less attractive than an offer without a letter. “If the losing buyer doesn’t share characteristics of the seller and the winning buyer does, you could have a situation. If sellers accept love letters, it’s more important that they document the basis of their decision when selecting a winning offer.”

Tips to Avoid Violating the Fair Housing Act

So, what exactly should you do to avoid risk of violating the Fair Housing Act? Here are five tips:

1. Keep the contract in mind: Knighton says real estate pros at his firm talk to buyers and sellers about contract boundaries. “We say, ‘Please don’t communicate with the other party, because we are in contract negotiations and need to manage time frames.’”  
2. Focus on objective information: Find ways to differentiate yourself on objective terms. And talk to the agent about how to improve the substance of your offer, Rymarowicz advises. “Can you make a larger earnest money deposit? Can you give them a longer closing date?” 
3. Proceed with caution: The NAR discourages buyer letters to home sellers and advises caution, according to Rymarowicz. 
4. Talk to your agent: Don’t be surprised if your real estate agent brings up the subject. “If you’re the seller, the listing agent may talk to you about the potential for Fair Housing violations. They may ask if you want to accept the risks,” Rymarowicz says. If the agent doesn’t raise the subject of buyer letters, the buyer or seller can do so. 
5. Know your state law: Oregon passed a law governing how letters to home sellers are used. “Effective January 2022, a seller’s agent must reject any communication from a buyer other than customary documents,” Knighton says. A real estate firm filed a challenge to the law, though. And until the U.S. District Court for the District of Oregon issues a final decision, the state won’t enforce the law.

Even if a buyer letter to a seller focuses on the property and not the buyer, there’s little to be gained, Knighton says. “There’s risk, but the reward isn’t there. Instead, focus on writing a really strong offer. That’s what has to stand out.”

If you’re following the news, all of the headlines about conditions in the current housing market may leave you with more questions than answers. Is the boom over? Is the market crashing or correcting? Here’s what you need to know.

The housing market is moderating compared to the last two years, but what everyone needs to remember is that the past two years were record-breaking in nearly every way. Record-low mortgage rates and millennials reaching peak homebuying years led to an influx of buyer demand. At the same time, there weren’t enough homes available to purchase thanks to many years of underbuilding and sellers who held off on listing their homes due to the health crisis.

This combination led to record-high demand and record-low supply, and that wasn’t going to be sustainable for the long term. The latest data shows early signs of a shift back to the market pace seen in the years leading up to the pandemic – not a crash nor a correction. As realtor.com says:

“The housing market is at a turning point. . . . We’re starting to see signs of a new direction, . . .”

Home Showings Then and Now

The ShowingTime Showing Index tracks the traffic of home showings according to agents and brokers. It’s a good indication of buyer demand. Here’s a look at that data going back to 2019 (see graph below):

The 2019 numbers give a good baseline of pre-pandemic demand (shown in gray). As the graph indicates, home showings skyrocketed during the pandemic (shown in blue). And while current buyer demand has begun to moderate slightly based on the latest data (shown in green), showings are still above 2019 levels.

And since 2019 was such a strong year for the housing market, this helps show that the market isn’t crashing – it’s just at a turning point that’s moving back toward more pre-pandemic levels.

Existing Home Sales Then and Now

Headlines are also talking about how existing home sales are declining, but perspective matters. Here’s a look at existing home sales going all the way back to 2019 using data from the National Association of Realtors (NAR) (see graph below):

Again, a similar story emerges. The pandemic numbers (shown in blue) beat the more typical year of 2019 home sales (shown in gray). And according to the latest projections for 2022 (shown in green), the market is on pace to close this year with more home sales than 2019 as well.

It’s important to compare today not to the abnormal pandemic years, but to the most recent normal year to show the current housing market is still strong. First American sums it up like this:

“. . . today’s housing market looks a lot like the 2019 housing market, which was the strongest housing market in a decade at the time.”

Bottom Line

If recent headlines are generating any concerns, look at a more typical year for perspective. The current market is not a crash or correction. It’s just a turning point toward more typical, pre-pandemic levels. Let’s connect if you have any questions about our local market and what it means for you when you buy or sell this year.