Raise a Glass to New Beginnings!
Whew! We made it through! I can still recall sitting at my desk as we closed out 2020 and thinking, “I’m so glad we can put this year behind us!” I grieved for those who had lost friends and loved ones. I struggled to find meaning in the loss of businesses and jobs. It was a heck of a year. But sadly, just like a boomerang, back it came, giving us another round of loss and disappointment. Now, with 2022 already off to a rocky start, I remain hopeful but extra cautious when it comes to predictions!
Just like its predecessor, 2022 will certainly hold many surprises for the real estate market. It seems likely the demand for single-family homes will continue to outpace supply. With Covid-19 still on everyone’s mind, some potential sellers are opting to work-from-home and avoid the big moves while others see an opportunity to sell quickly and reap a healthy profit.
Millennials (aged 26-35), who now make up the largest US population, are embracing first-time home ownership in massive numbers. This means the market will remain competitive for the foreseeable future. Though builders are doing their best to keep up with demand and fill the low-inventory gap, the pace to build remains slow due to material and labor shortages.
So, what does that mean for you, the potential seller? Should you make a move? The answer truly depends on your reasoning. In this housing market, finding a “replacement” house won’t be easy and with monthly rental rates on par with mortgage rates (or higher), you need a solid game plan! Some sellers see this as an opportunity to “go it alone,” without the assistance of a real estate agent, and falsely believing it will yield a higher profit in the end. This is rarely the case.
The TV real estate agents make it look super simple: put out a new welcome mat, paint a wall or two, bake cookies, add a yard sign and buyers will flock to you. I understand the temptation and I wish it were that easy! As a seller you need the RIGHT buyer and a great agent to be truly successful. A qualified agent will bring you a qualified buyer—one that has been vetted, has proof of funds, loan-qualified, and one who is motivated to quickly respond to the lender’s requests for documents and more.
Buyers, you too need an agent. This is a fast-paced market with many twists and turns. Your agent should be on their A-Game every single day. They should have a large database of lenders, builders, and inspectors. They should be responsive to your questions and knowledgeable about your chosen neighborhood. They’ll often be willing to spend hours (daily) combing through listings and preparing for your closing. If this isn’t happening, you have the wrong agent!
Cheers to new beginnings, no matter which side of the process you are on!
Thank you from the bottom of our hearts for the many years of friendship and for allowing us to be your preferred Realtors for over 20 years. Thank you to over 300 families who allowed us to help your real estate dreams come true in 2021.
Wishing you and yours health, happiness, and peace in 2022!