Today I’ll update you on what the market has been doing and explain what that means for you. Stay tuned.
In today’s market update, there are a few key points I want to address:
From 2012 to 2018, the market was on an upward trajectory where supply was going down and demand was going up. That put upward pressure on home prices, and we also saw some great appreciation during that period. Some of our clients are using that appreciation to their advantage right now, using that money to cash out or refinance, and others are selling that house to use the proceeds from the sale as a down payment on a different home.
We’re also noticing that the current market is beginning to cool off a little bit. What does that mean?
As of September 10, 2019, our active listings on the market were up by 10.3% over last year. For comparison, in September of 2018, active listings were down by 2.7% from the previous year. Additionally, the number of sold homes in September of 2019 increased by 3.7% over last year. In September of 2018, the number of sold homes was up by 8%.
As you can see, inventory this year is higher than the demand for homes. That means you’ll soon begin to see a softening of home prices—that doesn’t mean that prices are going down, but rather that they’re not appreciating as fast as they were last year. Over the last few years, we’d seen appreciation rates of 7%, 8%, 9%, and 10%; now, they’re more like 3%, 4%, or 5%.
“All in all, it’s a really good time to sell for those who bought a home in the last seven to 10 years.”
We do expect that at some point, things will cool off and we’ll see depreciating home prices again for a period as the market continues the same cycles it has done for many, many years.
I’m sure you’ve also heard that interest rates are really, really low—that means that it’s also a good time to buy a home or refinance your current one. Keller Williams actually has a mortgage that is free to you, meaning there are no origination fees, no lender fees, and you can get a $1,000 credit back to you at closing if the loan amount is $150,000 or more.
Several of my clients have reached out to me about refinancing their homes; they had a rate of around 4.5% or 4.7%, but now that rates are around 3.5% or 3.75%, they could save a couple hundred dollars off their monthly payments, depending on the value of the home in question.
If you have any questions about the market or about buying, selling, or refinancing a home, don’t hesitate to reach out to me. I’d love to hear from you.