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3 myths that are hurting home buyers and sellers

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Myths about today's market that are hurting buyers and sellers

There’s no denying that it’s a tough market, with challenges for both buyers and sellers. But myths and misconceptions floating around about this market and what’s going to happen next aren’t making things any easier.

So what, exactly, are those myths and misconceptions, and why are they incorrect? Here are some of the common myths in today’s housing market that are hurting both buyers and sellers, including:

Myth 1: Owners with low mortgage rates will never sell.

Many buyers that purchased a home a few years ago locked in record low interest rates on their mortgages. And with interest rates significantly higher today, there’s a belief that those homeowners will never give up their low interest rates and sell. But the truth is, there are a ton of life circumstances that could force a person to list and sell their home — like a new job, growing family, or change in their financial situation — no matter what kind of interest rate they have on their mortgage.Continue Reading

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Are home prices going up or down? That depends…

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Are Home Prices Going Up or Down? That Depends…

Media coverage about what’s happening with home prices can be confusing. A large part of that is due to the type of data being used and what they’re choosing to draw attention to. For home prices, there are two different methods used to compare home prices over different time periods: year-over-year (Y-O-Y) and month-over-month (M-O-M). Here’s an explanation of each, and why it’s important to consider the differences:

Year-over-Year (Y-O-Y):

  • This comparison measures the change in home prices from the same month or quarter in the previous year. For example, if you’re comparing Y-O-Y home prices for April 2023, you would compare them to the home prices for April 2022.
  • Y-O-Y comparisons focus on changes over a one-year period, providing a more comprehensive view of long-term trends. They are usually useful for evaluating annual growth rates and determining if the market is generally appreciating or depreciating.

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Oops! Home prices didn’t crash after all

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Oops! Home prices didn’t crash after all

During the fourth quarter of last year, many housing experts predicted home prices were going to crash this year. Here are a few of those forecasts:

“I expect housing prices fall 10% to 15%, and the housing prices are accelerating on the downside,” said Jeremy Siegel, Russell E. Palmer Professor Emeritus of Finance at the Wharton School of Business.

“Buckle in,” said Mark Zandi, Chief Economist at Moody’s Analytics. “Assuming rates remain near their current 6.5% and the economy skirts recession, then national house prices will fall almost 10% peak-to-trough. Most of those declines will happen sooner rather than later. And house prices will fall 20% if there is a typical recession.”

And from Goldman Sachs: “Housing is already cooling in the U.S., according to July data that was reported last week. As interest rates climb steadily higher, Goldman Sachs Research’s G-10 home price model suggests home prices will decline by around 5% to 10% from the peak in the U.S. … Economists at Goldman Sachs Research say there are risks that housing markets could decline more than their model suggests.”Continue Reading

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Infographic:
Three reasons to buy a home in today’s shifting market

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The housing market is moving away from the frenzy of the past year and it’s opening doors for you if you’re thinking about buying a home. Housing inventory is increasing, which means more options for your search. Plus, the intensity of bidding wars may ease as buyer demand moderates, leading to fewer homes selling above asking price.

Three reasons to buy a home in today’s shifting market

If you’re ready to buy a home, now may be the moment you’ve been waiting for. Let’s connect to start the home buying process today.

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4 key trends that define today’s real estate market

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Today’s real estate market explained through 4 key trends

As we move into the second half of the year, one thing is clear: the current real estate market is one for the record books. The exact mix of conditions we have today creates opportunities for both buyers and sellers. Here’s a look at four key components that are shaping this unprecedented market.

A Shortage of Homes for Sale

Earlier this year, the number of homes available for sale fell to an all-time low. In recent months, however, inventory levels are starting to trend up. The latest Monthly Housing Market Trends Report from realtor.com says:

“In June, newly listed homes grew by 5.5% on a year-over-year basis, and by 10.9% on a month-over-month basis. Typically, fewer newly listed homes appear on the market in the month of June compared to May. This year, growth in new listings is continuing later into the summer season, a welcome sign for a tight housing market.”

This is good news for buyers who crave more options. But even though we’re experiencing small gains in the number of available homes for sale, inventory remains a challenge in most states. That’s why it’s still a sellers’ market, giving homeowners immense leverage when they decide to make a move.

Buyer Competition and Bidding Wars

Today’s ongoing low supply, coupled with high demand, creates a market characterized by high buyer competition and bidding wars. Buyers are going above and beyond to make sure their offer stands out from the crowd by offering over the asking price, all cash, or waiving some contingencies. The number of offers on the average house for sale broke records this year – and that’s great news for sellers.

In fact, the latest Confidence Index from the National Association of Realtors (NAR) says the average home for sale receives five offers.

For buyers, the best way to put a compelling offer together is by working with a local real estate professional. A Buyer’s Agent can act as your trusted advisor on what terms are best for you and what’s most appealing to the seller.Continue Reading

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Infographic:
Your home equity can take you places

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The amount of wealth Americans have stored in their homes has increased astronomically. On average, homeowners gained $33,400 in equity over the last 12 months, and the average equity on mortgaged homes is now $216,000. When it’s time to sell, your home equity can help accomplish your goals.

INFOGRAPHIC: Your home equity can take you places

Let’s connect to discuss how you can take advantage of today’s sellers’ market to get the most out of your home sale.

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A look at home price appreciation through 2025

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A look at home price appreciation through 2025

Home prices have increased significantly over the last year, which in turn has grown the net worth of homeowners. Appreciation and home equity are directly linked – as the value of a home increases, so does a homeowner’s equity. And with these recent gains, homeowners are witnessing their financial stability and well-being grow to record levels.

In more good news for homeowners, the most recent Home Price Expectations Survey – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists – forecasts home prices will continue appreciating over the next five years, adding to the record amount of equity homeowners have already gained over the past year.

Below are the expected year-over-year rates of home price appreciation from the report:

A look at home price appreciation through 2025

What Does This Mean for Homeowners?

Home prices are climbing today, and the data in the survey indicates they’ll continue to increase, but at rates that approach a more normal pace. Even still, the amount of household wealth a homeowner stands to earn going forward is substantial. This truly becomes clear when we consider a scenario using a median-priced home purchased in January of 2021 and the projected rate of appreciation on that home over the next five years. As the graph below illustrates, a homeowner could increase their net worth by a significant amount – over $93,000 dollars by 2026.Continue Reading

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Home price appreciation: As simple as supply and demand

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Home price appreciation continues to accelerate. Today, prices are driven by the simple concept of supply and demand. Pricing of any item is determined by how many items are available compared to how many people want to buy that item. As a result, the strong year-over-year home price appreciation is simple to explain. The demand for housing is up while the supply of homes for sale hovers at historic lows.

Let’s use three maps to show how this theory continues to affect the residential real estate market.

Map #1 – State-by-state price appreciation reported by the Federal Housing Finance Agency (FHFA) for the first quarter of 2021 compared to the first quarter of 2020:

As the map shows, certain states (colored in red) have appreciated well above the national average of 12.6%.Continue Reading

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Infographic: Should I buy now or wait?

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If you’re thinking that waiting a year or two to purchase a home might mean you’ll save some money, think again. Mortgage interest rates are currently very low, but experts across the board are forecasting increases in both home prices and interest rates. Buying a home now means you’ll spend less in the long run.

INFOGRAPHIC: Should I buy now or wait?

Let’s connect to put your home buying plans in motion before home prices and mortgage rates climb even higher.

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Mortgage rates by decade

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Mortgage interest rates have dropped considerably over the past year, and compared to what we’ve seen in recent decades, it’s a great time to buy a home.

Locking in a low rate today could save you thousands of dollars over the lifetime of your home loan, but these low rates may not last forever.

Mortgage rates by decade

If you’re in a position to buy a home, let’s connect to determine your best move in today’s housing market while interest rates are still in your favor.

Let’s connect to determine the best way to position you for a financially-savvy move in today’s market.

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Russ Fortuno, Associate Broker

I'm a Southern Arizona native and Quail Creek resident. Whether you’re buying or selling a home in Quail Creek, you’ll experience unsurpassed service and professionalism at all stages of your real estate transaction. I welcome the opportunity to assist in your next home sale or purchase.
Meet Russ

Tierra Antigua Realty

18745 S. I-19 Frontage Rd., Ste. A105
Green Valley, AZ 85614
(520) 333-0446
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