[Image Source: Realtor.com]
Real estate economists foresee a slowdown or even a minor recession in the housing market. Is this the change that buyers have been hoping for? What does it indicate if you’re getting ready to sell your house?
Fannie Mae experts expected a downturn in the real estate market in their most recent prediction, issued at the end of April. Here’s what The Arnold Home Team is hearing in the real estate market, as well as what it implies for sellers wanting to capitalize on present conditions.
Takeaways from the market:
- Fannie Mae experts forecast a “moderate recession.”
- Home sales are predicted from Fannie Mae to decline 7.4% this year and 9.7% in 2023.
- Experts at Fannie Mae do not anticipate a recession as severe as the Great Recession of 2007-09.
- Rising mortgage rates and falling affordability may have a “lock-in” effect on home sellers’ motivation to advertise existing homes for sale, as well as new construction.
- Material and labor prices continue to drive up the cost of new construction.
- According to Fannie Mae experts, house appreciation will fall back into the single digits.
What does this imply for sellers?
We constantly encourage our sellers, regardless of market circumstances, that your list price is part of the marketing mix – consider it as an advertising price to attract the highest buyer demand.
Be cautious of being overly greedy on list price in changing market conditions, as buyer desire may be significantly reduced due to rising interest rates and price appreciation.
Interest rates are rising at one of the quickest rates in history, and sellers should be prepared to respond rapidly to the market utilizing objective data analysis from our team.
What’s Next?
How does The Arnold Home team not only collect – but also build – buyer demand so that you obtain the best terms possible in your sale? We implement precise strategies to strategically position your house to elicit buyer offers, in addition to careful property preparation and a thorough pre-marketing campaigns.
Contact us now for a personal consultation to explore the best approach for your house, in your area, in today’s market circumstances!
Source: https://www.marketwatch.com/story/fannie-mae-chief-economist-says-u-s-housing-market-has-finally-turned-a-corner-a-sharper-downturn-in-residential-investment-is-now-underway-11653415119?mod=home-page