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November Real Estate Market Update with Dave and Travis!

First, my friend Marty Van Diest with Valley Market Real Estate shares my fondness for putting together the market trends to help predict where things are going. He took a look at the month of October sales for the last 5 years which I think illustrates well where we site right now. His numbers are for the entire Mat-Su Valley residential real estate FYI. There has been a big drop in the number of sales (this is true nationwide as well). 171 closed sales in October of this year versus 183 back in "normal" 2019 tells some of the story. Notice though that the average sales price is up considerably (roughly 35%) since 2019 highlighting the incredible gain in equity we have seen in the last couple years! Most people will say that the higher interest rates are the main cause in the drop in sales. Sure it is part of the reason but the big driver I think is lack of supply (again a nationwide issue). More about that below when we look at supply and demand. Travis & I have about 5 buyers ready to buy if we could just find them the right property, generally in the $300-400,000 price range. Nice homes listing in that range are still selling quickly and for top dollar. And mortgage interest rates dropped nicely of late which is helpful.

Top Questions About Selling Your Home This Winter

Even though the supply of homes for sale has increased in 2022, inventory is still low overall. That means it’s still a sellers’ market. The graph below helps put the inventory growth into perspective. Using data from the National Association of Realtors (NAR), it shows just how far off we are from flipping to a buyers’ market: While buyers have regained some negotiation power as inventory has grown, you haven’t missed your window to sell. Your house could still stand out since inventory is low, especially if you list now while other sellers hold off until after the holiday rush and the start of the new year.

What’s Ahead for Mortgage Rates and Home Prices?

There’s no doubt mortgage rates have skyrocketed this year as the market responded to high inflation. The increases we’ve seen were fast and dramatic, and the average 30-year fixed mortgage rate even surpassed 7% at the end of last month. In fact, it’s the first time they’ve risen this high in over 20 years

Interest Rates Deep Dive With Dave and Travis, October 2022

Now let's take a deeper look at what mortgage interest rates have done in 2022. Please keep in mind that the numbers I share are MY estimates and may vary, especially when it comes to interest rates. The first graph below shows what has happened so far in 2022 and yes, it's pretty brutal. Rates have more than doubled and I don't think they are done going up. For a 30 year fixed rate conventional mortgage the rate sits at about 7.375% right now and we started 2022 at about 3.375%!! The big question is how much higher will they go?

What’s Ahead for Home Prices?

As the housing market cools in response to the dramatic rise in mortgage rates, home price appreciation is cooling as well. And if you’re following along with headlines in the media, you’re probably seeing a wide range of opinions calling for everything from falling home prices to ongoing appreciation. The housing market is shifting, and it’s a confusing place right now. Let’s connect so you have a trusted real estate professional to help you make confident and informed decisions about what’s happening in our market.

October Real Estate Market Update with Dave & Travis

Is the real estate market crashing? Nope and I'll show you the latest trends to back that answer up. Now, have things slowed down quite a bit? For Sure! The rapid rise in interest rates has been a big concern. They sit at about 7% for a 30 year fixed rate conventional mortgage. Talking to a couple loan originator's this week they feel rates will go up a couple more times this year. Hopefully not over 8% but who knows. But homes are still selling at a good pace and there are some things we can do to help with the rates and affordability.

The Cost of Waiting for Mortgage Rates To Go Down

Basically, it is true that it costs more to buy a home today than it did last year, but the same is true for renting. This means, either way, you’re going to be paying more. The difference is, with homeownership, you’re also gaining equity over time which will help grow your net worth. The question now becomes: what makes more sense for you? Each person’s situation is unique. To make the best decision for you, let’s connect to explore your options.

September Real Estate Market Update with Dave & Travis

I am writing today from Ketchikan Alaska looking out over the Tongass Narrows on a beautiful sunny day. I am attending our Alaska Association of Realtors convention with the bonus of seeing my brother, sister and many friends. I have been a Realtor for 20 years now and it sure seems to have gone by fast!

20 Years As A Realtor – Dave Johnson

About 450 sales for about $95,000,000 and..I learn something new everyday it seems! Thankfully I still enjoy what this sometimes crazy business. I'm happy to be helping my son Travis learn this business and very much appreciate the love & support of my wife Karen through all the ups and downs. And I really appreciate all the unique people I get to help buy or sell real estate and the mostly great co-workers and peers I work with. Thanks!

Getting Your House Ready To Sell? Work with an Agent for Expert Advice

In a market that’s shifting as fast as it is today, many homeowners wonder what, if anything, needs to be renovated before they sell their house. That’s where a trusted real estate professional comes in. They can help you think through today’s market conditions and how they impact what you should – and shouldn’t – do before selling your house.