Nationally, existing home sales recently dropped to a 6-month low, falling 7.2% as buyers struggled to find a home amid rising prices and historic low inventory. Pending sales are also down, declining 4.1% as of last measure, according to the National Association of REALTORS^®. Builders are working hard to ramp up production—the U.S. Census Bureau reports housing starts are up 22.3% compared to a year ago—but higher construction costs and increasing sales prices continue to hamper new home sales, despite high demand for additional supply.

New Listings decreased 12.7 percent for single-family homes and 12.5 percent for townhouse-condo properties. Pending Sales decreased 7.7 percent for single-family homes and 21.9 percent for townhouse-condo properties. Inventory decreased 38.2 percent for single-family homes and 33.3 percent for townhouse-condo properties. The Median Sales Price was up 20.7 percent to $420,000 for single-family homes and 21.0 percent to $337,500 for townhouse-condo properties. Days on Market decreased 26.3 percent for single-family homes but increased 14.8 percent for townhouse-condo properties. Months Supply of Inventory decreased 38.5 percent for single-family homes and 25.0 percent for townhouse-condo properties.

Across the country, consumers are feeling the bite of inflation and surging mortgage interest rates, which recently hit 4.6% in March, according to Freddie Mac, rising 1.4 percent since January and the highest rate in more than 3 years. Monthly payments have increased significantly compared to this time last year, and as housing affordability declines, an increasing number of would-be homebuyers are turning to the rental market, only to face similar challenges as rental prices skyrocket and vacancy rates remain at near-record low.

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The U.S. real estate market remains hot ahead of the spring selling season, with existing home sales up 6.7% as of last measure, according to the National Association of REALTORS^®. Experts attribute the growth in sales to an uptick in mortgage interest rates, as buyers rushed to lock down their home purchases before rates move higher. Mortgage rates have increased almost a full percentage point since December, with the average 30-year fixed-rate mortgage briefly exceeding 4% in February, the highest level since May 2019.

New Listings decreased 4.6 percent for single-family homes and 5.4 percent for townhouse-condo properties. Pending Sales decreased 17.3 percent for single family homes but increased 3.6 percent for townhouse-condo properties.

Inventory decreased 42.7 percent for single-family homes and 54.5 percent for townhouse-condo properties.

The Median Sales Price was up 12.5 percent to $365,500 for single-family homes and 24.0 percent to $310,000 for townhouse-condo properties. Days on Market decreased 35.7 percent for single-family homes and 66.7 percent for townhouse-condo properties. Months Supply of Inventory decreased 41.7 percent for single-family homes and 57.1 percent for townhouse-condo properties.

Inventory was at an all-time low of 860,000 as February began, down 17% from a year ago and equivalent to 1.6 months supply. According to Lawrence Yun, Chief Economist at the National Association of REALTORS^®, much of the current housing supply is concentrated at the upper end of the market, where inventory is increasing, while homes priced at the lower end of the market are quickly disappearing, leaving many first-time buyers behind.

The shortage of homes is boosting demand even further, and with bidding wars common in many markets, it’s no surprise sales prices continue to soar.

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When preparing your home for a showing or an open house there are a few things you will want to do before potential buyers walk through your home. Our checklist below is a great resource to read through to make sure you're prepared. 

Remove clutter.

Clear off the counters and pack unnecessary decorative items. Put extra furniture in storage, and remove out-of-season items. Don’t forget to clean out the garage, too.

Let it shine.

Cleaning windows and screens will help bring more light into your home. Replace burnt bulbs, and consider higher wattage in low-light areas. Clean the walls or brush on a fresh coat of bright, neutral paint. Replace heavy curtains with sheer ones and show off your view. 

Keep it clean.

A deep clean before listing your home will make upkeep easier. Consider hiring a cleaning service to help.

Maximize comfort.

In summer, shut A/C vents on the first floor so more air will get upstairs. Reverse the process in winter.

Perform a sniff test.

Clean carpeting and drapes to eliminate odors. Open the windows to air out the house. Consider potpourri or scented candles and diffusers. For quick fixes in the kitchen, cotton balls soaked in vanilla extract or orange juice can instantly make the fridge a nicer-smelling place. Boil lemon juice in your microwave, then add it to your dishwasher to eliminate odors. You can also run lemon rinds through the garbage disposal for a similar effect.

Take care of minor repairs.

Sticky doors, torn screens, cracked caulking, or a dripping faucet may seem trivial, but they’ll give buyers the impression that the house isn’t well-maintained. 

Tidy up outdoors.

Cut the grass, rake the leaves, add new mulch, trim the bushes, edge the walkways, and clean the gutters. A pot of bright flowers near the entryway adds great curb appeal.

Set the scene.

A bright afghan or new accent pillows easily jazz up a dull room. Pretty dishes or a simple centerpiece on the tables can help buyers picture themselves living there. Try staging a chess game in progress. If you have a fireplace, lay fresh logs or a basket of flowers there.

Make the bath luxurious.

Make sure your personal toiletry items are out of sight, along with old towels and toothbrushes. Add a new shower curtain and fancy guest soaps. 

Send the pets to the neighbors.

If that’s not possible, crate or confine them to one room, and let the real estate practitioner know where they’ll be to eliminate surprises. 

Lock up valuables and medication.

Agents can’t watch everyone all the time.

Head out.

It can be awkward for everyone if you’re home at the time of a showing.

 

There are many factors that go into the sale of your home in addition to preparing your home, such as the listing process, navigating offers, and closing. You can depend on Coldwell Banker Islands Realty to help you make informed decisions with confidence and advocate for you throughout the selling process. Get in touch with one of our local agents today. 

 

Copyright NATIONAL ASSOCIATION OF REALTORS®. Reprinted with permission.

 

Who else is dreaming of this Champlain Islands Contemporary as forever home? March's hidden home recently closed in February. It is a covert home with truly panoramic views of Lake Champlain and the Green and Adirondack Mountains. Watch to see the some of the best views in the Champlain Islands! 

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The 2022 real estate market begins where 2021 left off, in which existing home sales reached their highest level since 2006, with the National Association of REALTORS® reporting sales were up 8.5% compared to the previous year as homebuyers rushed to take advantage of historically low mortgage rates. Home sales would’ve been even greater were it not for soaring sales prices and a shortage of homes for sale in many markets, forcing a multitude of buyers to temporarily put their home purchase plans on hold.

New Listings decreased 27.4 percent for single-family homes and 32.4 percent for townhouse-condo properties. Pending Sales decreased 7.9 percent for single-family homes and 32.6 percent for townhouse-condo properties. Inventory decreased 50.9 percent for single-family homes and 45.8 percent for townhouse-condo properties. The Median Sales Price was up 16.5 percent to $395,000 for single-family homes and 17.5 percent to $275,750 for townhouse-condo properties. Days on Market decreased 16.7 percent for single-family homes and 57.7 percent for townhouse-condo properties. Months Supply of Inventory decreased 50.0 percent for single-family homes and 42.9 percent for townhouse-condo properties.

For many buyers, 2022 marks a new opportunity to make their home purchase dreams a reality. But it won’t be without its challenges. Inventory of existing homes was at 910,000 at the start of the new year, the lowest level recorded since 1999, according to the National Association of REALTORS®, and competition remains fierce. Affordability continues to decline, as inflation, soaring sales prices, and surging mortgage interest rates reduce purchasing power. The sudden increase in rates and home prices means buyers are paying significantly more per month compared to this time last year, which may cause sales to slow as more buyers become priced out of the market.

Wondering what your home is worth in your current market? Get a free market analysis today!