“Nancy is an amazing agent!. She went “above and beyond” to help us find the perfect home. She took the time to show us many houses. She was patient while we decided. She worked with and for us every step of the way. I recommend her to anyone looking to buy here. We moved from Connecticut and she educated us on the area so we were comfortable moving somewhere we had never been before.” Duncan Brown - Murrells Inlet, SC
Nancy Aborn Wuennemann
The biggest challenge the housing market’s facing is how few homes there are for sale. Mark Fleming, Chief Economist at First American, explains the root causes of today’s low supply:
“Two dynamics are keeping the existing-home inventory historically low – rate-locked existing homeowners and the fear of not finding something to buy.”
Let’s break down these two big issues in today’s housing market.
According to the Federal Housing Finance Agency (FHFA), the average interest rate for current homeowners with mortgages is less than 4% (see graph below):
Today, the typical mortgage rate offered to buyers is over 6%. As a result, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. This is a situation known as being rate locked.
When so many homeowners are rate locked and reluctant to sell, it’s a challenge for a housing market that needs more inventory. However, experts project mortgage rates will gradually fall this year, and that could mean more people will be willing to move as that happens.
The Fear of Not Finding Something To Buy
The other factor holding back potential sellers is the fear of not finding another home to buy if they move. Worrying about where they will go has left many on the sidelines as they wait for more homes to come to the market. That is why, if you are on the fence about selling, it is important to consider all your options. That includes newly built homes, especially right now when builders are offering concessions like mortgage rate “buydowns.”
What Does This Mean for You?
These two issues are keeping the supply of homes for sale lower than pre-pandemic levels. But, if you want to sell your house, today’s market is a sweet spot that can work to your advantage. I can help you explore your options. This could include leveraging your current home equity.
According to ATTOM:
“. . . 48 percent of mortgaged residential properties in the United States were considered equity-rich in the fourth quarter, meaning that the combined estimated amount of loan balances secured by those properties was no more than 50 percent of their estimated market values.”
This could make a major difference when you move. Work with me to learn how putting your equity to work can keep the cost of your next home down.
The biggest challenge in the housing market is how few houses there are for sale compared to the number of people who want to buy.
The number of homes for sale is up from last year but below pre-pandemic numbers, and that means we are still in a sellers’ market.
The housing market needs more homes for sale to meet the demand of today’s buyers. If you have thought about selling, let’s connect today.
Recent changes in home prices are top of mind for many as the housing market begins gearing up for spring. It can be hard to navigate misleading headlines and confusing data, so here is what you should know about today’s home prices.
Local price trends still vary by market. But looking at national data, Nataliya Polkovnichenko, Ph.D., Supervisory Economist at the Federal Housing Finance Agency (FHFA), explains:
“U.S. house prices were largely unchanged in the last four months and remained near the peak levels reached over the summer of 2022. While higher mortgage rates have suppressed demand, low inventories of homes for sale have helped maintain relatively flat house prices.”
Month-over-month home price changes can be seen in the chart. The data also shows that price depreciation peaked around August. Since then, any depreciation has been even milder. In other words, today’s home prices are not in a freefall.
What Does This Mean for You?
If you currently own your house, you may be concerned about even the smallest decline in prices. But keep in mind how much home values grew over the last few years. Compared to that growth, any declines we are seeing nationally are likely to be minimal.
Selma Hepp, Chief Economist at CoreLogic, shares:
“. . . while prices continued to fall from November, the rate of decline was lower than that seen in the summer and still adds up to only a 3% cumulative drop in prices since last spring’s peak.”
If you are planning to make a move to the Myrtle Beach area in 2023, let's talk about market trends.
If you are thinking about retirement or have already retired this year, you may be planning your next steps. One of your goals could be selling your house and finding a home that more closely fits your needs. Fortunately, you may be in a better position to make a move than you realize. Here are a few things to think about when making that decision.
Consider How Long You’ve Been in Your Home!
From 1985 to 2008, the average length of time homeowners typically stayed in their homes was only six years. According to the National Association of Realtors (NAR), that number is rising today, meaning many homeowners are living in their houses even longer.
When you live in a home for a significant period of time, it is natural for you to experience a number of changes in your life while you are in that house. As those life changes and milestones happen, your needs may change. If your current home no longer meets your needs, you may have better options waiting for you.
Consider the Equity You’ve Gained
Additionally, if you have been in your home for more than a few years, you have likely built up significant equity that can fuel your next move. That is because the longer you have been in your home, the more likely it has grown in value due to home price appreciation. Data from the Federal Housing Finance Agency (FHFA) illustrates that point (see graph below):
While home price growth varies by state and local area, the national average shows the typical homeowner who has been in their house for five years saw it increase in value by over 50%. And the average homeowner who’s owned their home for 30 years saw it almost triple in value over that time.
Consider Your Retirement Goals
Whether you are looking to downsize, relocate to a dream destination, or move so you live closer to loved ones, that equity can help you achieve your homeownership goals. NAR shares that for recent home sellers, the primary reason to move was to be closer to loved ones. Retirement also played a large role for those moving greater distances.
Whatever your home goals are, I can work with you to find the best option. I can help you sell your current house and guide you as you buy the home that is right for you and your lifestyle today. Retirement can bring about major changes in your life, including what you need from your home. Let’s connect to explore your opportunities in the Myrtle Beach Market.
1232-B Farrow Parkway
Myrtle Beach, SC 29577