Ask any real estate agent and they will tell you a similar sad story.The seller, whose home just hit the market, received an offer which was less than the list price, but felt secure their home would sell quickly and countered for more.For whatever reason, the buyer did not continue to negotiate and moved on.
After a week or two and no other offers, the seller instructed the listing agent to contact the buyer's agent and say that the seller had reconsidered and would now accept their original offer. However, the initial enthusiasm the buyer had was gone and they were looking elsewhere.
This is a story that frequently happens across America, in all price ranges.The lesson to be learned is that sometimes, the first offer is the best.Consider the rationale, a home is fresh on the market and buyers, especially the ones who have lost bids on other homes, act quickly to hopefully avoid some of the competition.
When an offer is not accepted, it voids the original offer and, in this case, the seller makes the buyer a counteroffer; the buyer can accept it, make a counteroffer, or walk away.Even if afterwards, the seller reconsiders and says that he will accept the terms of the original offer, the buyer is under no obligation to accept it.
Alternatively, if the seller accepts the buyer's original offer, a contract has been agreed upon based on the terms within.The house is sold and closed once any contingencies such as financing and/or inspections have been satisfied.
Think of an example where a seller countered for an additional $5,000.If he had accepted the original offer, the home would have been sold.In essence, he bought the home back from himself in hopes of making an extra $5,000.
To put it in perspective, on a $350,000 home, the additional $5,000 would have been 1.4% of the value.As an investor, the risk involved in having to continue to own the property may not be justified by such a low rate of return.Having the property sold may actually provide peace of mind and convenience that far exceeds the $5,000.
When a seller receives an offer, they are faced with three options.
They can accept the offer and the house is sold considering the contingencies can be met.
The seller can reject the buyer's offer outright and wait for an acceptable offer.
The seller can counteroffer the buyer with terms that are agreeable to the seller.
Many agents feel that if the offer is not acceptable, the counteroffer alternative presents a greater likelihood of negotiating to an acceptable agreement between the parties.Every situation is unique, but compromise has brought buyers and sellers to agreement in many situations.
One of the valuable advantages sellers have is their agent's experience and lack of emotional connection to the property.Your agent can provide objectivity and alternatives for you to consider in making you decisions.
Minimalism might not be a big thing where you live, and that's perfectly fine -- while you're living there. But clutter is going to draw buyers' eyes away from the space of the room and their ability to fill it with their stuff, distracting them when you want them to be fully focused on their dream of homeownership.
Garage sales, donation stations and storage units can all be a viable solution for too much stuff, but you need to get it out of the spaces where buyers can see it. (That means the closets, too -- buyers most definitely will open closets and drawers, and if all the clutter is hiding there, it doesn't leave a great impression.)
There's no curb appeal
Ideally, buyers are going to start picturing your house as "theirs" as soon as they step out of the car to see it. One thing that will kill that fantasy before it even gets going is a house with little to no curb appeal.
You don't need to landscape your entire outdoors, but make sure you're addressing the basics. Is the grass alive? If so, has it been mowed? Is the porch clean of clutter and swept? Could a couple of planters with flowers make it look more inviting?
It's not in great condition
Some buyers are going to be fine with a fixer-upper, but working on a house is not everybody's idea of fun. Of course, no seller wants to spend money on something like a new roof or a sewer main when you're about to leave and can't reap the benefits of your investment -- but if you think a buyer is going to feel just fine about moving into a house that needs a major repair, then that could be why none have made a viable offer on your place.
And sometimes the condition can be just fine, but the house hasn't entirely kept up with the neighbors. If most of the homes for sale in your area have newly updated kitchens and bathrooms, and yours are old enough to vote, then the price needs to reflect that or buyers will just move on to the next opportunity.
It smells, or it's noisy
There are a lot of things that can turn buyers off once they actually step inside a house, but two that there's almost no chance of mitigating include noise and odors. Sometimes there's nothing you can do about either -- the jets overhead or the water plant up the road are just going to do their thing sometimes -- but sometimes there's quite a bit you can do to freshen the space up for the senses.
If you have pets, they may have contributed to some of the stink. Get an objective opinion (and don't shoot the messenger!) about how your house smells, and address it if the answer is "not the best."
Dirty or damaged carpets
Carpets show more damage than almost any part of your home. If you have carpeting in your home, it's probably going to be a problem. If the carpets are not stained and are newer, you m might get away with hiring a professional carpet cleaning company. If cleaning does not restore them, you'll need to replace them.
Most homeowners have insurance on their home that additionally, gives them coverage on their personal property.That is the first level of peace of mind to know that it is available to you if there is an unfortunate need for it from a burglary, fire, or some other insured circumstance.
Personal property is handled slightly different than real property.The claims adjustor could start by asking you for a list of the things lost.You are allowed to reconstruct it but there is a distinct possibility that you'll forget things, sometimes for months or years after the claim was settled.
An interesting exercise would be for you to visualize two rooms, possibly, the kitchen and main living area.Without being in the room, create a list of all the personal items in plain sight and those in the closets and cabinets.When you're through with the list, go into each room to check to see what kind of things were not on your list and what the value of those items amounted to.It could be substantial.
Remember, you are entitled to claim them regardless of how long it has been since you used them or if you do not intend on replacing them again.
When filing a claim, the more "proof" you have to substantiate it, the better off you are.Receipts are great but chances are, you may only have them for the big-ticket items.Photographs or video of the different rooms are great records that the items were in your home.
An itemized list of each room with a description of the content, cost and date of purchase, supported by pictures would be ideal.This type of documentation will make filing and settling a claim much easier.The more documentation you have, the more likely you are to have a favorable settlement.
The more expensive the item, the better it would be for you to have receipts, serial numbers and photographs.A simple count of some items like clothing will suffice like four pairs of jeans, 24 dress shirts, etc.More valuable items of clothing like a cashmere jacket or a silk dress should be listed individually.
Depending on the frequency that you purchase new items for the home or possessions, you'll need to consider updating the list and photographs.Moving creates opportunities to get rid of things that haven't been used for years and to acquire things for the new home.It is always a good idea to complete a home inventory after you've moved and settled into your new space.
There is a story of a real estate agent's prayer: "Dear Lord, if I can't be someone's first love, or second wife, at least, please let me be their third REALTOR®." In a normal market with a balanced supply of sellers and buyers, this describes the preference that it might be better to be the third listing agent to help the seller after they became more realistic about their list price.
In today's market, it might have more to do with buyers because of the increased competition, their chance of having an accepted offer is greatly reduced and it is only after they have lost several that they become more aggressive in the negotiations.
Competition for homes being sold has greatly increased over the previous two years, according to a recent REALTORS® Confidence Index Survey from NAR. In April of 2021, there were nearly five offers for every home sold which increased from two offers in 2019 and 2020.
Utah reported the highest number of offers per home sold with seven while Arizona, Georgia, New Hampshire, and Washington had six. California, Colorado, Tennessee, and Texas each had five offers per home sold.
To make their offers appear more attractive, more buyers are making cash offers to eliminate financing contingencies and reduce the chance of rejection. Cash offers represented 25% of offers in April and 21% in the first quarter of 2021 compared to 18% in 2020.
Buyers who are not able to make cash offers are increasing their down payment. Nearly half of homebuyers are putting 20% or more down during the first quarter of 2021. Even first-time buyers are using an 80% mortgage to make their offers more attractive to sellers.
The median days on the market for listings was 17, down from 21 days a year ago. 31% of residential sales were made to first-time homebuyers which is down from 32% in March 2021 and down from 36% one year ago.
While nearly ¾ of homes closed on time, 5% were terminated and 22% were delayed but eventually went into settlement. Appraisal and financing issues were the major contributors to the delayed transactions. The two major factors for the terminated transactions were also appraisals and inspections issues.
Today's environment requires a strong, sensitive agent who understands your goals as well as the intricacies of the market to be able to devise a plan to make it happen. Your agent and their recommendations for the other professionals involved are the boots on the ground necessary whether you are a buyer or a seller.
Looking for a simple way to determine if a rental property will give you the rate of return you want?This modified annual property operating data may be just what you've been looking for.
There are many different rates of return that investor's consider to determine whether a property will generate the yield that they expect.Sometimes the simplest of calculations can tell you whether you want it or not and if you get the other things like tax advantages and appreciation, it just makes it that much better.
The first yield we will look at is commonly called the Cash-on-Cash rate of return.It is calculated by dividing the initial investment, usually down payment and closing costs, into the Cash Flow Before Tax.
To arrive at Net Operating Income, it is simply taking the gross scheduled income, less vacancy allowance and all operating expenses.From that is deducted the annual debt service which is the principal and interest payment times twelve.The remaining amount is referred to as Cash Flow Before Tax.
In this example , the initial investment of the down payment and closing costs, $66,000 was divided into the Cash Flow Before Taxes of $5,468 to get an 8.28% Cash-on-Cash rate of return.
The second yield to be considered is called Equity Build-up.Each payment made on an amortizing mortgage pays a portion toward the principal balance to retire the loan.It is calculated by dividing the initial investment into the principal contribution for the year.
Continuing with the example, $66,000 is divided into the principal reduction for year one of $4,606 to get a 6.98% Equity Build-up rate of return.
This approach is easy to understand because you are not considering depreciation, anticipated appreciation, holding period, recapture of depreciation or long-term capital gains. Simply rent the property, pay the bills and if there is money left over, it pays a return on the initial investment.
The same goes for the Equity Build-up.When you make the payment on the mortgage, the loan is reduced and while you don't have access to the money like cash flow, it is definitely your equity and tangible.
To determine whether an ROI on a rental is good, compare it to what your initial investment is earning currently. Ten-year treasuries are earning less than 2%.Certificates of deposit are earning less than 1%.
For more information, download theRental Income Properties guide and schedule an appointment with your real estate professional.
For generations, people have begun their homeowner experience with a "starter" home. Part of the logic may be that by beginning with a smaller home, they can learn what it takes to run the home and discover some of the unexpected costs that come along with it.A slightly longer view into the future could suggest a different strategy.
As of March 4, 2021, the average 30-year mortgage rate according to Freddie Mac was 3.02%; up .37% from the week of January 7th this year.At the same time, in 2020, the rate was 3.29% and in 2019, it was 4.41%.That is a difference of 28 and 139 basis points.
The principal and interest payment on a $300,000 mortgage would have been $236 higher two-years ago and $44 more one-year ago.Today's low mortgage rates are saving buyers lots of interest especially when you factor in the median tenure for sellers is approximately ten years.Even though prices have increased over the last two years, some people may be able to afford more now with the lower rates.
Anticipating the future wants and needs now may present some opportunities for preparing for the inevitable.By purchasing a larger home today, a buyer can lock in today's low rates and prices to allow themselves room to grow without the expenses of moving.
Each time you sell and purchase a home, there are expenses associated with each side of the transaction.Purchase costs could be 1.5 to 3% while sales expenses could easily be 2.5 times that much.These expenses lower the value of your equity.
Instead of looking at the low mortgage rates as generating a savings from the payment you might normally have to make, consider it an opportunity to purchase more home that will possibly meet your needs for a longer time while eliminating the cost of selling and purchasing in the transition.
Mortgage insurance benefits the lender if a borrower with less than a 20% down payment defaults on their loan.Most conventional mortgages greater than 80% and all FHA loans require the borrower to have this coverage.
Private mortgage insurance on conventional loans can range from 0.5% to 2.25% based on the loan-to-value and the credit worthiness of the borrower.A $350,000 mortgage would have a monthly mortgage insurance premium of $146 a month at the low-end of the scale and over $600 on the high-end.
You may request that your mortgage servicer cancel the PMI when the principal balance reaches 80% of the original value at the time the loan was made.You should have received a PMI disclosure form when you signed the mortgage documents stating the date.If you have made additional principal contributions, it will accelerate the date.
Other criteria considered to cancel the PMI on your loan is:
The request must be in writing.
You must be current on your payments with a good payment history.
The lender may ask that you certify there are no junior liens in effect.
If the lender is concerned that the value has declined, an appraisal may be required to show that it is eligible.
Conventional loans are supposed to remove the mortgage insurance when the unpaid balance is 78% of the original purchase price.
Another possibility is that the lender/servicer must end the PMI the month after you reach the midpoint of your loan's amortization schedule.For a 30-year loan, it would be after the 180thpayment was paid.The borrower must be current on the payments for the termination to occur.
With the rapid appreciation that many homes have enjoyed in recent years, homeowners may be able to refinance their home and if the new mortgage amount is less than 80% of the current appraised value, no mortgage insurance would be required.
The owner would incur the cost of refinancing but eliminate the cost of the mortgage insurance.To calculate the savings, subtract the new principal and interest payment from the old principal and interest with PMI.Then, divide the savings into the cost of refinancing to determine the number of months necessary to recapture the cost.
FHA loans have two types of mortgage insurance premium: up-front and monthly.For loans with FHA case numbers assigned on or after June 3 2013 with LTV% greater than 90%, the MIP will be paid for the entire term of the loan.If that is the case, refinancing on a conventional loan is the only way to eliminate the MIP.For loans with original LTV% less than 90%, the MIP is collected for 11 years until the balance is 78% of the original amount.
When buying a home, purchasers may not have enough resources for a large down payment.It is understandable to use the best mortgage available to buy the home.The next goal should be to manage the mortgage to lower the overall costs.In this article, we explored eliminating the private mortgage insurance.
Many homeowners with mortgages pay for both types of insurance but only one of them protects the owner.
Homeowner's insurance covers damage to your property and losses from fire, burglary, vandalism, and other named natural disasters.When an insured has a loss, they file a claim with the insurance carrier which would be subject to the deductible mentioned in the policy.
If the homeowner has a mortgage on the property, the lender will require that the borrower carry adequate insurance on the property and name the lender as an additional insured.This protects the lender that the home will continue to be sufficient collateral for the loan in case of a loss.
Mortgage insurance is not like homeowner's insurance in that it is solely for the protection of the lender if the borrower defaults on the loan.Usually, lenders require mortgage insurance on any loan greater than 80% loan-to-value.Occasionally, they may require it on some loans less than 80% based on their underwriting requirements and possibly, from anticipated risk from the borrower.
VA loans do not require mortgage insurance.Conventional lenders must remove the mortgage insurance when the loan amortizes below the stated percentage.FHA loans require mortgage insurance for the life of the loan.
When a property appreciates so that when the owners refinance, the loan-to-value ratio is less than 80%, no mortgage insurance would be required.This can be a strong motivation for some owners to refinance to save the cost of the mortgage insurance.
Mortgage insurance premiums are not regulated by law like homeowner's insurance is in most states.Most buyers are concerned about the interest rate on their mortgage, but few question the amount of the mortgage insurance premium.
The homeowner can select the carrier for his homeowner insurance, but the lender determines the carrier for the mortgage insurance.When you are interviewing lenders, the type of insurance that will be required and the price of the mortgage insurance should be included in the discussion.
Buying a home sight unseen might seem like a massive
gamble: plunking down hundreds of thousands (maybe millions) of dollars
on a property you've never set foot in, your fingers crossed it looks
just like the photos and doesn't have major issues! So how lucky do you feel, anyway?
But
during the pandemic—when stay-at-home restrictions made touring a
property difficult and folks were eager to get out of densely populated
cities—greater numbers of buyers than ever before were more game to buy sight unseen.
One of those buyers was Jenny Haiar
of Sioux Falls, SD, who recently went through the virtual process of
purchasing a new condominium in Scottsdale, AZ. She purchased a
one-bedroom, one-bathroom with a view of the mountains.
How have Haiar and other buyers like her successfully bought a home
sight unseen? Sure, the process comes with risks and challenges, but, if
done right, it's possible to land a property that checks all your
boxes. Just be sure to avoid the following mistakes.
1. Not asking the right questions
Zach Combs
at Northrop Realty in Maryland says asking questions is the No. 1 tool
in purchasing a home. The simple equation: the more you ask, the more
comfortable you will be when it comes time to sign the paperwork—so let
the queries fly.
“I ultimately compiled a list of everything I thought of regarding my
day-to-day and work-life needs, goals, and expectations," says Haiar.
“This was about eight months of questions and answers to gain a full
understanding of the homeowners association, rules, policies, buying
process, and more.”
Combs says you can never ask your real estate agent or potential new HOA too many questions, so jot down each and every one.
2. Not hiring the best local agent for the job
A local real estate agent can serve as your eyes and ears when buying a home sight unseen.
Haiar knew exactly what she was looking for, but she didn't live in Arizona.
“I
felt a local agent based in Scottsdale could give me the best overall
bird’s-eye view of properties. I never felt pressured to look at
anything that didn't fit my criteria,” says Haiar.
Vet agents by
looking at personal testimonies, and don't be afraid to ask them for a
list of references. You can use a real estate site (such as this one!) to uncover more info about how long the agents have been at the job, their sales volume, the areas they specialize in, and client reviews.
3. Not fully using all technology
FaceTime
tours, Google Street View, and online property listings are all useful
tools you need to take advantage of when buying a house sight unseen.
“Use
every bit of technology available for the listings you are interested
in," says Combs. "Not all listing agents or sellers pay for a 3D tour,
but if they have one, use it to understand the flow of the house."
He says at the very least, buyers should always video-chat with their agent to see the house and get a feel of the space.
4. Not demanding a floor plan
While a floor plan may not always be available, it is an important detail buyers should not overlook.
“If
you have an open space in your current dwelling, either outside or
inside, where you can tape off the actual room sizes, then you can make a
mock layout with your furniture. This will help you truly understand if
the space really can work for you and your family,” says Combs.
If
a floor plan is unavailable, ask if your agent can measure the rooms
and give a crude layout of the space. If an agent can get the
measurements, Combs recommends buyers use Floorplanner.com, a free tool that can help you visualize your potential new home.
Understanding
the floor plan was crucial for Haiar. When coordinating furniture
delivery, she says, it was important to know the items fit in her space.
5. Not getting an appraisal and a home inspection
Giving a home a good walk-through is important with any home purchase, but buying sight unseen means calling in the experts.
“If
you are purchasing the home with a loan, your lender will require an
appraisal for them to be able to close the loan,” says Combs. “If you're
buying with cash, then it would be up to you."
But regardless of
how you're financing the purchase, Combs says buyers should get a home
inspection when buying sight unseen, “so you know exactly how much work
the house needs and if you are comfortable handling those repairs.”
Haiar
says it’s also important to have an insurance broker review insurance
requirements and your HOA policy and coverage (if applicable).
As
much as people will tell you otherwise — when it comes to Christmas
trees, size does matter. Newsflash: Bigger is not always better! A grand
tree in a 900-square-foot apartment will feel overwhelming, while a
mid-size tree in a large living room will appear out of place and
awkward.
The Solution: Stick to Scale
Keep
the size of your space, and the height of your ceiling, in mind when
selecting a tree. For petite pads, try using a tabletop tree to create a
festive vignette for your entry console. If you have soaring ceilings
in your living room, but aren’t ready to commit to a 10-foot tree, get
creative with your placement. Set up your tree in the kitchen — Santa
will appreciate the convenience to his milk and cookies!
3. Red and Green Everything
There
is certainly nothing wrong these traditional holiday colors but why
stick to the same old thing when there are so many other color
combinations to choose from?
The Solution: Try New Colors
Mix things up around the holidays and don’t be afraid to break out of the red and green box.
4. Pet Hazards
Around
the holidays, it’s important to keep the safety of our furry friends in
mind. The main things to look out for is your pet getting tangled in
holiday lights and potential eating hazards such as the water in the
Christmas tree stand, plants (poinsettias, holly and mistletoe), and
candy left out in the open.
The Solution: Remove Dangerous Items
Avoid
poisonous plants if you have pets and don't leave food unattended. Take
every precaution you can for the safety of your pets as well as those
who may be visiting because the last thing you want is an emergency trip
to the vet.
5. Dry Christmas Tree
There's nothing sadder than a Christmas tree that starts to wither away before the big day arrives. Alternative and plastic trees are fine but how do you make sure your real tree lasts through the holidays?
The Solution: Water Frequently
Fresh-cut Christmas trees require a lot of water to stay fresh so it's best to keep the bottom few inches of the stump submerged at all times. Follow these tips if you want to keep your living tree for years to come.
Winter is traditionally real estate's slow season.
Between the cold weather and the holidays, the housing market typically
plunges into a hibernation of sorts, with both buyers and sellers
shelving any major real estate moves until spring.
This
winter's real estate market, however, is shaping up to be unlike any
other before it—and, contrary to what some may have feared, is slated to
be an excellent time to sell a home. In fact, Lawrence Yun, chief economist at the National Association of Realtors, predicts “it will be one of the best winter sales years ever.”
Why?
Chalk it up to a perfect storm of low mortgage interest rates, sparse
housing inventory, plus a pandemic that's fundamentally changed how,
when, and where buyers are shopping for homes.
So if you've assumed you should put your home-selling plans on hold
until spring, read on for a surprising reality check on all the reasons
this winter could be a great time to put your house on the market.
Pandemic lockdowns have created pent-up buyer demand
While
spring is typically real estate's busy season, the "silent spring" of
2020 saw the housing market grind to a near halt amid pandemic-mandated
lockdowns. This, in turn, created pent-up demand to purchase property
that is only now being unleashed.
“We currently see buyers sticking around in the housing market much later than we usually do this fall,” says Danielle Hale, chief economist at realtor.com®.
“If that trend continues, we will see more buyers in the market this
winter, too. So this winter is likely to be a good time to sell.”
"There are plenty of people in the pipeline ready to hit the market this late autumn and winter," Yun agrees.
Many real estate agents have noticed this glut of eager buyers first-hand.
“Winter is usually a slower season, but this year we're not seeing any sign of letting up,” says Matt van Winkle, a real estate broker
and owner of Re/Max Northwest Realtors in Seattle. “The selling season
was delayed because of COVID lockdowns and stay-at-home orders, so
several months of usual busy sales periods were delayed.”
This buyer demand likely won’t wane anytime soon.
“We will see an extended purchase season in 2020 and into 2021,” says Shelby McDaniels, channel director of corporate home lending at Chase.
Lockdowns are forcing many buyers to upsize their homes
COVID-19
has not only created pent-up demand, but many buyers are also in the
market purely because they're working/schooling from home and realizing
their space is no longer big enough—particularly now that the
temperature's dropping so they can't easily escape to their back patio
to catch up on emails alone.
“With people spending so much time in
their homes, including working from home and virtual schooling, there's
a great emphasis on being happy there," says Matt Curtis, owner of Matt Curtis Real Estate, in Huntsville, AL. Lack of space is a complaint agents hear more often now.
And
if people are allowed to continue working from home rather than
commuting to an office, they might also realize that they can shop for
homes farther outside cities—great news for home sellers who live in
more remote areas.
“Because
the number of homes available is currently at a record low, even if we
see some improvement, which I expect, there will still be relatively few
homes for sale,” Hale says. “That will keep upward pressure on home
prices and help ensure that homes continue to sell quickly."
"Inventory is low, so the overall advantage is with the seller,” agrees Yun.
Tracy Jones, a real estate agent
with Re/Max Platinum Realty in Sarasota, FL, says buyers have so few
homes to choose from these days that they’re feeling forced to make
quick decisions about whether to make an offer, or risk losing out on
the chance. Nationally, homes spent an average of 54 days on the market
in September, 12 fewer days than last year, according to the realtor.com
trends report.
“The buyers I have worked with this year only had a
handful of homes to look at,” Jones says. “They had no time to wait and
talk about it, and they had to fight other buyers if they wanted to buy
them.”
Sellers can get top dollar for their homes
It's simple supply and demand: Low supply and high demand are bound to drive up home prices, so sellers stand to make a killing.
Across the country, median home listing prices jumped 11.1% in September compared with a year ago, to $350,000, according to realtor.com. Price per square foot increased by 13.9%.
“Sales
prices and home values remain strong,” McDaniels says. And since there
are so many offers on the table, “sellers can call the shots regarding
terms of contract and repairs.”
The only challenge sellers face with such low inventory—if you can even call it a challenge—is dealing with too many offers at once, says Curtis.
“The
challenge they face is navigating multiple offers and not accepting an
offer too quickly to help ensure they get the most money for their
home,” he says.
Mortgage interest rates are low
Although
buyers will face stiff competition, it's not all bad news for them. For
one, despite high home prices, record-low interest rates mean they'll
save a ton of money.
Interest rates on a 30-year fixed-rate loan were 2.8% as of Oct. 22, according to Freddie Mac.
This
“boosts buyer home purchasing power,” Hale says. “In fact, despite
double-digit increases in home prices this year compared to last year,
today's home buyers are likely actually paying slightly less on their mortgage each month, thanks to much lower mortgage rates.”
The
Federal Reserve has continued to lower interest rates this year to keep
the economy going during the COVID-19 crisis, says McDaniels.
“Even
before the COVID-19 pandemic, economists and real estate professionals
predicted mortgage interest rates would remain below 4% in 2020,” she
says. “This means buyers that might have waited will consider entering
the market this year.”
Any economic shift likely won’t be felt until spring
Although
unemployment continues to rise due to COVID-19 layoffs, Hale says this
could affect the real estate market, but the effects likely won’t be
felt for a few months.
“A worsening unemployment rate
would lead to a slowdown in the housing market and home sales, but I
don’t expect that to happen immediately, more likely in the spring,”
Hale says. This could create a slower start to the spring home-buying
season.
Plus, if another round of stimulus money appears, this would fuel consumer spending.
“This would be a good thing for the housing market and the economy at large,” Hale says.
