Real Estate Matters

from Valley Business FRONT, Issue 169, October 2022

Career FRONT

How is the real estate market?

Due to the average rate of a 30-year fixed rate being almost double than it was a year ago, if you are buying a $400,000 home it costs roughly $700 more a month than it did in January. It does not matter much right now it seems: statistics show it as reported nationwide in the latest NAR Existing-Home Sales data in the US, inventory remains in tight supply, which means homes are still moving at a fast pace despite the recent rise in rates and home prices. The median days on the market is just 14 days. If you price your home well in the Valley this is true too.

Dave Ramsey recently said “There is a lot of negative news. Interest rates do not cause home prices to go up. In 2020 and 2021, interest rates were at an all-time low and have since risen. Here's what this means: While it feels like interest rates are at an all-time high, they’re not. They were around 17% in the ‘80s! Don’t wait to buy a home until interest rates and prices drop— these rates are the norm compared to the past two years.

According to Realtor.com “27% of buyers are actually more likely to buy amid a recession. That’s up from 24.7% from last year.” I have listed over 12 houses in the Roanoke Valley in the past couple of months and all are under contract but… ones that need a price improvement.

According to Zillow “There are a number of reasons why a pending home sale would fall through, and one is because of contract cancellations from buyers taking back control of negotiating power.” On June 13, the buyer’s contract here in The Roanoke Valley changed. It now allows for buyers to ask sellers for any repair they want (not cosmetic/grandfathered working systems) and if they cannot come to a meeting of the minds, both can walk away. The buyer can also check a box where they can walk away from a home inspection for any reason whatsoever like a loose doorknob. I prefer not to accept those contracts for my sellers and leave room for negotiation.

Overall, if you want to list your house it may take a couple of more weeks to sell it, buyers are negotiating more, and if it’s priced right, you are in good shape.