What is 2022 going to bring for house values?
This seems to be the Million Dollar question I get asked constantly. The real estate market has gone though some major changes over the past 2 years. COVID definitely had a big impact on the housing market and if you sold your house this past year, you probably did well on value and sale price. According to a report by CoreLogic, home prices nationally have risen 18% since this time last year. That is a huge number in just 12 months. In 2021 (as of the day I am writing this) my average days on the market with a house before accepting an offer was 5 days. My percentage of the list price to the final sale price was 102.78%. Which means the average sale went over the asking price we listed the house for in approximately 5 days. I have sold over 40 houses so far this year with another 12 scheduled to close by the end of 2021. With the various range of prices, sizes and styles of homes that I have sold, I feel this is a great representation of the market this year in the Sterling and Princeton area.
What does this mean for next year? In my opinion, house values are going to continue to stay strong. I don’t think we will continue to see the high numbers of multiple offers and bidding wars that we experienced this year but the value of homes in Sterling and Princeton should stay high. Especially with the continued low inventory we are working with.
How will this impact you? If you are a seller, this means it is still a great time to sell your property. If you are thinking about selling in 2022 now would be a great time to start planning for spring. If you need to work on some projects, call me first so I can tell you if your projects are worth the time and money you are planning to invest in upgrades prior to listing. You might be surprised at what you need to do and what is not necessary to maximize your sale price. I have the expertise to tell you how much money to invest, what personal photos and artwork needs to be taken down, what colors to paint, which furniture to remove and many other tips to get your house ready.
If you are a buyer, this means you should not wait to buy your next property. With most experts agreeing that house prices will hold their value if not increase slightly, you are not going to save money by waiting until things calm down. Plus, the interest rates are going to start to increase which will impact what you can afford monthly and might adjust the amount you can get approved for in your new mortgage.
Many buyers felt they wanted to wait out this market and buy after the market slows down. There is no indication the market is going to decrease any time soon. In my opinion, now is a great time to buy. Inventory is a bit higher right now than it was this spring. That means more to choose from and less bidding wars to compete in. This time of year, many buyers will get distracted with the upcoming holidays and push off buying a new property. Less buyer competition for you means more potential of getting your dream house. If you would like to sit down for a buyer consultation to discuss ways to stand out in this market, feel free to contact me at 978-407-2568 or firstname.lastname@example.org. It is important to be educated on what a buyer needs to know in a sellers’ market. Many buyers are unaware of various tricks to make your offer more competitive like appraisal gaps, home inspection for information only or information up to a certain amount to show a seller you are not going to be nitpicky. Tactics like this make a big difference in multiple offer situations. Make sure you meet with an agent that can give you all the information you need to submit a solid offer. Fall and winter are a great time to look for your new home. Finding one now means you might be in your dream home before 2022!