In today’s housing market, homeowners have a great opportunity to sell their house and receive the best terms for their personal situation. That’s because there’s a limited number of homes for sale, which is creating competition among buyers. Right now, homebuyers want three things:
These buyer needs give you an amazing advantage – also known as leverage – when you sell.
What Does This Mean for Sellers Today?
You might already realize this enables you to sell at a good price, but you’re also in a great position to get the best terms to suit your needs.
According to the latest Realtors Confidence Index from the National Association of Realtors (NAR), the average home sold is receiving 4.8 offers. That’s why there’s a good chance you’ll get offers from multiple buyers who are willing to compete for your house. When you do, you should look closely at the terms of each offer to find out which one has the best options for you.
And if you have questions at any point in the process, remember your trusted real estate advisor can help. They’re experts who understand the fine print, know how to compare the terms of various offers, and will help you select the best one for your situation.
If you’re thinking of selling your home, know buyer demand in today’s market gives you a great opportunity to get the best terms and price when you sell your house. Let’s connect today to discuss how much leverage you have as a seller in today’s market.
Choosing a realtor to represent you is one of the most important decisions you make. As a buyer they will help you determine your offer price, so you don’t overpay. As a seller, they will help to ensure you will get the best price for your home. A local realtor knows the area, the neighborhoods, the community, and its resources. Therefore, they can direct you to the best areas based on your needs and wants.
When choosing Green Team New Jersey Realty to represent you, you get the top agents in Sussex County as a buyer or a seller. Many, if not all, of the sales associates are long-time residents entrenched within the community. Thus, they have an edge with an unparalleled knowledge base of the area. Due to this, Green Team New Jersey Realty has soared to the top of the real estate ranks in Sussex County. Not only does Green Team Realty compete with the nation’s top-named regional and national franchised agencies but out-sells many of them.
Green Team New Jersey Realty is in the top 1% Real Estate Offices in Sussex County, NJ. Dedication to clients and superior knowledge of the area and marketing is why they are chosen to represent more Home Buyers than 99.3% of all other Real Estate Offices and Green Team sells more listings than 98.4% of all Real Estate Offices in Sussex County, NJ. Houses listed with Green Team sell faster than the average for all other Real Estate Offices in Sussex, NJ. Green Team New Jersey is the #1 Real Estate Office in Vernon, NJ. In the past year alone they have had over $69,000,000 in sales volume.
While you may have seen recent stories about the volume of foreclosures today, context is important. During the pandemic, many homeowners were able to pause their mortgage payments using the forbearance program. The goal was to help homeowners financially during the uncertainty created by the health crisis.
When the forbearance program began, many experts were concerned it would result in a wave of foreclosures coming to the market, as there was after the housing crash in 2008. Here’s a look at why the number of foreclosures we’re seeing today is nothing like the last time.
1. There Are Fewer Homeowners in Trouble
Today’s data shows that most homeowners are exiting their forbearance plan either fully caught up on payments or with a plan from the bank that restructured their loan in a way that allowed them to start making payments again. The graph below depicts those findings from the Mortgage Bankers Association (MBA):
The same MBA report mentioned above estimates there are approximately 525,000 homeowners who remain in forbearance today. Thankfully, those people still have the chance to work out a suitable repayment plan with the servicing company that represents their lender.
2. Most Homeowners Have Enough Equity To Sell Their Homes
For those who are exiting the forbearance program without a plan in place, many will have enough equity to sell their homes instead of facing foreclosures. Due to rapidly rising home prices over the last two years, the average homeowner has gained record amounts of equity in their home.
Marina Walsh, CMB, Vice President of Industry Analysis at MBA, says:
“Given the nation’s limited housing inventory and the variety of home retention and foreclosure alternatives on the table across various loan types, . . . Borrowers have more choices today to either stay in their homes or sell without resorting to a foreclosure.”
3. There Have Been Fewer Foreclosures over the Last Two Years
One of the seldom-reported benefits of the forbearance program was it gave homeowners facing difficulties an extra two years to get their finances in order and work out a plan with their lender. That helped prevent the foreclosures that normally would have come to the market had the new forbearance program not been available.
Even as people leave the forbearance program, there are still fewer foreclosures happening today than before the pandemic. That means, while there are more foreclosures now compared to last year (when foreclosures were paused), the number is still well below what the housing market has seen in a more typical year, like 2017-2019 (see graph below):
4. The Current Market Can Easily Absorb New Listings
When the foreclosures in 2008 hit the market, they added to the oversupply of houses that were already for sale. It’s exactly the opposite today. The latest Existing Home Sales Report from the National Association of Realtors (NAR) reveals:
“Total housing inventory at the end of March totaled 950,000 units, up 11.8% from February and down 9.5% from one year ago (1.05 million). Unsold inventory sits at a 2.0-month supply at the present sales pace, up from 1.7 months in February and down from 2.1 months in March 2021.”
A balanced market would have approximately a six-month supply of inventory. At 2.0 months, today’s housing market is severely understocked. Even if one million homes enter the market, there still won’t be enough inventory to meet the current demand.
If you see headlines about the increasing number of foreclosures today, remember context is important. While it’s true the number of foreclosures is higher now than it was last year, foreclosures are still well below pre-pandemic years.
If you have questions, let’s connect to talk through the latest market conditions and what they mean for you.
According to a recent survey from the National Association of Realtors (NAR), one of the top challenges buyers face in today’s housing market is finding a home that meets their needs. That’s largely because the inventory of homes for sale is so low today.
If you’re looking to buy a home, you may have noticed this yourself. But there is good news. Recent data shows more sellers are listing their houses this season, which may give you more options for your home search.
Early Signs Inventory May Be Growing
The latest data from realtor.com shows the number of listings coming onto the market, known in the industry as “new listings,” has increased since the start of the year (see graph below):
This indicates more sellers are listing their homes for sale each month this year. And according to realtor.com, this growth is expected to continue. Their research finds the majority of potential sellers plan to list their homes over the next six months. Realtor.com says:
“. . . markets may see a noticeable bump in the number of homes for sale as we move through spring and into summer. A majority of homeowners planning to sell this year indicated that they aim to list in the next six months, with almost 10% having already placed their properties on the market.”
Homes Are Still Selling Quickly
But while new listings are increasing, it’s important to know they’re also selling quickly. The latest Realtors Confidence Index from NAR shows the median days on market for recently sold homes since the beginning of the year (see chart below). The time on market has decreased month-over-month. That means homes are selling even faster than they did the previous month.
What That Means for You
While a low-inventory market is difficult to navigate as a buyer, there is hope. The growing number of new listings and the expectation more sellers will list their homes in the coming months is great news if you’ve had a hard time finding a home that fits your needs. Just remember, those new listings are going fast. That means you’ll want to keep your foot on the gas and be ready to act if you find a home you love this season.
Your agent can help you stay on top of the latest listings in your area so you can find the home that’s right for you and submit your strongest offer as quickly as possible.
If you’ve been having a hard time finding your dream home, stick with your search. More options are coming to market and your ideal home could be one of them. Let’s connect so you can stay up to date on the latest listings in our market, so you can be ready to move fast when you find the one that’s right for you.
Many people are wondering: will home prices fall this year? Whether you’re a potential homebuyer, seller, or both, the answer to this question matters for you. Let’s break down what’s happening with home prices, where experts say they’re headed, and how this impacts your homeownership goals.
What’s Happening with Home Prices?
Home prices have seen 121 consecutive months of year-over-year increases. CoreLogic says:
“Price appreciation averaged 15% for the full year of 2021, up from the 2020 full year average of 6%.”
So why are prices climbing so much? It’s because there are more buyers than there are homes for sale. This imbalance is expected to maintain that upward pressure on home prices because homes for sale are a hot commodity in today’s low-inventory housing market.
Where Do Experts Say Prices Will Go from Here?
Experts say the housing market isn’t set up for a price decline due to that ongoing imbalance between supply and demand. In the latest home price forecasts for 2022, they’re calling for ongoing appreciation throughout the year (see graph below):
While the experts are forecasting more moderate price appreciation, the 2022 projections show price gains will remain strong throughout this year. First American explains it like this:
“While house price growth is expected to moderate from the rapid pace of 2021, strong home buyer demand against a backdrop of historically tight inventory of homes for sale will likely keep appreciation positive in the coming year.”
What Does That Mean for You?
The biggest takeaway is that none of the experts are projecting depreciation. If you’re a homeowner thinking about selling, the higher price appreciation over the last two years has been great for your home’s value, but it’s also something you should factor in when planning your next steps. If you’ll also be buying a home after selling your current house, you shouldn’t wait for prices to fall. Waiting will only cost you more in the long run because climbing mortgage rates and rising home prices will have an impact on your next home purchase. Freddie Mac says:
“If you’re thinking about waiting until next year and that maybe rates are higher, but you’ll get a deal on prices – well that’s risky. It may be more advantageous to purchase this year relative to waiting until 2023 at this time.”
If you’re thinking of selling to move up, you shouldn’t wait for prices to fall. Experts say prices will continue to appreciate this year. That means, if you’re ready, buying your next home before prices climb further may make the most financial sense. Let’s connect to begin the process of selling your current home and looking for your next one before prices rise higher.
If you’re planning to buy a home, it’s critical to understand the relationship between mortgage rates and your purchasing power. Purchasing power is the amount of home you can afford to buy that’s within your financial reach. Mortgage rates directly impact the monthly payment you’ll have on the home you purchase. So, when rates rise, so does the monthly payment you’re able to lock in on your home loan. In a rising-rate environment like we’re in today, that could limit your future purchasing power.
Today, the average 30-year fixed mortgage rate is above 5%, and in the near term, experts say that’ll likely go up in the months ahead. You have the opportunity to get ahead of that increase if you buy now before that impacts your purchasing power.
Mortgage Rates Play a Large Role in Your Home Search
The chart below can help you understand the general relationship between mortgage rates and a typical monthly mortgage payment within a range of loan amounts. Let’s say your budget allows for a monthly mortgage payment in the $2,100-$2,200 range. The green in the chart indicates a payment within that range, while the red is a payment that exceeds it (see chart below):
As the chart shows, you’re more likely to exceed your target payment range as mortgage rates increase unless you pursue a lower home loan amount. If you’re ready to buy a home, use this as your motivation to purchase now so you can get ahead of rising rates before you have to make the decision to decrease what you borrow in order to stay comfortably within your budget.
Work with Trusted Advisors To Know Your Budget and Make a Plan
It’s critical to keep your budget top of mind as you’re searching for a home. Danielle Hale, Chief Economist at realtor.com, puts it best, advising that buyers should:
“Get preapproved with where rates are today, but also consider what would happen if rates were to go up, say another quarter of a point, . . . Know what that would do to your monthly costs and how comfortable you are with that, so that if rates do move higher, you already know how you need to adjust in response.”
No matter what, the best strategy is to work with your real estate advisor and a trusted lender to create a plan that takes rising mortgage rates into consideration. Together, you can look at your budget based on where rates are today and craft a strategy so you’re ready to adjust as rates change.
Even small increases in mortgage rates can impact your purchasing power. If you’re in the process of buying a home, it’s more important than ever to have a strong plan. Let’s connect so you have a trusted real estate advisor and a lender on your side who can help you strategize to achieve your dream of homeownership this season.
Established in 2005 by Warwick-native, Geoffrey Green, Green Team Realty began as a locally owned and operated full-service agency. Since opening, Geoff and his team have developed revolutionary operations for Realtors and their buyers and/or sellers from across the region allowing it to soar the ranks; currently in the top 1% of all Real Estate offices in both Sussex County, NJ and Orange County, NY.
“It is time for us to take the next step in terms of growing our organization” says Green. “We have proven over the course of time that we can deliver a great environment for Real Estate Agents to thrive, and for them to, in turn, deliver an exceptional experience to all of their clients. Promoting Vikki Garby to President of Green Team Realty will allow us to seek out new opportunities for more Sales Associates in new locations. Vikki is definitely the right person to help us achieve the intended growth we are seeking.”
Geoff Green has dedicated his professional career to building great businesses; he is also the co-Founder and CEO of Nuop, Inc. NuOp is a digital marketplace where Members make money by exchanging business opportunities with one another. With more growth for NuOp on the horizon, Geoff is appointing Vikki Garby as President of Green Team Realty which will provide him with more time and energy to focus on building a second business. Vikki Garby will not only continue what has been created with Green Team Realty, but will focus on enhancement and grow its influence in the region. Geoff will remain as the Real Estate Broker of record for all Green Team agencies and continue to oversee all related operations.
“I am extremely excited to take on this new and challenging role. Geoff has big shoes to fill. I have learned so much from him since joining his brokerage and I intend to exceed his expectations with this incredible opportunity.” Garby stated.
Vikki Garby is a successful career woman, happily married and a mother of two, thriving children. She graduated from Cornell University in 1997 with a focus on Finance. After graduation, she began her career in Investment Banking as an Analyst with Deutsche Bank. With a drive for success, she worked up the ranks to Associate and soon after, Vice President of the Structured Capital Markets division. In 2007, still with Deutsche Bank, she shifted over to their Longevity Derivatives Group where she joined as a Vice President and was soon promoted to Director. Here she structured, negotiated and executed multi-dimensional programs for the origination of premium finance loans and annuities which led the team in obtaining approval to sell longevity/mortality products in over a dozen countries.
The financial crisis of 2008, left many companies with no other option than to downsize; Deutsche Bank was no exception. Upon closing the Longevity Derivatives Group, Vikki was laid off. She didn’t allow that to stop the path she was on. With connections from her previous employer, Vikki began her own consulting firm called VAG Consulting acting as CEO/Founder.
In the meantime, Vikki and her husband pursued Real Estate Investments. With multiple properties purchased and subsequently rented, they decided it would make the most financial sense for Vikki to obtain her real estate license. With that, Vikki entered the Real Estate world.
Since joining Green Team Realty, Vikki has become a top salesperson, developed a desired reputation and is the recipient of many sales awards. She has been a top 10 finisher for the past 6 years at Green Team New York Realty. She is also the most prolific commercial real estate producer in the history of Green Team Realty.
In addition to her career success, Vikki has dedicated her free time to the community. Her volunteer experience is extensive and includes acting roles as: a board member of the Warwick Foundation for Excellence in Learning, First Lego League Coach, Cub Scout Den Leader, Sunday School Teacher, Treasurer of Kings Elementary PTA, and Treasurer then President of the Warwick Crew Booster Club.
Upon her transition into presidency, Vikki will continue to work with current and past clients to ensure their real estate needs are met.
“She is clearly a rising star in this industry and she is ready to take on the role of President at Green Team Realty. We are just thrilled to see how far Vikki can lead our organization.”, said Green.
“My goals are to make sure our agents continue to be well supported as they work towards their career goals. I will also seek new tools and opportunities to keep our agency one step ahead so we can continue to provide the very best service to our clients. Growing Green Team Realty will occur strategically and in a controlled manner such that our level of service and the quality of our agents shall not waver.” said Garby.