Four Key Factors of the Summer Real Estate Market
The real estate market is constantly influenced by economic conditions, housing demand, interest rates, and more. REALTORS® should stay up to date to help homebuyers and sellers alike reach their goals in the ever changing market. SMART Real Estate uses years of experience and reliable research to help you stay briefed with the latest market trends. In this blog post, we’ll explore 4 key factors and predictions for this summer’s buyers and sellers market.
1.Continued Market Growth
This summer we expect to continue to see demand for properly positioned homes, giving sellers positive leverage to list their homes. An inventory shortage of homes in certain price points, low unemployment rates, and a changing landscape of the workforce are a few of the factors we credit this demand to.
2. Rising Mortgage Rates
Following a period of historically low interest rates in 2020 and 2021, the Federal Reserve's decision to gradually increase rates is expected to continue if inflation does not cool. Higher mortgage rates can impact home affordability, potentially slowing down the pace of homebuyer demand. This rise in mortgage rates has affected buyer purchasing power, a factor sellers should take into account when positioning their home on the market.
3. Buyers Looking for More out of a House
As a result of COVID-19, homebuyers are showing a greater interest in properties that offer home offices, roomy outdoor spaces, and flexible layouts that can accommodate a variety of needs. The pandemic helped homeowners view their homes in more dynamic ways, from an office to an at-home school setting. Sellers should consider these preferences when staging their homes to attract potential buyers.
4. Embracing Sustainability
Homebuyers and builders are increasingly interested in energy-efficient features, eco-friendly materials, and sustainable practices especially as they move from states where these are common. Many buyers are willing to pay more on the front end for green-focused features including water recycling systems, smart home technology, and more. Sellers who invest in sustainability will likely reap the benefits in the end.
Summer continues to be a busy time for the real estate market, even as it evolves as a result of market conditions and ever-changing buyer preferences. In spite of rising mortgage rates and high buyer expectations, we expect steady growth. However, even when the market isn’t so hot, finding a safe and happy place to call home will continue to be the American dream for so many, which is why it’s always important to be a trusted source for buyers and sellers.
If you need support to be that trusted source, SMART Real Estate is here to help you as a broker, coach and trainer. Let’s connect to find a smart solution to your real estate problems.
