If you’re wondering if now is still a good time to buy and sell in summer of 2022, the short answer is unquestionably, YES.
Over the past few years we have seen unprecedented growth in the USA, especially in some of the bigger markets such as Maricopa County (Phoenix, Arizona.)
There have been so many reports across so many forms of media that’s it can be very hard to tell fact from fiction. What makes a good headline is not always the honest truth.
While many sellers did experience an incredible rate of financial growth, not every buyer over paid, a common term used for buying a home that did not appraise, in fact only above 60% paid over asking price across the board and while there were other uncommon changes to purchases such as removing the right to negotiate if the home inspection turned up less than desirable results, people still bought with confidence and they have seen the over all values increase. Often times the values did appraise as well.
Sellers who were moving out of state to lesser populated areas, less expensive areas, did do very well. Those who remained here in the Valley of the Sun did well (most often) as they were able to take advantage of low interest rates as they transacted.
Yet, at the time of this writing, July of 2022, there has again, been a shift in the mindset of home buyers and sellers.
When shifts like this happen, when demand drops, even slightly, it can be perceived as a big change. For many sellers the promotion of getting tens or hundreds of thousand’s more for their homes was only a marketing pitch. It rarely happened in the real world. True, some buyers who were cash easily nudged a buyer out of the way who might have been financed with more ridged circumstances, but in the end, sellers were betting on an unsustainable idealism opposed to what the reality would be.
The time to buy is very important. Now, instead of competing with a bunch of offers, we may only be competing with a few. There’s a better chance of me negotiating with the listing agent to tailor the offer to please the seller the most, as relationships are so important, and if they feel it’s going to be a smooth transaction, and we have better odds of winning.
As far as interest rates, most people forget that since 1973 the average rate for a 30 year loan, give or take, has been about 7.5% on average.
The low rates that we had experienced were very uncommon, and it’s only a few points higher opposed to what it would have been anyhow. It’s also true that you can refinance in the future, some people do this even two or three times over the course of their homeownership. Lenders are very talented at getting creative with today’s buyer’s.
During the pandemic many people bought a home with a great rate, but they didn’t really like the home as it’s been reported. They simply bought because they felt they had to have a house. That really speaks to how much people are not enjoying renting overall in modern times, especially when the spikes in rental rates excel at such a fast clip.
Overall, the home prices are a little flat now, but there is no crash on the horizon. We will still see appreciation in owning.
In fact, 2/3 of millennial buyers are willing to make a purchase now, and max their budgets to get a home as opposed to renting. The facts being, no equity in a rental home is really hitting home more than ever.
The best approach is to look at your scenario objectively, and completely, manage real expectations and know that you may not see a flood of offers on day one, but if you still have curb appeal, great location, and presentation, it may take a few weeks, but it is going to sell fast.
In some cases there still are multiple offer scenarios of course, and as a buyer it’s a safe bet that if you love a home and are prepared, make a strong play for it as soon as possible and do everything you can to tie it up.
Overall though, in July of 2022, things are shifting to open things back up to more and more families. There are more options to choose form as well.
Please reach out to me today and discuss what the reality of your scenario is. I am always 100% transparent, honest and will guide you correctly each and every time. Thank you, Christy.