Sellers Have an Opportunity with Today’s Home and Condo Prices
As mortgage rates started to rise this year, many homeowners began to wonder if the value of their homes or condos would fall. Here’s the good news. Historically, when mortgage rates rise by a percentage point or more, home values continue to appreciate. The latest data on home and condo prices seems to confirm that trend.
According to data from CoreLogic, home price appreciation has been re-accelerating since November. The graph below shows this increase in home price appreciation in green:
This is largely due to an ongoing imbalance in supply and demand. Specifically, housing supply is still low, and demand is high. As mortgage rates started to rise this year, many homebuyers rushed to make their purchases before those rates could climb higher. The increased competition drove prices up even more. Selma Hepp, Deputy Chief Economist at CoreLogic, explains:
“Home price growth continued to gain speed in early spring, as eager buyers tried to get in front of the mortgage rate surge.”
And experts say prices are forecast to continue appreciating, just at a more moderate pace moving forward. A recent article from Fortune says:
“. . . the swift move up in mortgage rates . . . doesn’t mean home prices are about to crash. In fact, every major real estate firm with a publicly released forecast model . . . still predicts home prices will climb further this year.”
What This Means for You
If you’re thinking about selling your condo or house, you should know you have a great opportunity to list your home and capitalize on today’s home price appreciation. As prices rise, so does the value of your condo or home, which gives your equity a big boost.
When you sell, you can use that equity toward the purchase of your next property. And at today’s record-level of appreciation, that equity may be enough to cover some (if not all) of your down payment.
Bottom Line
History shows rising mortgage rates have not had a negative impact on condo and home prices. Now is still a great time to sell thanks to ongoing price appreciation. When you’re ready to find out how much equity you have in your current property and what’s happening with home and condo prices in your local area, let’s connect at 734-761-3060 or info@condohotline.com.
Exposing the 4 Factors Agents Use to Price Your Condo Right
Key Takeaways:
- Before you list your condo, it’s crucial to understand how much a buyer would be willing to pay for it.
- Your agent will use a variety of factors to determine a competitive list price—and some of them might be a little unexpected.
- If you’re looking for a fast and accurate way to price your condo, we’re here to help. Contact us today for a complimentary estimate!
4 Surprising Factors That Go Into Pricing a Condo or Home
Pricing your condo to sell quickly—even in today’s hot real estate market—is all about balance. You want to price low enough to attract potential buyers, but high enough to profit from your equity. And while it may be tempting to use automatic estimators, it’s best to leave the number-crunching to your agent.
Need help determining the perfect price? Here are a few factors your agent will take into consideration when valuing your place.
Your condo’s size and condition
This may seem like a given, but a condo’s size, condition, and features play a huge role in how much it’s worth. Before you list, your agent will perform a walk-through to thoroughly evaluate its saleability. If your space is move-in ready and well-maintained, you’ll have more luck setting a higher asking price.
Many sellers are under the impression that big-ticket upgrades will drastically increase their home’s value, but this isn’t always the case. Before you make a significant change, ask your agent for their professional opinion. Believe it or not, smaller touches (like updating hardware or repainting) can have a better return on investment than a full-scale renovation.
Location
Real estate is all about location, and there are a few general factors that tend to boost property values. Typically, agents will price a condo or home based on local schools, nearby employment opportunities, and proximity to amenities. Houses in more desirable neighborhoods or communities also tend to command a higher list price.
Above all, most buyers are looking for condos that offer the perfect blend of privacy and convenience. Being close to (but not right next to!) highways or public transportation is another huge plus.
Other recently sold condos
One of the best indicators of your home’s value is the sale price of other listings in your complex or neighborhood. Your real estate agent should conduct a comparative market analysis—abbreviated as CMA—to see how your home stacks up against the competition. By looking at recently sold listings that are similar to yours, they can calculate a fair and accurate price.
After your agent has assessed your condo, they’ll likely send you a CMA report that contains their projected price, along with data from other comparable condos. A great agent will also be available to answer any questions, too!
Current market trends
Even if your condo is in perfect condition, in the best location, and boasts quite a few upgrades, the current state of the market can have a huge impact on its overall value. And in today’s seller-driven market, many homes and condos are now worth more than ever before.
In most areas we are seeing a large upswing in average sale prices. If you want to take advantage of these unbelievable conditions, now is the time to list—and we’d love to help!
Get Your Updated Home Value
Whether you’re just curious or are ready to sell, you can trust our team to calculate your condo’s true market value. Request a free valuation today, or reach out to us at 734-761-3060 or info@condohotline.com to learn more about 2021’s hot real estate market. There’s never been a better time to list!