October Market Update & Newsletter

As we enter the last quarter of the year and with Fall and Halloween quickly approaching, here’s my question: is the real estate market going to experience a trick or a treat?  We are all hoping for a treat but as mortgage interest rates rise along with continued inflation, it sure seems like the broader economy might give us a trick.  As a result, buyers are in for a treat if they are in the market to buy a home.  There is less competition for houses today.  This allows buyers to negotiate with sellers to get lower prices, many of the contingencies they desire and even the occasional closing cost credit as we enter a more balanced market.  This is OK!  In the past, I’ve discussed that buyers should consider alternative financing options like Adjustable-Rate Mortgages and in certain limited circumstances 2-1 Buydowns to temporarily get a more reasonable rate.  This still stands.  As our friend Jared James says, marry the house and date the rate.  When the economy settles in, or if we enter a full-blown recession, we should see rates come down.  Buyers can then refinance to the lower rates, especially on 30-year fixed rates.  Now as a seller, it’s going to be more of a trick going forward.  Be prepared to settle in when selling your house, as the days on market are increasing.  Additionally, the house will have to be in top condition, staged, and most importantly, priced right.  Prices have moderated, and in most cases, we are not seeing higher prices on properties.  If you plan to sell, now is not the time to get greedy on the price, but the timing is good as there is less competition in the market.    Some homes still pop the first week-end, but that is usually when price, condition and marketing are strong.   There are still savvy buyers looking to purchase a home today, and the contracts will have contingencies in them.  That too is OK!  If you are a buyer, call me if you would like to know more about the financing options I discussed, and let me guide you through the home selling process we are encountering today if you are considering selling.  On another note, we are growing!  We recently purchased RE/MAX Regency out of Haymarket and Warrenton.  We’re consolidating our Gainesville and Haymarket offices into one, located at Regency’s Haymarket location in the Dominion Valley Country Club shopping center.  Please let me know if you would like to check out our state-of-the-art offices–I’d love to show you!

Happy Halloween!

It’s a good life.

Chris

 

RE/MAX NATIONAL HOUSING REPORT FOR AUGUST 2022

Read the full article on news.remax.com

According to August data in the RE/MAX National Housing Report, home sellers, on average, accepted offers below their listing prices last month – a further indication of rebalancing in the housing market. Across the report’s 51 metro areas, the average Close-to-List Price Ratio in August was 99%, meaning that homes sold for 1% less than the asking price. That’s down from 101% in July and 104% in April. This change helped push August sales 5.3% higher than July, while the Median Sales Price declined 2.4% to $410,000 after peaking at $426,000 three months earlier. At the same time, new listings dropped 12.8% from July and inventory declined 1.8% after four months of double-digit growth. Even so, the number of homes for sale was 20% higher than in August 2021.

Two-thirds of the way through 2022, home sales have declined every month compared to 2021. Other notable metrics include:

  • Months Supply of Inventory was 1.6 months in August, a decline from 1.7 in July but an increase compared to 1.2 in August 2021.
  • Days on Market averaged 28, four days higher than July and three days more than August 2021.
  • August’s Median Sales Price of $410,000 was 2.4% below July but was up 7% year over year.

New Listings

Of the 51 metro areas surveyed in August 2022, the number of newly listed homes was down 12.8% compared to July 2022 and down 13.1% compared to August 2021. Leading the way in increased year-over-year new listings percentage were Washington, DC at +13.2%, Raleigh, NC at +10.7%, and New Orleans, LA at +8.4%.

Closed Transactions

Of the 51 metro areas surveyed in August 2022, the overall number of home sales was up 5.3% compared to July 2022, and down 20.1% compared to August 2021. No metro area had an increase in year-over-year sales percentage.

Median Sales Price – Median of 51 metro area prices

In August 2022, the median of all 51 metro area sales prices was $410,000, down 2.4% compared to July 2022 and up 7.0% from August 2021. Two metro areas saw a year-over-year decrease in median sales price, San Francisco, CA at -4.2% and Honolulu, HI at -0.7%. Twenty metro areas increased year-over-year by double-digit percentages, led by Fayetteville, AR at +20.4%, Tampa, FL at +19.4%, and Orlando, FL at +17.5%.

Close-to-List Price Ratio – Average of 51 metro area prices

In August 2022, the average close-to-list price ratio of all 51 metro areas in the report was 99%, down from 101% compared to July 2022 and down from 102% compared to August 2021. The close-to-list price ratio is calculated by the average value of the sales price divided by the list price for each transaction. When the number is above 100%, the home closed for more than the list price. If it’s less than 100%, the home sold for less than the list price. The metro areas with the lowest close-to-list price ratio were Washington, DC at 84%, followed by a tie between Bozeman, MT and Coeur d’Alene, ID at 97%. The highest close-to-list price ratios were in Burlington, VT at 104%, followed by a tie between Hartford, CT and Manchester, NH at 103%.

Days on Market – Average of 51 metro areas

The average days on market for homes sold in August 2022 was 28, up four days from the average in July 2022, and up three days from the average in August 2021. The metro areas with the lowest days on market were Dover, DE at 10, Baltimore, MD at 11, followed by a two-way tie between Philadelphia, PA and Washington, DC at 13. The highest days on market averages were in Fayetteville, AR at 63, followed by a tie between New York, NY and Seattle, WA at 47. Days on market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Months’ Supply of Inventory – Average of 51 metro areas

The number of homes for sale in August 2022 was down 1.8% from July 2022 and up 20.0% from August 2021. Based on the rate of home sales in August 2022, the months’ supply of inventory decreased to 1.6 compared to 1.7 in July 2022, and increased compared to 1.2 in August 2021. In August 2022, the markets with the lowest months’ supply of inventory were a tie between Albuquerque, NM and Manchester, NH at 0.7, followed by another tie between Charlotte, NC and Hartford, CT at 0.8.

 

Recipe of the MonthPumpkin Whip

www.tasteofhome.com

Total Time: 20 min | Serves 6

INGREDIENTS

  • 1 package (3.4 ounces) instant butterscotch pudding mix
  • 1-1/2 cups cold 2% milk
  • 1 cup canned pumpkin
  • 1 teaspoon pumpkin pie spice
  • 1-1/2 cups whipped topping
  • Gingersnaps, optional

DIRECTIONS

  • In a large bowl, beat pudding and milk until well blended, 1-2 minutes.
  • Blend in pumpkin and pumpkin pie spice.
  • Fold in whipped topping.
  • Spoon into dessert dishes.
  • Chill.
  • Garnish with gingersnaps if desired

 

7 Popular Fall Decorating Trends of 2022, According to Designers

Jessica Bennett and Emily VanSchums | bhg.com

Grinning Jack-o-lanterns flanking the front door, plaid throw blankets draped across sofas, wreaths crafted from vibrant leaves: These classic fall decorating ideas are forever favorites. However, we’re always looking for unique ways to spruce up our homes for the season. This season, bold colors and cozy patterns are stealing the spotlight as people refresh their spaces ahead of the cold winter months.

To help refresh your home for the season ahead, we talked to a few designers about the fall decorating trends they’re most excited about this year.

Fall Porch-scapes

Designer Margarita Bravo predicts porch-scapes are going to be the hottest trend of the season. Elaborate fall front porches have been on the rise over the last few years, often decorated with pumpkins, corn stalks, mums, and other colorful seasonal props. But beyond the obvious curb appeal, Bravo says the front porch is an increasingly   popular place to entertain, especially in cool fall temperatures when friends and neighbors typically gather outdoors.

Earthy, Nature-Inspired Colors

Orange, red, and yellow are the conventional colors of fall, but designers are increasingly turning to other nature-inspired hues to   create refined fall color combinations. “I always gravitate toward warm, richer tones come the fall season, such as deep greens, blues, and browns,” says Kathy Kuo, CEO and founder of Kathy Kuo Home. If you prefer to decorate with the classic colors of pumpkins and fall leaves, experiment by mixing one or two unexpected shades into your palette to mix things up. Layer in a few pillows in a rich navy blue or line your dining room table with a forest green runner to set off the rest of your orange and yellow decor. You can also incorporate a bit of shine through metal decorative accents. “They are a great way to add contrast in a design while also providing a pop of color in a unique way,” Kuo says.

Entertaining-Ready Spaces

After seasonal celebrations were put on pause during the pandemic, gatherings are in full swing again—and fall is the perfect time to host friends or family. Interior designer Amanda Evans notes that post-pandemic, many of her clients are focused on preparing their homes for a season of entertaining. As you ready your home for hosting, she recommends incorporating elements that cater to all five senses,   including candles or essential oil diffusers. “The power of scent can bring coziness into a space without much decor at all,” Meichtry says.

Textural Fabrics

As the weather turns colder, warm, comforting fabrics are a must, and texture is a key trend for 2022. “Layering chunky knitted blankets and decorative pillows with velvets and other rich, textured fabrics will quickly transform your space from a light and airy summer feel to a warm and welcoming fall vibe,” says New York interior designer Courtney Sempliner.

Cozy Sanctuaries

The past few years have reinforced the notion that your home should be a sanctuary, and this idea will be at the forefront of fall decorating this year, Evans says. Outfit a window seat with cozy pillows and a plaid throw, or pull a comfy armchair into a corner to form a reading nook.

Dark, Moody Kitchens

White kitchens have had their moment, but this fall, it’s all about dark, moody colors, says Killy Scheer, owner of the Austin-based design firm Scheer & Co. “People have become more experimental and bold in their design choices in the last year or two and it’s exciting to see what that has parlayed into in their interiors,” she says. “Fall truly is a great time to usher in warm earth tones and deep jewel tones, reflecting the colors found in apple orchards, pumpkin patches, and all the warm cozy elements associated with the season.”

Bold Patterns That Add Personality

With more people working from home permanently, folks are looking for a way to brighten up the most-used spaces in their homes this fall. Gil Walsh of GW Interiors says the minimalist home is becoming a thing of the past. “People are using bold colors and fun patterns as a way to add life and positivity to their space and create an environment that exudes personality,” she says. “Colorful area rugs and boldly painted accent walls are good ways to experiment with bold colors and patterns without committing heavily to them. You can also stick to smaller rooms, such as powder baths, mudrooms, or even hallways, when you are just starting out with bright colors and patterns.”

 

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