As of this writing, mortgage interest rates have climbed to 7.25% for conventional and adjustable-rate loans . The 2025 forecast is that mortgage rates will remain in 6%-6.3% range this year. These higher rates will impact people with lower-rate mortgages on their current homes who would like to sell and either trade up to a larger home or empty nesters who may want to downsize. A recent survey by Redfin found that one third of homeowners surveyed said that they will not be selling their current homes. 27% of those surveyed said they would not sell for 10 years.
While this is not good news for buyers, its great news for those who want to sell their homes now^ This limited inventory of homes for sale, the lowest in two years, means that prices will remain higher, as buyer demand in our area continues to exceed the supply of homes for sale.
While it is still a seller’s market, today’s buyers are clear in what they want in a home. A recent profile of buyers revealed that 42% seek home that are ‘turnkey’ and don’t require renovation. Most popular features in priority order
- Kitchen Center Island
- Separate Laundry Room
- Hardwood Flooring
- HVAC recent, multi-zone system
- Energy Star rated windows
While these items are substantial investments, there are also low-cost features that buyers currently seek
- Warm interior colors such as earthtones
- Cozy décors such as pillows, cushions, upholstered seating, curved furniture, plush area rugs
- Natural accents such as indoor house plants, natural wood tone accent furniture
- Drought tolerant low maintenance landscaping and property drainage systems
In addition, the simple staging of your home’s interior can go a long way to attract buyers. There has been a debate over the last couple of years regarding the popularity of the open floor plan. Approximately 50% of agents survey think buyers now prefer traditional, enclosed rooms while many interior decorators and agents believe the open floor plan is here to stay. However, the open floor plan still offers great flexibility for home offices, entertainment space, and family gatherings. However, it can be softened to satisfy buyers’ current desire for coziness. Using simple room dividers such as console tables, area rugs, occasional chairs and love seats will create smaller spaces for occupants to enjoy.
Today’s, home buyers often seek the instant gratification of a home in turnkey condition, thanks to reality TV shows and social media. Unfortunately, with higher mortgage rates and inflation, most buyers cannot usually afford new or completely renovated homes. The role of today’s real estate agent is to educate buyers about the true value when buying a home as a long-term investment. The value must include the location of the home, property tax trends, local school information, and proximity to transportation. It is the job of the REALTOR to help buyers evaluate these factors, as well as the special features that each home has to offer.
For additional information please contact:
Diane Belcuore
Realtor ®
908-872-5473
dianebelcuore@optonline.net
NJ 5 STAR AWARD Winner 2014, 2015, 2016, 2017, 2018,2019,2020,2021
Accredited Staging Professional
