INTEREST RATES ARE UP BUT SO IS DEMAND FOR YOUR HOME!
Great school districts, convenience to major metropolitan areas for employment and culture, balanced with local parks and nature are all reasons buyers are still seeking to buy homes in our market area.
As I write this, mortgage interest rates have risen to almost 8%, and the Fed is forecasting ‘one more rate increase’ In spite of this, sale prices have continued to increase and homes are selling in a brief period of time.
Here is a summary of 2023 property sales in our area, comparing first, second, and third quarter year-to-date, home sales:
In the first quarter, 240 homes sold, for an average sale price of $713,000, that’s 99% of the asking price, after an average of 43 days on the market
In the second quarter 313 homes sold, for an average sale price of $830,000, which is 102% of the asking price, after an average of 26 days on the market
In the third quarter and year-to-date, 394 homes have sold for an average price of $883,000, or 103% of the asking price, after an average of 29 days on the market
So, while home sale prices and mortgage interest rates have increased, buyer demand for housing is still greater than the supply of homes for sale in our area. This demand has made it easier to sell homes in locations that would not have been considered desirable a few years ago, such as homes on busy streets, near railroad tracks, or wetlands.
As prices have increased, buyers are focusing on more ‘must have’ features. The features listed below will offer home sellers the greatest return on investment (ROI):
Garage door replacement 103% ROI
Entry door replacement 101% ROI
Exterior vinyl siding 95% ROI
Stone veneer 102% ROI
Vinyl window replacement 69% ROI
Minor kitchen remodel 86% ROI
Of course, there are many low-cost home improvements that yield a great return. The best least cost improvement you can make to prepare your home for sale is fresh paint. In fact, home interiors are shifting away from monochromatic grays towards warmer neutrals and brighter shades of color. Simply removing curtains and trimming hedges close to the windows will increase natural light into the home. These simple changes can make the home interior appear more spacious. Removing ottomans and coffee tables, replacing table lamps with floor lamps can increase the openness of any floor plan.
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