Happy New Year! Our Homes of Silicon Valley team sincerely hopes that your 2022 is off to a great start! We are excited about the opportunities and more importantly, the meaningful connections, that will emerge in the next 12 months. While cautiously optimistic, we are also mindful of the realities of having to make such large home and financial decisions amidst an ongoing global pandemic. First and foremost, we wish you health and comfort. Amidst the challenges, we are committed to helping you thrive and achieve the lifestyle that fits what you need and want in 2022.
While there is no crystal ball, there have been some market predictions made that may impact your own buying & selling goals. Realtor.com Chief Economist Danielle Hale has projected: “We expect a whirlwind 2022 for the housing market. Home sales are expected to increase another 6.6% and home prices to rise another 2.9% on top of 2021 highs.” She also asserts that demand among the 45 million millennials aged 26-45 will keep the market competitive, even with gradual rate increases occurring. Workplace flexibility is expected to support buyers in widening their locale parameters, and anticipated rent increases of 7.1% nationwide will further motivate home purchases.
Given this information, we wanted to present a few myths and realities with regards to selling in the spring. Here goes…
Myth: Most people want to move in spring and summer, so I should just wait to consider listing my home until April or May.
Fact: The ‘spring’ market actually starts after the Super Bowl! The past few years have seen incredible demand year-round, with market momentum starting in February and often continuing through October. Serious buyers are always looking, so sellers may get the best offers (though not the most) in what is traditionally considered an ‘off’ season.
Myth: If I want to achieve max ROI, I should wait until home prices increase even more.
Fact: Home price increases are relative, if the home you are selling and the one you are buying are both increasing in value, waiting does not always make ‘cents.’ Maximum ROI is the result of a number of factors including but not limited to: current market climate, the condition of your home and the strategy/timing implemented by your local & vetted agent.
Myth: I should hurry up and sell before home prices crash.
Fact: While we would love to help you sell your home, we only want to support your transition if you are ready! Home prices are not expected to drop but to ‘decelerate’, which means increase at a slower pace. We believe this is a critical piece of market moderation. Our complimentary consultations take your goals and market conditions into consideration, and we will only prepare a strategic plan that is beneficial to your and your timeline, not one that is driven by fear.
If you would like to chat more about the housing market in 2022, receive a complimentary home valuation or just say hello – please reach out at anytime!
Mark
408.290.0072