Home sale prices rose sharply in December climbing to a median price of $402,000 and an average price of $605,784. Median prices rose 27.6% versus December 2020 while average prices rose 32.9% The number of homes closed dropped 13.2% from December 2020 primarily because there is less inventory.
Cash sales accounted for 37% of all single-family home sales in December. We did see a 3.5% rise in new listings in December, so some homeowners have decided to sell while the getting is good. There were only 5 foreclosure home sales in the county and only 1 short sale. For those so-called experts that were predicting distressed sales hitting the market in 2021, they were sadly mistaken.
Sellers Wondering When Market Will Top
Many homeowners are concerned about rising interest rates, as they should be. Traditionally rising rates limits home sale prices. While many financial gurus have predicted 5-6 Fed rates hikes in 2022, we are not so sure. Many experts believe the Fed will have a difficult time raising rates as drastically amidst a rapidly falling stock market. While we have seen stock market volatility, it remains to be seen how the market will fare throughout 2022.
The stock market, and the real estate market’s future may be tied to inflation and what the Fed must do to get it under control. Taming inflation through the Fed is the toughest way to go and takes the longest. Typically, there is a lag between rising rates and slowing down the economy to fight inflation.
The president has so many other tools he could use than just using the Fed, but we doubt he will go that route so here we are. Today the 10-year note stands at 1.784. Keep your eye on that number. Some believe it could go to 2.5 or even 3. Thirty-year mortgages are pegged to this number, so the higher it goes, the higher mortgage rates will be.
Marketing Muscle Leads to Multiple Offers
Last weekend we sold 3 properties. Both homes sold over asking price. We attracted buyers both locally and targeted buyers in high tax states. Many open house attendees were from those high tax states we advertised in.
We plan to do a future article on how to properly evaluate multiple offers and how to negotiate them. Most people believe it is as easy as picking the highest price. Agents are getting very creative in writing their contracts. Financed offers are disguised as cash in hopes of winning the bid. It takes a savvy agent with experience to sort out true facts of the buyer which are critical in selecting the best offer. It does no good to select the highest offer only to find out buyer is getting financing and does not have money to cover an appraisal deficiency.
Some agents are writing ridiculous offers only to win the bid and knock the price down later when they can’t perform. If they can catch the seller days or weeks down the road, perhaps they will be in a position where they must take less. While this tactic is less than honest, it pays to verify facts before accepting an offer.
Strong Listing Agents
Real estate agents can be very pushy trying to get their buyer’s offer accepted. You need a strong listing agent to stand up for you. One that knows the local customs and has relationships with local agents. Nobody is going to push our sellers around. An inexperienced agent with less confidence might buckle when the other agent is demanding answers on their time frame instead of yours or demanding to know how high they must go to win. They know this is unethical and yet we saw it happen many times this past weekend.
Rest assured, when you list with the Ellis Team at Keller Williams Realty, you are in good hands. We are not saying all agents operate this way, but a few hungry agents desperate to get a deal did this past weekend.
Please call Brett or Sande Ellis 239-310-6500 or visit www.SWFLhomevalues.com for an instant home value of your home.
Good luck and Happy Selling!