When Will Home Prices Come Down?

Cynthia Chavoustie

This is a question we get asked all the time and understandably so.

Those wanting to buy a home wonder if houses will become more affordable soon.

Those thinking about selling wonder when is the best time to sell.

While some analysts predict home prices will become more moderate through 2022, it hasn’t happened so far.

Many thought a rapid slowdown in price appreciation would occur by the end of 2021 and the beginning of this year but as the data shows, that isn’t the case. Prices instead accelerated in December and are still going strong.

To be clear, Acceleration means prices increase at a greater year-over-year rate than the prior month. Deceleration means home prices will continue to rise but at a slower speed than year-over-year appreciation. Depreciation indicates home prices drop below current values but that’s in nobody’s forecast!

S&P’s Case Shiller showed appreciation accelerated in 15 of the 20 metro areas they report on and the Federal Housing Finance Agency (FHFA) revealed that price appreciation accelerated in December in six of the nine regions it tracks.

What Does All This Mean?

If you’re a first-time homebuyer or someone looking to sell a house and buy a home that better fits your needs, waiting could cost you in two ways:

Mortgage rates are predicted to increase this year.
Prices for homes will appreciate at double-digit levels for the foreseeable future.

Likely for this year and possibly for next, the more time goes by, the more mortgage rates will increase and home prices will continue to go up, possibly making it more difficult for you to afford a home if you’re buying.

If you’re selling, there may be less buyers for your home as affordability decreases with the increase in mortgage rates.

“If you’re thinking about waiting until next year and that maybe rates are higher, but you’ll get a deal on prices – well that’s risky. It may be more advantageous to purchase this year relative to waiting until 2023 at this time.” ~ Deputy Chief Economist at Freddie Mac, Len Kiefe

Whether you’re buying, selling or both, talk to one of our experienced and knowledgeable agents. We’re here to help discuss your options and figure out what will be best for your situation.

Call, Text or Email Us Anytime!

5 TIPS TO GET YOUR HOME OFFER ACCEPTED

by Cynthia Chavoustie

Buying a home is an exciting experience, but it easily makes the list as one of the more stressful life events we go through as adults. We’re here to help reduce that stress.

If you are looking to buy in the Denver Metro area, you have probably already realised that it’s a hot, hot market for sellers and buyers are not having an easy run at it. It can be discouraging and disheartening, likened much to the dating game – ugh, my stomach just turned, did yours? BUT, hold on, don’t get dismayed.

Here are a few tips on how to get your offer accepted during this seller’s market.

In this blog post, we’ll discuss 5 strategies that will help your offer stand out from others and increase your chances of getting accepted.

1. GET PRE-APPROVED for a loan

Unless you can offer cash (see tip #2), get pre-approved for a loan and provide proof with your offer. Pre-approval isn’t a full commitment loaning entity but it does show that a bank or mortgage company has preliminarily reviewed your credit and believes you will qualify for a loan up to a certain amount. If you cannot get pre-approved at this time, I’m sorry to say but you will not be even considered in today’s market here – if this is the case, take time to focus on your credit, you can get there and your time will come.

2. OFFER CASH if you have it.

Nothing gets those home sellers hearts a-skipping like a cash offer with proof of funds. If anything can make you jump to the head of the line, a cash offer will. Think you have it? Start organizing your funds and have your bank provide you with a statement of funds as proof.

3. OFFER MORE EARNEST MONEY

1%–2% of the asking price is the typical amount offered in earnest money. However, if you want to show the sellers that you are serious, you can offer more earnest money because remember, earnest money is potentially at risk if the deal falls through. So if your offer is accepted, you need to be confident in your ability to uphold your end of the process (financing primarily). We can also work with you to make sure you have contingencies in place to cover you in case you decide to back out later so you don’t lose all of your money.

4. BE PREPARED TO GO ABOVE ASKING

Sometimes well above asking price. $25-30K above asking is not uncommon but of course depends on the specific price range you’re looking, etc… be sure to ask your realtor about what homes in your price range and area sold for compared to what they were listed for.

5. HAVE A GOOD AGENT IN YOUR CORNER

A well networked agent who communicates well with the listing agent can make or break the deal. Good communication skills of a realtor can help you find out the motives of the seller which in turn can help you tailor your offer to better suit their needs or desires. For example, if the seller hasn’t a home to buy yet, allowing them to stay in the home for 30 or 60 days after closing may make your offer stand out.

What to do if your offer is not accepted?

DO NOT GIVE UP.

While home prices are at record highs, internet rates are still relatively low.

Other things to keep in mind:

Keep Emotions in Check

Trust us, we know how easy it is to get excited about a house you can see yourself and your family in but until those keys are in your hands on closing day, you have to see it as just a house not a home yet. Don’t get too attached too soon, you’re just asking for a rollercoaster ride of emotions and you’re likely to give up or end up rushing into something you would have otherwise.

Keep Looking

Stay focused and remember the task at hand. If you need a home, you need to keep your head in the game and keep an eye out for other potential homes. You may still be dreaming about “the one that got away” but you’d be surprised at how many other options are out there.

Keep an Open Mind

Consider other areas to buy your new home. If you limit your search area to only one part of town you are likely missing out on great neighborhoods that you have never discovered. There may be amazing neighborhoods that check off many, if not, all of your boxes that you are unaware of. Many buyers end up very happy in neighborhoods they never knew existed. Check out our list of communities to learn more about neighborhoods in the Denver Metro area.

If you are looking to buy or sell a home, The C. Taylor Group is here for you. Our team believes in providing all our clients with luxury service and will advocate on your behalf.

If you are buying a home, we will help you with all aspects of purchasing and making sure it’s not just a smooth process, but a pleasurable one as well.

If you are selling your home, we will do everything possible to help get it sold for the price and terms that fit your desires.

We are here to help you with all your real estate needs.