Data Driven Real Estate Insights
Summer is heating up, but is the market cooling down?
Summer is heating up, but is the market cooling down?
Inflation is running rampant across the states. With the rising costs of transportation and rising mortgage rates, buyers are struggling to come up with the funds needed for a down payment on a home. Buyers are having to ask themselves if they should wait for the market to shift, or buy now while the rates are still relatively low. It’s a constant struggle for buyers and sellers to time their transactions right.
Here we’ll dive into the market to determine where it is now, where it will be, and when the right time is for your clients to buy or sell a home.
What are the most popular months to buy and sell a home?
Summer is usually the hot season for real estate professionals. According to the National Association of Realtors, the months of April to August are the most popular months for buying and selling, reaching peak season during the summer months. However, home prices have been consistently escalating and this summer has seen a huge slowdown for buyers because of this. Inventory is still low and the rates are expected to rise all the way up to 2024. Serious buyers need to know that because of these factors, now is the time to start looking. Buying now while rates are still relatively low is the best option and the rising rates are weeding out casual home shoppers, leaving more room in the market for serious shoppers.
Home Prices are Slowing Down With Inventory Increasing
On an optimistic note, we can look forward to a slower rise in pricing than we’ve been seeing in the last few months. This, partnered with a slightly larger inventory while the market starts to balance out, means that the market for buyers right now is better than it has been in a few years.
We can continue to see a lot of competition in the market, especially among investors looking to offer cash or buy quickly. The real estate market is moving fast and listings are often being sold as-is to avoid renovation costs. Wholesalers and investors can cash in on this market if they’re willing to put in the time and renovation expenses.
Rental Rates and Interest Rates are Increasing
MPA magazine reported in May that rental rates are going up four times as fast as the average income and combined with inflation, renters will be looking to own a home so they can invest in their own property and keep fixed rates.
If buyers want to keep rates and prices low, they’d better hurry and start shopping now. According to Forbes, experts are predicting that rates will rise to a whopping 7% on average by the end of 2022 from the current 5%. If buyers want to avoid skyrocketing rates and even higher prices, this summer is still the best time.
These trends are a sign that clients should also be looking to list their homes right away instead of hoping for prices to rise if they want to sell fast. Waiting until the end of 2022 means looking towards a very slow market. Mortgage rates will be higher than they’ve been since 2008 and we can expect to see a big increase in the average time homes sit in the MLS.
Now is the Time to List Your Clients’ Homes!
Sellers in smaller rural cities should also look to list right away before more people start heading back to work. Following COVID, the workforce is still primarily running their businesses from their own homes. A blog post from NerdWallet lists “more spacious and affordable choices for first-time home buyers” as some of the many reasons why people are relocating out of urban communities. With rising home costs and rental prices in the city, buyers will be looking to move from costly large cities to smaller towns where inflation hasn’t hit as hard and the costs of commuting aren’t as much of a factor when it comes to budgeting.
Condo and townhouse owners can be confident that their properties will sell quickly. It’s not just baby boomers looking to downsize, but city dwellers who are used to apartment living. These demographics will find comfort in complex living for a lower cost than owning a single-property home. Shared housing offers the affordability as well as the comfort of a fixed mortgage rate, without the many unpredictable factors that renting brings.
This Hot Market is Cooling Down Fast
Your clients shouldn’t wait to make their move and join the market. The end of the year is looking to be highly costly for both buyers and sellers. To avoid high-interest rates and a long time sitting with their listing on the market, right now, it’s the quicker the better. We’re still in a hot market, but it’s cooling down fast.
Key Factors That Make for a Great Home Office
Key Factors That Make for a
Great Home Office
There’s no question that workforce dynamics have drastically changed in recent years. Remote work has steadily been on the rise, and the COVID-19 pandemic has accelerated it even more in 2020. Entrepreneurs are realizing the benefits of working from home, not the least of which are lower overhead costs, no commute, and greater overall agility.
That said, running a home-based business is, in many respects, similar to running one in a traditional office or store setting. It’s still challenging, and you still need a healthy combination of knowledge, skills, and luck. However, you also need a proper workspace that will promote productivity day in and day out. Below, we’ll discuss some of the most essential factors involved in creating a home office or workspace that meets all of your business needs.
The Space
If you don’t have the space in your home to fit a home office that meets your needs, your first step will be to look for a home that will. Although buying a home requires a significant investment of time, energy, and money, it’s worth it if it means that it will help your business succeed in the long run. Plus, when you work with a real estate expert like Angela Judge, it doesn’t have to be an overwhelming process. She can walk you through loan pre-qualification, help you find the perfect home, and guide you through every other step of the process.
One thing to prepare for when buying a home right now is the change in guidelines and protocols for COVID-19. While you may be able to tour homes in person, expect to rely on virtual open houses, 3D walkthroughs, and video-chat tours. Once you have the right home for your business, it’s time to choose the location for your office. Put your workspace somewhere that helps you to keep your work and home life separate, provides enough room to store items and work comfortably, and allows you to have access to natural light.
The Desk
So, you have the right home and space for your office. Now, it’s time to outfit the space, starting with your desk. Make sure your desk has enough surface area to house any equipment, lamps, and other items you need in reach while also providing room to write and perform other work tasks. And ensure that your desk is the right height; the industry standard is 29-inches-high, but your needs may vary if you are taller or shorter than the average person.
The Chair
The chair you choose for your workspace is also a big deal. Not just any chair will do, especially if you plan on working longer than two hours a day. Invest in a quality ergonomic chair with lumbar support, height adjustment, and wheels.
The Internet
If you are running a home-based business, it most likely means that much of your work will be dependent on your Internet service. You don’t want your Internet speed to be less than 50 Mbps, and if other people in your household will be using the Internet at the same time as you are working, then you will probably need to go with a faster speed. Moreover, Wi-Fi should suffice if you mainly do basic office work, but you might consider installing an Ethernet connection if you plan on doing tasks that require a lot of bandwidth (like video).
There are many benefits to running a business out of your home. But to reach long-term success, you must have a workspace that accommodates your business needs. As you plan your home office or workspace, be sure to thoughtfully consider the home and space themselves, as well as your desk, chair, and Internet service and connection. While there are other factors that play a role in creating the perfect home workspace, taking care of these will help you lay a solid foundation to build upon.
If you need help buying or selling a home, contact real estate expert Angela Judge today! (604) 787-8780
Location
1438 Howe Street
Vancouver, BC V6Z 1R8
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.