REAL ESTATE
TRENDS TO WATCH By Andrew Manning I'm not a big fan of jumping on bandwagons (unless that wagon happens to be luxuriously wrapped in velvet and ambles along the Southern California coastline during a beautiful wintry sunset) but for now, let’s jump. There are a few topics everyone’s been talking about lately (interest rates, home prices) and these can’t-get-away-from-them industry conversations are indicative of some trends we can expect to see in real estate this year. First, pristine listings are in. No longer can sellers kick problems or cluttered rooms down the proverbial road because properties today are in such high demand. It's true you can do that when the market is fast-moving, but in a more balanced environment, buyers pay a lot more attention to the details of your home. Another trend is that contingencies are officially back. In 2021 and for the first half of 2022, buyers were waiving appraisal contingencies and inspections like they were walking in real estate’s version of the Macy’s Thanksgiving Day Parade.
Relatedly, analysts predict rates will most likely drop by the middle of 2023 to about 5 or 6% as part of a housing price regulation and deceleration as real estate moves to a more normal market. And the final trend? In today’s real estate landscape, houses can't be put on the market (in all price ranges) with bad cell phone pictures. Photography and a listing’s overall online presentation is more important than ever. Completing those small fix-ups in a house, like repairing a crack in a wall or replacing the kitchen drawer knobs, could make the difference between “for sale” and “sold.” /AM
In reality, having no contingencies or limited contingencies was abnormal and now, we’re returning to more normal circumstances where buyers are saying to themselves, “Wait a minute. This isn’t a multiple offer situation. I’m the only offer here. Why should I waive any contingencies? On the subject of interest rates, we’re seeing the 2-1 buydown program happening everywhere. It’s helping to ease people into higher rates. If a seller buys the rate down for the first two years, buyers rightly believe by year three they can refinance at a better rate.
ANDREW MANNING | REALTOR® BERKSHIRE HATHAWAY HOMESERVICES CALIFORNIA PROPERTIES DRE LIC. #00941825 (818) 380-2147
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