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By Gary Kelley
Brad Avergon of Fairway Mortgage and I were speaking recently, and I made the comment, “There is no seasonality in real estate any longer. With inventory constraints it’s a constant.”
With apologies to Brad I overstated my point. Pre-covid there were much more pronounced peaks and valleys (see attached chart. I’m too cost conscious to print in color; suffice to say the dramatic movements were pre-2020. The near horizonal line was 2020, and everything below the line is post 2020.) There is still seasonality, just not as pronounced.
People just aren’t selling their homes at the same pace as before. I blame interest rates. During covid many refinanced into a very low rate and simply can’t bring themselves to sell losing that rate or buy at a much higher rate. They sit in their home and let it age around them.
If people need to get a larger/smaller home or desire a different school system they will make a move. They need to have a compelling reason to stay.
Many of the homes we are selling is the result of working with the heirs to sell their deceased relative’s home.
I need to stay in my home
If you need to stay in your home, you may want to explore ways to enhance it so it’s more to your liking.
Easy things are a coat of paint and or new flooring. This can generally be done for $ hundreds.
Updating a bathroom might be $20-30K, kitchen $45-60K. Of course, those are rough and tumble numbers. Adding an addition or raising the roof is in the $hundreds of thousands.
Paying for this is always a question. Paint and flooring is probably funded with cash or that raise. A bathroom/kitchen/addition may require financing and touching your equity. That’s where a loan officer like Brad Avergon can help with a home equity line of credit (HELOC), a cash out refinance, or a renovation loan. Don’t overextend … and at the same time if you are staying in your home enjoy it!
Need tools for home search: MoveWithGary.com
Gary is heard on WCRN AM 830 and “All Things Real Estate Podcast” on all the major podcast outlets.
If you need advice on selling your home or buying a new one, give us a call 508-733-6005.
