Suburban RE nov 2022

I recently spent a few days in Atlanta with thousands of COMPASS agents all around the country, learning about their markets. In almost all the markets, the agents agreed that we are in the midst of a massive market rebalancing. This re-balancing market has left some sellers in areas angry that they missed the peak of the selling frenzy when mortgage interest rates were half of where they are right now. Some sellers have not acknowledged the change in market and are pricing their homes to comps of early 2022. Those homes are just acquiring days on market; simply put, 
if the price isn’t compelling, it isn’t selling.

If/when the recession arrives, and inflation shows real signs of notable cooling, I'd expect interest rates to be slashed to fuel growth again. Will they go down as far as they were in 2020-2021, that's very unlikely. It is highly possible they will be lowered to more manageable levels, which are sufficiently comfortable for a large swath of home buyers to re-enter markets. Those who act prior to that date when rates go down and lock in now and refi later could get a great price on a home with less competition because once the rates decrease pent-up demand will be unleashed again.

Would you sell your home today if your mortgage was below 3%?  Around 90% of mortgage holders have a mortgage interest rate below 5%, and two-thirds have mortgages below 4%. Most will not sell to borrow at 6.3% for a new home unless the asking price compensates for the increased monthly payment.  Sellers who are listing their properties in the next several months are serious and want to sell. Interest rates are rising but renting is 100% interest. Don’t forget, everyone needs somewhere to live.

A home that cost $1 million in a 3% mortgage rates environment may have to reduce its price by 10-30% to meet the ability of buyers to buy that house now at a 6 or 7% mortgage rate. The balancing act will factor in the higher mortgage rate and whether that buyer is earning more and how much more the rental alternative costs today.

BUT

The smart buyers will make a move now. Now is the time to act. When others are scared, remember to act smart and seize the opportunity - where competition is lower.
Don’t forget, you date the rate but marry the price”.

Simple Interiors are Usually best, staging works
When marketing homes, we are selling the future, not the past. Yes, some ultra-personalized interiors do indeed translate well, but often even the best ones distract a large portion of the potential audience. That is not in the best interests of the seller.   Images displaying the difference between a highly personalized interior and a more generic staged one often speak more than any words will.

Comfy Glamor
Might COMFY GLAMOR be the big interior design trend of 2023? Designer Miles Redd seems to think so. Homeowners still love a glamorous interior, but they are equally focused on comfort. 'I think glamor can be alluring but also intimidating, and we must strive to make it as inviting as possible. I suppose that is what I mean by comfy glamor." - Miles Redd

Ordinary green leaved trees of summer have exploded into  colors from radiant yellows to deep reds, and soon these leaves will fall to the ground and bare branches will be exposed. Seasons are not unlike markets: their declines are almost always followed by recoveries and renaissance. Some winters can be more severe than others, but Spring and Fall always arrive with certainty. All cycles are simply nature at work, a mix of certainty and sometimes a few surprises along the way. Almost everything around the globe is currently recalibrating, and although we can become impatient, we need to recalibrate our expectations on the speed these things take. 
BIG changes and re-balancing take time.