We’ve heard the news too. “The market is crashing,” “interest rates are soaring,” and “homes aren’t selling.” The Loken Group is happy to report, this is NOT true. We are still selling homes faster than the average Houston agent and for more money. Let’s dig deep into some of the most common home selling myths to help understand the market and sell your home!
MYTH: It’s a buyer’s market.
FACT: This is still a strong seller’s market. It may feel like the tables have turned on sellers, but the scales are still tipped in favor of selling. Buyers are beginning to understand the low COVID interest rates were not the norm, and they still need houses. Houston and Texas economies are strong and cost of living is still a value.
MYTH: Home prices are crashing.
FACT: Home prices are on the rise. While there was a small dip in home prices at the end of 2022, data shows that home prices are continuing to increase. According to HAR in the Greater Houston area, the average single-family home price in January 2023 was $381,983, and by September 2023, the average price increased to $416,664, a 9% increase! Historically, unlike vehicles or credit card purchases that depreciate over time, homes appreciate over time making them a solid investment.
MYTH: Interest rates are too high.
FACT: Interest rates are back to normal. The average interest rate in the United States over the last 30 years has been approximately 7.75%. Right now, the market is holding steady around this number. Rates fluctuate on a regular basis. Once you are locked in to a fixed-rate, you can always refinance once rates reduce, providing you with stability and predictable payments over the life of the loan. Remember, just in 2021, home buyers were spending thousands of dollars above list price and out-of-pocket in order to purchase homes.
MYTH: I don’t need to repaint or stage my home. It’s a waste of my time and money.
FACT: Little things go a long way. Buyers feel they have more leverage as home inventory and days on market rise. Don’t give them an easy excuse to pass on your property or bring a lowball offer because of a lack of cosmetic updates. In the long run, repainting, staging, power washing, and a little TLC can make a massive difference. Buyers feel more at home when the property is welcoming and updated. When they feel at home, they also tend to write more offers, typically helping sell your property faster and for more money.
MYTH: If I price my home higher, I’ll get more money.
FACT: The correct list price is important. Now is not the time for the “record setter.” Price your home appropriately to the comparables. Good homes priced right are still selling fast. An overpriced home will sit on the market longer, costing you extra months of utilities. The longer it sits, the less exposure your home has to the market.
As always, make sure you have an expert in the real estate market guiding you through your home selling journey. If you are concerned about selling your home or just want to have a conversation about the current market conditions, please reach out!