Moderation in mortgage rates led to a pickup in demand for residential real estate, but limited inventories across the country hindered actual home sales, the Federal Reserve reported in its Beige Book survey of regional business contacts that was published Wednesday.
Several Fed districts reported that a dearth of for-sale inventory contributed to faster home price growth since January. The spring homebuying season, which got underway a bit earlier than usual, was off to a good start in districts like New York and Dallas.
“Should mortgage rates fall, demand for residential real estate would increase, encouraging buyers who had been waiting on the sideline to move forward with home purchases,” according to the Beige Book.
The outlook for future economic growth remained generally positive as economists, market experts and business organization leaders interviewed for the report noted expectations for stronger demand and less restrictive financial conditions over the next six to 12 months.
The Beige Book, which was compiled by the Federal Reserve Bank of San Francisco using information gathered on or before Feb. 26, does not reflect the most recent rise in mortgage rates, which have surpassed 7% on HousingWire’s Mortgage Rates Center.
The Beige Book is published two weeks before each meeting of the policy-setting Federal Open Market Committee. The FOMC is expected to leave its benchmark interest rate unchanged when policymakers gather on March 19-20. The benchmark rate was last changed in July 2023, when it was raised to a range of 5.25% to 5.5%.
Federal Reserve Chair Jerome Powell reiterated Wednesday that policymakers still need to gain “greater confidence” that the battle against inflation is conquered before cutting interest rates.
“We believe that our policy rate is likely at its peak for this tightening cycle,” Powell said during testimony before the House Financial Services Committee. “If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year.”
Following are excerpts of statements on housing conditions from the Federal Reserve districts, drawn from the newly released Beige Book.
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Boston: Residential Realtors expressed growing optimism as both property listings and pending home sales increased. Contacts cited modest declines in mortgage rates since last fall as a likely reason for buyers’ increased willingness to enter the market.
Although inventory levels remained low, listings increased by modest to significant margins around the First District in recent months, lending increased optimism for sales moving forward. Still, contacts emphasized that the number of units for sale stayed far short of what they considered a balanced market, and that a dearth of inventories had contributed to faster house price growth from 2022 to 2023.
New York: Housing markets strengthened as the spring selling season got underway a bit earlier than normal. While inventory generally remained exceptionally low, inventory in New York City has begun to normalize. Many buyers who were waiting for a reprieve in mortgage rates have started to return with the intention of refinancing later. Though mortgage rate lock-in continues to limit new listings, particularly in the New York City suburbs, listings have increased in upstate New York as people have continued to leave the area for warmer climates.
Still, with such limited inventory, home prices have continued to press higher. Bidding wars were prevalent in the New York City suburbs but have been more limited in upstate New York.
Philadelphia: The inventory of for-sale properties remained extremely low as it has since the pandemic began. But real estate agents noted that higher interest rates have severely limited new listings over the past year and were responsible for the significantly lower level of closings.
New-home builders continued to report steady sales at relatively strong levels, in part because of the lack of existing for-sale homes. Most expect their pipeline of contracts to keep construction busy through the year.
Cleveland: Residential construction contacts reported that demand increased as mortgage rates declined. But real estate agents indicated existing-home sales changed little because inventory remained low.
Looking ahead, homebuilders and real estate contacts anticipated that demand would increase should mortgage rates fall, encouraging some “customers [who had been] waiting on the sideline” to move forward with home purchases.
Richmond: Respondents noted an increase in listings and buyer activity, but the elevated mortgage rate made buyers more tentative on making home purchase decisions. Sales prices have flattened, but there were still multiple offers on many homes.
Days on market increased slightly but remained below historic averages. The home construction market was constrained as it was difficult to find land and to receive permitting for new developments. Residential construction costs started to moderate this period.
Atlanta: As mortgage rates retreated from cyclical highs, homeownership affordability improved throughout the district. But home sales in most major markets ended the year well below seasonal norms and remained significantly behind pre-pandemic levels. Potential buyers locked into historically low mortgage rates remained reluctant to move, and migration into the district moderated through 2023, resulting in diminished housing demand.
Existing-home inventory levels were also suppressed by the “lock-in effect,” resulting in flat to moderate price growth in many markets. Demand for newly constructed homes was boosted by the lack of existing homes and builders.
Chicago: Residential real estate activity was down moderately, although prices were steady overall. High interest rates and a low supply of existing homes for sale continued to hold back activity.
St. Louis: Residential real estate sales have slowed since our previous report. Contacts in Arkansas and Tennessee reported that the low end of the market continues to be strong, while contacts in Missouri and Southern Indiana reported higher-end homes selling better. Rental rates for residential real estate have remained unchanged since our previous report.
Minneapolis: Single-family development remained soft, with modest but spotty increases in some district markets compared with a year earlier. A Minnesota contact said that “consumers quite abruptly stopped spending discretionary income on larger home improvements.”
Dallas: Home sales rose during the reporting period, and contacts noted that the spring selling season was generally off to a good start. Cancellation rates were down, buyer incentives were less prevalent, and builders said they were raising prices slightly in some markets.
Outlooks were positive, although contacts cited economic and political uncertainty, diminished affordability and tight lending.
San Francisco: Real estate activity rose slightly overall. Residential construction strengthened. Demand for single-family homes picked up slightly, as mortgage rates, though still elevated, moderated a bit in recent weeks. To attract reluctant homebuyers, some homebuilders began offering variable-rate mortgages at below-market interest rates, which revert to market pricing after a year, at which point buyers are reportedly expecting rates to be lower.
Tucson is a scenic desert city that has a unique blend of natural beauty and new-age convenience. With its stunning sunsets, majestic saguaro cacti, and a thriving arts scene, Tucson is a place where you can truly immerse yourself in the beauty of the Southwest.
From exploring the historic downtown to hiking the surrounding mountains, Tucson has something for everyone.
Whether you’re searching for apartments in Tucson, homes for sale, or want to learn more about what Tucson is known for, this article is the guide you’ve been waiting for.
1. Saguaro National Park
Saguaro National Park showcases the iconic Saguaro cactus, symbolizing the American Southwest. The park is divided into two sections, East (Rincon Mountain District) and West (Tucson Mountain District), offering breathtaking desert landscapes, hiking trails, and more.
2. Fourth Avenue
Fourth Avenue in Tucson, the social heart of Tucson, is known for its eclectic mix of shops, restaurants, and bars. This thoroughfare hosts several street fairs and events throughout the year, drawing locals and tourists alike on a daily basis. Needless to say, no trip to Tucson is complete without a stroll down Fourth.
3. Stunning desert landscapes
Situated in the Sonoran Desert, Tucson boasts breathtaking natural beauty. The city is surrounded by majestic mountains, picturesque canyons, and unique desert flora and fauna. Visitors and residents alike can easily explore the beauty of the desert at a moment’s notice, making Tucson the ideal home for outdoor enthusiasts.
4. Steward Observatory
Steward Observatory, part of the University of Arizona, is a leading center for astronomical research and education. With its state-of-the-art telescopes and facilities, including access to the Large Binocular Telescope, it offers incredible opportunities for discovering the mysteries of the universe.
5. Tucson Gem and Mineral Show
The Tucson Gem and Mineral Show is the largest event of its kind in the world, attracting vendors, collectors, and visitors globally. Held annually in Tucson, it showcases an astonishing variety of gems, minerals, fossils, and jewelry.
6. Mt. Lemmon and the SkyCenter
Rising above Tucson, Mt. Lemmon is a cool escape from the desert heat and hosts the SkyCenter, an astronomical observatory known for its SkyNights stargazing program. The drive up Mt. Lemmon Scenic Byway is as breathtaking as the panoramic views and diverse ecosystems it passes through, making the journey almost as rewarding as the destination.
7. Sonoran Desert cuisine
As the first UNESCO City of Gastronomy in the U.S., Tucson celebrates its culinary heritage through dishes like the Sonoran hot dog, tamales, and mesquite flour pancakes. Local ingredients like chiltepin peppers, mesquite pod flour, and prickly pear cactus are staples, showcasing the unparalleled flavors and biodiversity of the Sonoran Desert.
8. Hispanic culture
With a strong Hispanic influence, Tucson’s culture is infused with traditions, celebrations, and flavors that reflect its rich heritage. From festivals to authentic Mexican cuisine, the city’s Hispanic culture is an integral part of its identity. Tucson’s embrace of its Hispanic roots adds a unique and lively dimension to the city’s cultural tapestry.
9. Biosphere 2
Biosphere 2 is a groundbreaking research facility designed to study ecosystems and the possibilities of creating self-sustaining environments for human space exploration. Managed by the University of Arizona, it offers tours to the public, providing a unique glimpse into scientific experiments that range from rainforest conservation to oceanic behavior.
10. University of Arizona
The University of Arizona is a premier public research institution that significantly contributes to the educational and economic prowess of the city. With a strong emphasis on innovation, the university offers a range of academic programs, research initiatives, and community engagement efforts. Beyond that, the campus is also home to a ton of museums, arts venues, and the Arizona Wildcats sports teams.
“Builder sentiment has improved as interest rates have dropped and buyers have begun to return in increasing numbers,” said Kelly Mangold, principal at RCLCO Real Estate Consulting. “As fears of a significant recession lessen, buyers who have been sidelined for the past year or more feel more confident about making a purchase.” Read more: Is … [Read more…]
The year 2024 has started with cautious optimism that mortgage rates will drop, sparking much-needed activity in the sluggish U.S. housing market.
Mortgage rates, however, have been on a rising trend of late. Recent data shows that the economy is booming, while the Federal Reserve is signaling that it will take its time before cutting benchmark interest rates.
HousingWire’s Mortgage Rates Center showed the 30-year fixed-rate mortgage at 7.21% on Feb. 23. And according to Freddie Mac‘s Primary Mortgage Market Survey, the average rate inched closer to 7% this week.
Fannie Mae, however, remains optimistic that housing market activity will pick up as existing home sales and new single-family housing starts are expected to grow modestly in 2024.
While existing home sales dipped slightly in December by 1% to a seasonally adjusted annual rate of 3.78 million units, an increase in mortgage applications and December pending home sales that led to average closing times of 30 to 45 days indicate that a modest rebound in sales is underway.
With a low supply of existing homes for sale, demand for new homes is likely to remain strong, and the limit on new home sales will be determined by homebuilder production capacity, according to a report released Friday by Fannie Mae’s Economic and Strategic Research (ESR) group.
“Single-family permits in contrast edged up 1.6 percent in January, back in line with the overall starts series,” the report noted. “With single-family permits and starts now back in alignment, we expect new single-family construction to continue to drift upward in coming months.”
Fannie Mae forecasts total mortgage origination volume of $1.92 trillion in 2024, down slightly from $1.98 trillion in its previous forecast. Volume is expected to climb to $2.36 trillion in 2025, compared to the ESR group’s January forecast of $2.44 trillion.
Softening economic growth anticipated
The ESR group upgraded its 2024 macroeconomic growth outlook due to a stronger-than-expected fourth-quarter 2023 gross domestic product (GDP) report, as well as incoming data on recent population growth and immigration trends that point to faster payroll and GDP gains over the forecast horizon.
Fannie Mae’s 2024 GDP outlook is for 1.7% growth in 2024, compared to 3.1% in 2023. The ESR group previously forecast a “mild recession” for 2024.
“An unsustainably low savings rate suggests softer consumer spending going forward, consistent with the pullback in January retail sales, and slowing local and state tax receipts point to slower direct government spending growth,” the report stated.
Further, while payroll growth looks to have reaccelerated in December and January, other labor market measurements indicate softness. The ESR group expects that the labor market “on net” is likely to cool in the near future.
“Market dynamics continue to reflect significant uncertainty regarding the sustainability of stronger-than-expected recent GDP growth, the continuity of the decline of inflation, and the path of monetary policy change, not to mention the many ways in which historical relationships in housing and the larger economy remain out of balance post-pandemic,” Doug Duncan, Fannie Mae senior vice president and chief economist, said in the report.
Selling your house is often one of the largest financial transactions you’ll make in your life. It can be complex and emotionally challenging, especially if it’s your first time dealing with a home sale or if the house is full of family memories.
Despite these challenges, millions of people successfully sell their homes each year. The process is well-trodden, but each sale has its unique circumstances and can come with many curveballs.
Whether you’re downsizing, upgrading, relocating, or just ready for a change, selling your house is a big step. The task might seem daunting, but remember, you’re not alone. Many resources can guide you through this process, providing advice and support along the way.
This guide aims to simplify the process and provide you with step-by-step instructions to help sell your house.
From setting your objectives to finally handing over the keys, we’ll walk you through each stage. We will address common challenges and offer expert insights to ensure you’re well-prepared for the journey ahead. Our goal is to help you sell your house at the best possible price within your desired timeline, while minimizing stress and maximizing satisfaction.
Understand Your Selling Objectives
The first step in any successful real estate transaction is understanding your motivations and objectives for selling. Be clear about your goals and timeline to create a selling strategy that will get you the price you want for your home within the timeframe desired.
Why are you selling?
Your motivations for selling might be tied to lifestyle changes, financial circumstances, or relocation for work. Perhaps you’ve outgrown your current house, or maybe it’s become too big after the kids have moved out. You might need to relocate for a new job or prefer a change in scenery as you approach retirement. By identifying your reasons for selling, you’ll have a clearer idea of what you want to achieve with the sale.
What’s your timeline?
Your timeline can significantly influence your selling strategy. If you’re in a rush due to reasons like a job relocation or closing on another home, you may have to price your property more competitively to attract a faster sale. However, if you have the luxury of time, you can afford to be patient and wait for an offer that matches your ideal price.
Evaluate Your Financial Position
Understanding your financial situation is essential in the home-selling process. A realistic view of your finances will help you make informed decisions, particularly in setting a reasonable asking price.
Understand Your Home Equity
Equity refers to the portion of your property that you truly “own” – it’s the difference between the current market value of your home and the remaining balance on your mortgage. Knowing your equity can give you an idea of your potential profits from the sale.
Consider Your Outstanding Mortgage
The amount left on your mortgage is another critical factor. If your outstanding balance is more than your home’s sale price, you may need to consider a short sale, which requires your lender’s approval and can affect your credit score.
Estimate Closing Costs
Closing costs are the fees and expenses you pay to finalize your home’s sale, excluding the commission for the real estate agent. They may include title insurance, appraisal fees, and attorney fees, among other costs. These are usually about 2-5% of the purchase price. Understanding these costs is crucial as they directly impact your net proceeds from the sale.
Taking the time to clarify your selling objectives and understanding your financial position will pave the way for a more streamlined and successful home-selling experience. These factors are not just critical for setting a realistic asking price but also for aligning your home sale with your larger financial or life goals.
Prepare Your House for Sale
Once you’ve identified your selling objectives, the next step is to prepare your house for the market. A well-prepared home can catch the attention of more prospective buyers and even command a higher sale price.
Home Improvements and Necessary Repairs
Before you list your home, assess its overall condition. Some minor upgrades and necessary repairs can significantly enhance your home’s appeal, often leading to a faster sale or higher selling price.
Deep Cleaning and Carpet Cleaning
Begin with a deep clean to ensure your home looks its best. Pay attention to often-overlooked areas, such as baseboards, window sills, and ceiling fans. If you have carpets, consider hiring a professional carpet cleaning service to remove any stains or odors. Cleanliness can significantly influence a buyer’s first impression.
Minor Upgrades and Fixes
Next, tackle minor upgrades and repairs that could deter potential buyers. This could include painting walls with a fresh, neutral color, fixing any plumbing or electrical issues, and ensuring all appliances are in working order. Although these tasks may seem small, they can make a big difference to potential buyers.
Stage Your House
Staging your house involves preparing it for viewing by potential buyers. It can significantly impact how quickly your home sells and the price.
Hire a Professional Stager
A professional stager, although an extra cost, can be a worthwhile investment. For a few hundred dollars, they can transform your space and make it appealing to as many potential buyers as possible. They use strategies like optimal furniture placement, accentuating natural light, and choosing neutral decor to make your home attractive and inviting.
Depersonalize Your Home
Part of effective staging involves depersonalizing your home. This means removing personal items like family photos, collections, and mementos. The aim is to create a neutral space where potential buyers can easily envision themselves and their own belongings. It’s all about helping buyers picture your house as their future home.
In the competitive real estate market, first impressions count. By investing time, money and effort in staging your house for sale, you can stand out from the competition and make a great impression on prospective buyers. These preparations could translate into a quicker sale and potentially a higher price.
Set the Right Price
One of the most critical decisions in the home-selling process is determining the right asking price. Setting a competitive price can help attract more prospective buyers, shorten the time your home spends on the market, and potentially yield a higher sale price.
Understand the Importance of Pricing
Choosing the right price is not just about the amount you’d like to receive. It’s also about understanding buyer psychology and local market trends. Pricing your home correctly can result in more interest, more showings, and ultimately, more offers.
Get a Comparative Market Analysis
A key tool for setting the right price is a Comparative Market Analysis (CMA). A CMA provides information about recent home sales in your area, adjusted for differences in features and conditions, giving you a good idea of what buyers might be willing to pay for your home.
Hire a Great Real Estate Agent
A great real estate agent can provide an accurate and comprehensive CMA. They have the experience and local market knowledge to understand which homes are truly comparable to yours and how various features and upgrades impact pricing.
Consider Comparable Sales
Comparable sales, or “comps,” are recent home sales in your area that are similar to your property in size, condition, and features. Your real estate agent will look at these comps, adjust for differences, and use the information to guide you towards a fair and attractive list price.
Adjust for Features and Conditions
Every home is unique, and its features and condition will impact its value. Your real estate agent will consider these factors when setting your home’s list price. For example, if your home has a new roof or a remodeled kitchen, it might command a higher price compared to a similar home without these upgrades.
Setting the right price is both an art and a science. It requires an understanding of the local real estate market, an evaluation of comparable sales, and an assessment of your home’s unique features. By enlisting the help of a great real estate agent and leveraging their expertise, you can set a competitive price that will attract serious buyers and maximize your profits.
Market Your House
Once your house is ready for sale and priced right, the next step is to get the word out to prospective buyers. Effective marketing can attract more interest and lead to quicker, more competitive offers.
Use High-Quality Professional Photos
Professional photography plays a crucial role in marketing your house. High-quality photos can showcase your home’s best features and give potential buyers a good first impression. Homes listed with professional photos tend to receive more views online, which can lead to faster sales and often at higher prices.
Craft a Compelling Listing Description
A well-written listing description can spark interest and invite potential buyers to learn more. Highlight your home’s unique features, recent upgrades, and what makes it special. Remember, you’re not just selling a property, you’re selling a lifestyle. Allow your real estate agent to offer feedback and help you create an enticing, optimized listing that will also show up in search results when people are looking for a home like yours.
Host Open Houses and Private Showings
Open houses and private showings are opportunities for potential buyers to experience your home in person. Be flexible with your schedule and make your house available for viewing as often as you can. The more people who walk through your door, the better your chances of receiving an offer.
The Role of a Good Real Estate Agent in Marketing
Marketing a house involves a significant time commitment and a specific set of skills. This is where a good real estate agent comes into play.
Leverage the Multiple Listing Service (MLS)
A good real estate agent can list your property on the Multiple Listing Service (MLS), a database of homes for sale that’s used by real estate professionals. An MLS listing can increase your home’s visibility, attracting other real estate agents and their clients.
Find a Realtor with A Proven Track Record
Choose a real estate agent with a proven track record of sales in your area. Their experience and local market knowledge can be invaluable in promoting your home effectively and attracting serious buyers.
In a crowded real estate market, standing out is key. By leveraging professional photography, crafting a compelling listing description, and utilizing the expertise of a good real estate agent, you can market your home effectively, attracting more potential buyers and increasing your chances of a successful sale.
Evaluate Offers and Negotiate
Once your marketing efforts start paying off and offers begin to come in, it’s time to shift focus to negotiation. The goal here is to achieve the best possible terms that align with your selling objectives.
How to Evaluate Offers
When you receive an offer, it’s essential to look beyond the offered price. While the highest offer might seem the most appealing, it’s not always the best choice.
Consider the Buyer’s Lender
Understanding where the buyer’s financing comes from is important. Offers from buyers who are pre-approved by a well-known lender may carry less risk than those from buyers who are not pre-approved or who are using a less established lender.
Assess the Down Payment
The size of the buyer’s down payment can indicate their financial stability. A larger down payment may suggest that the buyer has solid finances and is serious about purchasing your home.
Understand the Buyer’s Timeline
A buyer’s timeline can be just as important as their offered price. A qualified buyer who can close quickly might be more attractive than a higher offer that’s contingent on selling a current house.
How to Manage Multiple Offers
Receiving multiple offers can be exciting, but it can also be overwhelming. Your real estate agent can help you with this process.
Consult with Your Real Estate Agent
Your real estate agent’s experience can be invaluable in this situation. They can guide you through your options, help you compare offers side by side, and give advice based on their understanding of the current real estate market and the specifics of each offer.
Make the Best Decision Based on Your Needs
When reviewing multiple offers, it’s important to consider your own needs and priorities. For example, if you need to sell quickly, you might prioritize a buyer who can close sooner, even if their offer is not the highest.
Negotiating and accepting offers can be a complex part of the selling process. It’s not just about accepting the highest offer, but understanding the nuances of each proposal and making the best decision for your circumstances. With the right real estate agent by your side, you can handle this process confidently and successfully.
Close the Sale
After you’ve accepted an offer, the next step is to finalize the transaction. The closing process involves several stages, including a home inspection, title search, potential repair negotiations, and final paperwork signing. Here’s what to expect:
The Due Diligence Period
The due diligence period allows the buyer to further investigate the property after their offer has been accepted. During this time, the buyer’s agent will arrange for a home inspection.
Home Inspection and Report
A professional home inspector will thoroughly examine your property and generate an inspection report. This document details the condition of the house and outlines any potential issues, from minor maintenance concerns to significant structural problems.
Negotiating Repairs
If the inspection report reveals necessary repairs, there may be further negotiations. Buyers might ask you to handle the repairs, reduce the sale price, or offer a credit at closing to cover the repair costs.
The Title Search and Insurance
As part of the home buying process, the buyer’s lender will work with a title company to conduct a title search. This ensures the house is free from liens or claims and that you have a clear title to transfer to the new owners.
Understanding Title Insurance
Buyers might also negotiate for you to pay for title insurance as part of the closing costs. Title insurance protects the buyer and their lender from future property ownership claims, unexpected liens, or undisclosed property heirs.
Sign the Final Paperwork
The last step in the home sale process is the closing meeting. Here, you’ll sign the final paperwork, which includes key documents such as:
The Bill of Sale
This document transfers the ownership of personal property (like appliances or furniture) included in the home sale.
The Deed
This legal document transfers ownership of the property from you, the seller, to the buyer.
Documents Prepared by a Real Estate Attorney or Real Estate Brokerage
The closing process involves many legal documents. These might be prepared by a real estate attorney or real estate brokerage to ensure everything is in order.
Closing the sale of your house can be a complex process. However, understanding each step can help you proceed with confidence and reach a successful conclusion to your home sale journey.
Post Sale Considerations
Even after the final paperwork has been signed, and the new owners have the keys, there are a few additional factors to consider. The sale of your house doesn’t just end at the closing table. Let’s delve into these post-sale considerations.
Understand the Tax Implications
Selling your house can have significant tax implications. The application of taxes largely depends on the profit you make from the sale and how long you’ve lived in the house.
Capital Gains Tax Exemption
If the house was your primary residence for at least two of the last five years before selling, you might qualify for a capital gains tax exemption. This can significantly reduce your tax liability.
Consult with a Tax Professional
However, tax laws can be complex, and every situation is unique. Consult with a tax professional or a certified public accountant to fully understand the potential tax impacts. They can provide guidance tailored to your specific circumstances.
The Move to Your New Home
Moving to your new home involves logistical and financial considerations. Plan ahead for moving costs, including professional movers, moving supplies, and potential temporary housing.
Keep Records of Your Home Sale Expenses
It’s wise to keep a comprehensive record of all home sale-related expenses. This includes real estate agent commissions, home improvements made before the sale, and any fees or costs associated with closing. These records can be crucial for your future tax returns or financial planning.
Some of your moving costs may be tax-deductible if you or a member of your household is in the military, and you are moving due to a military order. Previously, moving costs were tax-deductible for many people who were relocating due to a job. After 2025, these deductions may return.
Conclusion
Selling your house is a significant event, and educating consumers about the process can reduce stress and result in a better outcome. By preparing your home, pricing it right, and working with a competent real estate agent, you can complete the transaction smoothly and efficiently.
The selling process might seem overwhelming, but with thorough preparation and the right team on your side, it can be an exciting time. Remember, every house can sell, it just requires the right strategy, a competitive price, and a bit of patience.
Frequently Asked Questions
What should I do if my house isn’t selling?
If your house isn’t attracting buyers, various factors could be at play. The asking price may be too high, marketing efforts might be insufficient, or the house’s condition could be deterring potential buyers. Consult with your real estate agent to pinpoint potential problems and devise solutions. You may need to reduce the price, enhance your marketing strategy, or invest in necessary home improvements.
Can I sell my house myself instead of using a real estate agent?
Yes, selling your house yourself is an option. This is known as “For Sale By Owner” (FSBO). However, selling a house involves complex tasks like pricing, marketing, negotiating, and handling legal paperwork. Real estate agents possess the expertise and experience to deal with these challenges. If you opt for FSBO, be prepared for a significant time commitment and be ready to handle these tasks yourself.
How long does it usually take to sell a house?
The timeline for selling a house can vary greatly and depends on numerous factors, such as local market conditions, the home’s condition and price, and even the time of year. On average, it can take anywhere from a few days to a few months. Your real estate agent can give you a better estimate based on local trends and your specific situation.
What is a seller’s market, and how can it impact my home sale?
A seller’s market occurs when the demand for homes exceeds the current supply. This often results in homes selling more quickly and at higher prices. If you’re selling your house in a seller’s market, it can be an advantage as you may get multiple offers and a higher sale price.
Should I make repairs before selling my house?
Whether to make repairs before selling your house often depends on the type and extent of the repairs and the overall condition of your house. Small repairs and improvements, like painting or fixing leaky faucets, can make a good impression on buyers. If your home has more more substantial issues, discuss the repairs with your real estate agent to weigh the cost against the potential return on investment.
U.S. new-home construction sank at the start of the year by the most since the onset of the pandemic, indicating the recovery in the housing market will be gradual as many buyers await a further decline in mortgage rates.
Residential starts decreased 14.8% last month to a 1.3 million annualized rate, after an upward revision to the prior month, government data showed Friday. Multifamily home construction plummeted by more than 35% after surging in the prior month, while single-family groundbreakings also slowed.
The headline figure — which was lower than all estimates in a Bloomberg survey of economists — was the slowest pace in five months.
“The monthly housing starts numbers are extremely noisy and prone to revisions, but the bigger picture is that single-family starts are trending higher, lagging the drop in mortgage rates towards the end of last year, while multi-family starts are trending lower, lagging the rollover in rent inflation,” Kieran Clancy, senior U.S. economist at Pantheon Macroeconomics, said in a note.
Building permits, a proxy for future construction, decreased to a 1.5 million rate. Permits for one-family homes edged higher after rising consistently throughout 2023, and multifamily authorizations fell 7.9%, the most since September.
The government’s report showed housing starts fell in all four of the nation’s regions, led by the Midwest and Northeast. The number of single-family homes completed plunged to the lowest level since May 2020.
The housing market’s recovery has struggled to maintain momentum as mortgage rates are still elevated near 7%. However, the nation’s builders have been gaining confidence in recent months on expectations that a further decline in borrowing costs will boost demand.
So far, builders have enjoyed limited competition from existing homes for sale. Homes available on the resale market are well below pre-pandemic levels as most owners remain reluctant to give up mortgages locked in at much cheaper rates.
At the same time, the inventory of new houses for sale remains elevated and suggests builders may be cautious about beginning new projects.
The National Association of Realtors will give a glimpse of the nation’s resale market Feb. 22, when it releases existing-home sales figures for January.
A separate report Friday showed prices paid to US producers rose in January by more than forecast, highlighting the sticky nature of inflation.
The average long-term rate remains in the mid-6% range, Freddie Mac said. The rate on a 15-year fixed-rate mortgage, popular for home refinances, fell to 5.90% from 5.94% last week.
LOS ANGELES— The average long-term U.S. mortgage rate edged higher this week, reflecting a recent uptick in the 10-year Treasury yield.
The average rate on a 30-year mortgage rose to 6.64% from 6.63% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.12%.
“Mortgage rates remain stagnant, hovering in the mid-6% range over the past several weeks,” said Sam Khater, Freddie Mac’s chief economist.
The move echoes an increase this week in the 10-year Treasury yield, which lenders use as a guide to pricing loans. The yield moved above 4% this week as bond traders reacted to the government’s January’s jobs report. The surprisingly strong report stoked worries that it could persuade the Federal Reserve to wait longer before it begins cutting interest rates.
Hopes for such cuts amid signs that inflation has declined from its peak two summers ago have been a major reason the 10-year Treasury yield has mostly pulled back since October, when it climbed to its highest level since 2007.
In an interview broadcast Sunday night, Fed Chair Jerome Powell said that the central bank remains on track to cut its benchmark interest rate three times this year, a move that economists expect could begin as early as May.
Investors’ expectations for future inflation, global demand for U.S. Treasurys and what the Fed does with interest rates can influence rates on home loans.
The cost of refinancing a home got a little bit less expensive this week. Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, fell this week, pulling the average rate down to 5.90% from 5.94% last week. A year ago, it averaged 5.25%, Freddie Mac said.
The cost of financing a home has been mostly easing since late October, when the average rate on a 30-year mortgage hit 7.79%, the highest level since late 2000. So far this year, the weekly average has ranged between 6.60% and 6.69%.
The overall decline in rates since their peak last fall has helped lower monthly mortgage payments, providing more financial breathing room for homebuyers facing rising prices and a shortage of homes for sale as the spring homebuying season nears.
Still, the average rate on a 30-year mortgage remains sharply higher than just two years ago, when it was 3.69%.
Many economists are projecting that mortgage rates will continue heading lower this year, though forecasts generally have the average rate on a 30-year home loan hovering around 6% by the end of the year.
“Homebuyers should expect mortgage rates to move lower as we head through 2024, but that does not necessarily mean it will be easier to buy a home,” said Lisa Sturtevant, chief economist at Bright MLS. “Waiting to buy later this year might mean a buyer can get a lower rate, but prices are still rising, and inventory will still be tight, which means the market will still be competitive.”
Elevated mortgage rates and a dearth of available homes have kept the U.S. housing market mired in a slump the past two years. Sales of previously occupied U.S. homes sank to a nearly 30-year low last year, tumbling 18.7% from 2022.
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Nestled in the heart of wine country, Santa Rosa, CA is a charming city with a unique blend of natural beauty and urban amenities. From exploring the stunning vineyards and wineries to hiking in the nearby redwood forests, there’s no shortage of outdoor activities to enjoy. The vibrant downtown area offers a diverse culinary scene, art galleries, and boutique shops, making it a perfect place for foodies and art enthusiasts.
Whether you’re searching for apartments in Santa Rosa, homes for sale, or are already a local, this Redfin article will be your guide. Here is Redfin’s list of the top 10 things to do in Santa Rosa, for both newcomers and long-time locals alike.
1. Visit Safari West
Safari West is a 400-acre wildlife preserve located in Santa Rosa. Visitors can embark on a safari adventure and see over 900 animals from 90 different species, including giraffes, rhinos, and cheetahs. It’s a unique opportunity to experience an African safari right in the heart of California.
2. Explore the Charles M. Schulz Museum and Research Center
The Charles M. Schulz Museum and Research Center is dedicated to the life and work of the creator of the Peanuts comic strip. Visitors can view original Peanuts artwork, learn about the history of the comic strip, and even try their hand at drawing their favorite characters. It’s a must-visit for fans of Charlie Brown and the gang.
3. Enjoy a day at Spring Lake Regional Park
Spring Lake Regional Park offers a variety of outdoor activities, including hiking, fishing, and picnicking. Visitors can also rent kayaks, canoes, and paddleboards to explore the lake. With beautiful scenery and plenty of recreational opportunities, it’s a great place to spend a day outdoors.
4. Visit the Luther Burbank Home and Gardens
Luther Burbank was a renowned horticulturist, and his former home and gardens are now a historic landmark. Visitors can tour the house and explore the beautifully landscaped gardens, which feature a wide variety of plant species. It’s a peaceful and educational attraction for nature lovers.
5. Sample local wines at Russian River Valley Vineyards
Santa Rosa is located in the heart of the Russian River Valley wine region, known for its world-class wineries. Visitors can take a wine tasting tour and sample a variety of local wines, including pinot noir and chardonnay. It’s a great way to experience the region’s wine culture.
6. Explore the Railroad Square Historic District
The Railroad Square Historic District is a charming area filled with shops, restaurants, and historic buildings. Visitors can stroll through the streets and admire the architecture, or stop in at one of the many unique boutiques and eateries. It’s a great place to soak up the city’s history and culture.
7. Take a hot air balloon ride over wine country
Santa Rosa’s proximity to wine country makes it the perfect place to take a hot air balloon ride. Visitors can soar above the vineyards and enjoy breathtaking views of the rolling hills and valleys. It’s a memorable way to experience the beauty of the region.
8. Visit the Pacific Coast Air Museum
The Pacific Coast Air Museum is dedicated to preserving and showcasing vintage aircraft. Visitors can explore the museum’s collection of planes and learn about the history of aviation in the region. It’s a fascinating attraction for aviation enthusiasts of all ages.
9. Attend the Luther Burbank Rose Parade and Festival
The Luther Burbank Rose Parade and Festival is an annual event that celebrates the city’s horticultural heritage. Visitors can enjoy a colorful parade featuring floats adorned with beautiful roses, as well as live music, food vendors, and activities. It’s a fun and festive experience for the whole community.
10. Explore the Sonoma County Museum
The Sonoma County Museum showcases the art, history, and culture of the region. Visitors can view a variety of exhibits, including contemporary art, historical artifacts, and interactive displays. It’s a great way to learn about the diverse heritage of Santa Rosa and its surrounding areas.
You may have a preconception about moving to Omaha. But once you’re in the city, it exceeds expectations and is a place you don’t want to leave.
Omahans enjoy outstanding attractions, such as the Henry Doorly Zoo and Aquarium, considered one of the top zoos in the world. With nearly 130 acres of indoor and outdoor exhibits, the zoo claims to have the world’s largest indoor desert dome and the top indoor rain forest in North America. The African Grasslands and Asian Highlands feature animals in natural settings.
The Durham Museum showcases Omaha’s history, such as its early days as a railroad center and the site of the 1898 World’s Fair, a.k.a. Trans-Mississippi Expedition. Outdoor attractions include Fontenelle Forest, with more than 15 miles of natural trails among the bluffs overlooking the Missouri River, as well as the downtown riverfront, which is home to the Bob Kerrey Pedestrian Bridge, one of the longest bridges connecting two states as Nebraska and Iowa meet in the middle of the river.
Omaha’s culinary scene rivals that of many bigger cities in the U.S. With several James Beard Foundation-nominated chefs, you’ll find restaurants featuring fresh handmade dishes from around the world. Farm-to-table dining is popular, with restaurants like The Grey Plume, Dante and Au Courant leading the way. It’s hard to taste better Italian dishes than you’ll find at Lo Sole Mio or Malara’s. South Omaha is ripe with authentic Mexican eateries.
While the city doesn’t have any major league sport, it’s an amateur sports mecca. From the College World Series in June to hosting multiple U.S. Olympics trials, including swimming and curling events, Omaha attracts hundreds of thousands of fans to the area. Omaha is also home to the Storm Chasers, the top minor league baseball team for the Kansas City Royals.
Keep on reading to see if moving to Omaha is a fit, and why you’ll love to live there and strive to keep it “America’s best-kept secret.”
Omaha overview
Omaha is home to four of Forbes Top 500 companies, led by Berkshire-Hathaway. With local billionaire Warren Buffett at the helm, Berkshire-Hathaway is among the top five companies by Forbes. Other top Forbes companies include Union Pacific (No. 141), Mutual of Omaha (337) and Kiewit Corp. (339).
While enjoying major economic success, Omaha maintains a Midwestern small-town feel, where it’s common for people to say hi as they see you on the street and hold the door for you when entering buildings.
While experiencing growth and development in neighborhoods across the city, the Omaha cost of living continues to remain strong, along with steady job growth.
Population: 478,192
Population density (People per square mile): 3,217.9
Median income: $59,266
Studio average rent: $864
One-bedroom average rent: $946
Two-bedroom average rent: $1,173
Cost of Living index: 93.4
Popular neighborhoods in Omaha
Moving to Omaha offers you a chance to explore the city’s history, culture and diversity. While west and southwest Omaha offers the feel of suburbia, Omaha’s most popular neighborhoods remain the oldest and most upscale.
From the riverfront to midtown, you’ll find a mix of older and contemporary apartments and condominiums to call home, while also enjoying easy access to culture, parks, vintage shops and a fun nightlife scene, featuring outstanding eateries and bars.
Old Market: Old Market is the heartbeat of Omaha. The nine-block area hosts one of the Midwest’s longest-running farmers markets each summer and fall. The entertainment district is family-friendly during the day, with restaurants, shops and galleries open, before becoming an adult-centric neighborhood at night, as couples dine out and then hit bars and clubs, creating a fun, party atmosphere.
Benson: One of Omaha’s oldest neighborhoods, Benson is an eclectic mix of art galleries, coffee shops, craft breweries and restaurants. Toss in vintage and unique clothing shops, and you’ve found the city’s “Hipster” area. During “First Fridays,” galleries and other businesses stay open later on the first Friday of each month, along with entertainment and even food trucks lining the streets.
Midtown: Popular with young professionals moving to Omaha, Midtown is a mix of contemporary apartments and condos with older homes. The Midtown Crossing entertainment district is home to some of the best restaurants in Omaha, as well as unique retail outlets. Midtown is the site of the Jazz on the Green festival each summer.
Dundee: Considered Omaha’s first suburb, Dundee is home to classic apartments, as well as modern outlets. With fantastic local eateries, such as Ahmad’s Persian Café, Saddle Creek Breakfast Club and J. Coco, calling the area home, it’s one of the city’s best dining areas. It’s also home to Warren Buffett, whose house in Happy Hollow borders the neighborhood.
Blackstone: Nestled between Midtown and Dundee, Blackstone is one of Omaha’s newest entertainment districts. Heavy on restaurants and bars, such as Noli’s Pizzeria and Butterfish, it also offers excellent spots to relax and enjoy a treat or coffee at Coneflower Creamery and Archetype Coffee.
The pros of moving to Omaha
Omaha offers people excellent attractions, restaurants, outdoor activities and a sports scene that makes other cities jealous. With plans to expand the riverfront, downtown Omaha will rank as one of the most beautiful and fun areas in the Midwest. Here are three reasons why you’ll enjoy moving to Omaha.
Excellent employment opportunities
With one of the lowest unemployment rates in the United States at less than 5 percent, Omaha is home to major leaders in healthcare, transportation, agriculture and insurance. Several people moving to Omaha are with companies, such as Union Pacific, Pacific Life and Aflac.
Tech companies are finding their way to Omaha, with the city earning the nickname “Silicon Prairie,” as Facebook and Google are among companies opening data centers in the area.
Enjoy the commute
Nicknamed the “15-minute City,” Omaha is easy to get around. The commute is actually about 20 minutes, as the city grows and expands its boundary westward. Regardless, the main thoroughfares, such as Dodge, Maple, Pacific and Center streets, run east-west, while the interstate system continues to add lanes to ease morning and afternoon commute issues.
The cost of living is a huge plus
With a cost of living index rating of 93.4, among the best in the United States, moving to Omaha benefits you financially. Everything tends to cost less here than in other cities of similar size, such as groceries, utilities, rent and gasoline. You can enjoy an evening out on the town without worrying about mortgaging the farm.
The cons of moving to Omaha
While Omaha enjoys economic success, the city faces challenges to keep its young professionals in the area, among other issues. Here are three areas of concern when considering moving to Omaha.
Lack of diversity
Whites make up about 66 percent of the population, while the African American community is the largest ethnic minority, accounting for about 12 percent of the city’s population. Hispanics make up about 11 percent, while Asian Americans and Native Americans account for about four percent.
While Omaha hasn’t experienced racial tensions like other cities, people have targeted minorities as a way of gaining political power, including focusing on undocumented workers or perceived high crime rates. Minority residents have protested unfair treatment by law enforcement and the court system.
Public transportation is a challenge
Omaha is a car city. Without a vehicle, you’ll be challenged to easily get around town. While Uber and Lyft are successful in Omaha, the city’s public transportation system is lacking for many residents.
With bus routes that run east-west, focusing on stops toward downtown, the Metro Transit system doesn’t run 24/7, which impacts people who prefer using public transportation. The new ORBT route runs from the Westroads Mall to downtown, but again, it’s not designed for 24/7 service.
Winter can be severe
Winters in Omaha are hit-or-miss — it may snow a lot or just a few inches. However, when it gets cold and snowy, traffic comes to a standstill. Literally. You’ll find parking lots on some of the main routes, because, as people joke, “two inches of snow shuts down the city.” Snow removal is an annual challenge, as well as the potholes that come with the winter season.
How to get started on your move to Omaha
Omaha’s attractions, culinary scene, sports community and commute are winning factors to consider when it comes to moving to Omaha. Regardless of the neighborhood you choose to call home, you’ll only be minutes from most major attractions, parks and restaurants.
To assist with your move as you pack up to head to the Big O, visit our Moving Center to get free quotes and more information about planning your move. Also check out available apartments for rent and homes for sale – you can’t move if you don’t have a place to live, after all.
Rent prices are based on a rolling weighted average from Apartment Guide and Rent.’s multifamily rental property inventory of one-bedroom apartments. Data was pulled in December 2020 and goes back for one year. We use a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
Population and income numbers are from the U.S. Census Bureau.
Cost of living data comes from the Council for Community and Economic Research.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
Tim is an Omaha-based freelance writer, online content creator and author who loves exploring the Midwest and beyond. In addition to writing The Walking Tourists travel blog, he has co-authored three books with his wife, Lisa: 100 Things to Do in Omaha Before You Die, Unique Eats and Eateries of Omaha, and 100 Things to Do in Nebraska Before You Die. Tim is a dad to two daughters and three cat sons. He is an avid sports fan, primarily enjoying football and hockey.
It’s no secret that 2023 was a difficult year to buy a home. With mortgage rates briefly topping 8% and home prices breaking records throughout the year, many would-be sellers simply decided not to bother listing their homes, exacerbating already tight inventories.
New data from the U.S. Census Bureau published last week shows how drastically housing inventory has changed since 2020, while weekly data from Altos Research offers some insights on where it goes from here.
Census Bureau data on housing inventory estimates details two cycles this decade – the onset of the pandemic and the rise of interest rates – that have been catastrophic for the nation’s for-sale housing inventory.
2020-2021: The shock to the system
The onset of the pandemic and government lockdowns sparked a frenzy for homes, especially those away from crowded downtowns and with ample space for home offices and homeschooling. Prospective homebuyers were armed with low interest rates, paused student loan payments and stimulus checks.
The number of owner-occupied homes skyrocketed, quickly depleting the number of vacant for-sale homes. Renters occupied fewer homes, and fewer vacant homes were reserved for them.
The number of homes “held off market” – second homes, vacation homes and others that are neither for-sale, for-rent or occupied – shrank. This could be because their owners snagged profits amid rapidly rising prices, because those who can afford second homes paused buying, or a combination of the two.
Seasonal housing, too, dropped considerably. This is likely due to the fact that seasonal housing – defined as homes intended for periodic occupancy such as for holiday resort guests or farm workers – could be profitably sold to meet soaring homebuyer demand and was not needed during the pandemic’s travel restrictions and weak travel demand.
Most of the trends begun in 2020 continued in 2021 except for renter-occupied homes, which rose above 2019 levels in the second half of the year. This was likely a reflection of the prolonged decline in vacant homes for sale, which made it difficult for would-be buyers to find a home to purchase.
Many of the same pandemic forces that set off the homebuying frenzy also fueled a frenetic pace of inflation. In 2022, the Federal Reserve began taking action to combat these market forces by raising interest rates, starting the second cycle of inventory changes.
2022-2023: The high-rate environment
Over two years, the Federal Reserve hiked rates 11 times for a total increase of 5.25 percentage points, the fastest pace of hikes in four decades. It has held rates at an effective rate of 5.33% in every meeting of the Federal Reserve Open Markets Committee since July 2023, including in their meeting last week.
Mortgage rates followed suit, walloping buyers’ purchasing power. The sudden run-up in rates discouraged would-be sellers from listing their homes, as they would be faced with much higher monthly payments for the same size home were they to sell and buy another home – if they even qualified for the same size home as they currently own.
This squeezed inventory even further throughout 2022 and 2023, pushing home prices to record highs month after month.
The high-rate environment further pushed owner occupancy up while pushing homes held off market, seasonal housing and homes vacant for sale down. That the number of owner-occupied homes rose throughout 2023 – an abysmal year for home sales – shows just how tightly recent homebuyers are holding onto their low rates.
High rates, combined with low for-sale inventories and high home prices, have also resulted in a surge in home renters. There were nearly 2 million more renter-occupied homes in the fourth quarter of 2023 than in the same quarter of 2019.
The environment has also prompted many homeowners to list their homes for rent rather than sale. The number of homes vacant for rent in the fourth quarter of 2023 was up 4% since the same quarter five years ago, while the number of homes vacant for sale was down 36%.
When inventory bounces back
The extremes of the 2020s have dealt big blows to for-sale inventories. First the 2020-2021 housing frenzy took a big bite out of existing inventories, then the 2022-2023 streak of rate hikes kept would-be sellers from replenishing those inventories.
The 2020s have also seen for-sale inventory siphoned from second homes, vacation homes and seasonal homes. Homebuilders, too, have added to for-sale inventory, pushing the total number of homes in the U.S. up 8.7% since the fourth quarter of 2018. But none of these valves have alleviated the shortage of for-sale homes or the resultant high home prices.
The majority of homes that would be up for sale are being held by owners with low mortgage rates who would rather stay put or rent than sell, a phenomenon known as the “mortgage rate lockdown.” Plus, boomers are aging in place for longer, further depleting available housing stock. In fact, the number of owner-occupied homes is at an all-time high, while the percentage of homes that are owner-occupied is well above pre-pandemic levels.
The only apparent change that could induce significant for-sale inventory back into the market, then, is lower mortgage rates. How quickly would sellers return if rates were lower? We got an early test in December and January when the FOMC forecasted rate cuts in 2024.
As rates began falling steeply from October through December and hovered around 6.6% in January, new listings increased on a year-to-year basis in 14 of 15 weeks, according to data from Altos Research, which, like HousingWire, is owned by HW Media.
The data is an encouraging sign that owners with homes to sell will be responsive to mortgage rates, suggesting rate cuts this year could bring about a rapid uptick in homes for sale.
Less encouraging, however, is how soon the market might see rate cuts. Mortgage rates rose above 7% this week for the first time in 2024 following a strong jobs report and comments by Federal Reserve Chairman Jerome Powell that suggested cuts were less imminent than many bond and equity traders had assumed.