Real Estate Explained in Plain English

Fall is one of my favorite times of year in Howell.

The leaves will soon be changing, the weather is cooling off, and we’re heading into another seasonal change in the real estate market.

I’ve been spending some time looking at the latest Howell housing numbers, and there’s something interesting going on.

Howell is still a pretty strong seller’s market. But that doesn’t mean it’s an easy market for everyone.

If you’re buying, affordability can be a challenge. And if you’re thinking about selling, you may be wondering whether it makes sense to give up your current mortgage rate and whether you’ll be able to find your next home.

So let’s take a look at what’s happening and what it means if you’re thinking about buying or selling in Howell.

Inventory Is Still Tight

There were 125 homes for sale in Howell in August, compared with 119 a year ago. That’s only a small increase.

But here’s the number that really got my attention.

Only 54 new listings came on the market in August, compared with 78 last August. At the same time, 158 homes were pending, slightly more than the 152 we had a year ago.

So we’re still seeing plenty of activity. We’re just not getting a lot of new homes coming onto the market to replace the ones that are selling.

If you’d like to move but have a low mortgage rate now, you may be reluctant to give it up. That’s especially true if you’re considering moving up to a larger or more expensive home.

When you look at what you’re paying now and what your payment could be on the next house, it can give you second thoughts.

There’s another concern I hear too.

“If I sell my house, am I going to be able to find something I want to buy?”

That’s a real consideration when there aren’t a lot of choices in the area or price range where you’d like to move.

It’s Still a Good Market for Sellers

The median sale price for a Howell home in August was $682,000, up from $655,000 last August.

Homes also sold for an average of 100.5% of their asking price.

That doesn’t mean your house will automatically sell over asking, and it certainly doesn’t mean you can put any price you want on it.

But if your home is properly priced and marketed, you’re still in a market where homes are selling quickly and, in many cases, over list price.

The important words to note are “properly priced.”

In last week’s Wayne Explains the Market, I talked about the biggest pricing mistakes you can make when selling your home. One of the biggest is assuming you can start high and always reduce the price later.

Even in a seller’s market, price matters.

If buyers don’t see the value in your house at the asking price, they may simply move on.

And reducing the price later doesn’t give you back those first few weeks when your listing was new.

If You’re Buying, You’re Feeling the Squeeze

If you’re buying a home, you have your own challenges.

Affordability is a huge factor right now. Higher home prices combined with today’s mortgage rates can put a lot of pressure on your monthly payment.

On top of that, you may be frustrated by the lack of suitable homes in your price range.

You may also find yourself being very selective about condition.

If you’re already stretching your budget to buy the house, you may not want to spend another $30,000 or $40,000 fixing it after you move in.

You may also be sitting on the fence waiting for mortgage rates to come down.

I understand the thinking. A lower rate means a lower payment.

But there’s another part of the equation.

While you’re waiting for rates to come down, home prices aren’t necessarily waiting with you.

The median sale price in Howell was 4.1% higher this August than it was a year ago. We don’t know what home prices will do over the next year, just like we don’t know exactly where mortgage rates will be.

If you find the right house now and the payment works for you, you may have the opportunity to refinance later if rates eventually come down.

What you can’t do is go back later and buy the house at today’s price. That’s why I don’t think trying to time mortgage rates should be the only thing that determines when you buy.

What Happens as We Head Into Fall?

Real estate has always had a seasonal rhythm.

We usually see activity pick up in the fall, and then both buyer and seller activity tend to drop off around Thanksgiving. The market is generally quieter through the holidays and into winter before the spring market starts picking up around the Super Bowl.

I’ve told sellers for years that a quieter market isn’t necessarily a bad time to sell.

If you’re selling during the holidays, there may be fewer buyers out looking.

But there are also fewer homes coming onto the market, which means less competition for you.

And I’ve found that if you’re house hunting in December or January, there’s often a pretty good reason you need to make a move. If you’re spending your weekend looking at houses a week before Christmas, you’re probably serious about buying.

Your home can show really well during that time too. Holiday decorations can make it feel warm and inviting.

So if you ask me in October or November whether you should sell now or wait until spring, I’m not automatically going to tell you to wait.

There are advantages to both.

And I wouldn’t base your decision entirely on the hope that mortgage rates will be lower six months from now. Nobody knows where they’ll be.

A Little Bit About Howell

One of the things I’ve enjoyed about living here is the mix Howell offers.

Fall at the Manasquan Reservoir in Howell. Photo by Wayne Zuhl.

There are plenty of places to shop and things to do, but you don’t have to go very far before you’re near parks, the reservoir or farm country. You’re also roughly an hour from either New York or Philadelphia, depending on where you’re going and, of course, traffic.

The town offers some great programs for residents too. The farmers market is still going, there are workshops and community programs, and this time of year there are plenty of fall activities around the area.

And when the leaves change, Howell is simply stunning.

It’s one of the things I’ve really come to appreciate about living here.

Wayne’s Bottom Line

So, what does all of this mean for you?

Howell is still a strong seller’s market as we head into fall.

If you’re selling, tight inventory and higher prices than a year ago are working in your favor, particularly if your home is properly priced and marketed.

If you’re buying, you’re dealing with affordability, mortgage rates and a limited number of homes that may fit what you’re looking for.

And if you’re thinking about selling and buying another home, you may be reluctant to give up your current mortgage rate or wondering what you’ll be able to buy after you sell.

We’re also heading into the time of year when the normal seasonality of the market starts to come into play.

That’s why I think it’s important to look beyond the headlines and understand what’s happening right here in Howell and what it means for you.

If you’re a Howell homeowner and you’re curious about what your home might be worth in today’s market, I offer a free market analysis with no obligation. I’ll look at the recent sales, what’s currently for sale and what’s happening in your part of town to give you a realistic idea of where your home fits in today’s market.

And if you’re thinking about buying or selling and want to talk through your options, give me a call. I’m always happy to sit down, look at the numbers and help you make sense of them.

If you’re not quite ready for that conversation, you can also download my free Buyer or Seller Guide to get a better idea of what to expect.

Until next time, I’m Wayne Zuhl, and I help neighbors find their place in the universe.

Next Week in Wayne Explains the Market

What Happens After Your Offer Is Accepted?

Getting your offer accepted is exciting, but there’s still a lot that has to happen before you get the keys. Next week, I’ll walk you through what you can expect as a New Jersey home buyer after your offer is accepted, from attorney review and inspections to the appraisal, mortgage commitment, final walkthrough and closing.

All opinions, information and data provided is deemed reliable but is subject to errors and omissions. Not intended to solicit other Brokers’ clients. We cooperate with them fully.