Housing Prices 2022 and How to Maximize Opportunities
Housing Prices 2022 and How to Maximize Opportunities
Full Video Transcript Below
[00:00:00] Good morning, real estate fans. Alice Lema here, broker John L. Scott in Southern Oregon with another edition of our weekly podcast. And today we're going to talk about prices in 2022. What's going to happen and I've got four ways, four ways to maximize your opportunity, regardless of what side you're on.
[00:00:24] Okay, but before we start that, I want to give you a second to please like the channel, subscribe to the channel, send me some questions, some comments, share it with your friends and family. We want people to have thisas it' s helpful. I get a lot of phone calls and text messages and have more people to help. And I so appreciate that. Thank you so much. Also let me know how these tips work out for you. You know, we're getting some good feedback from that too.
[00:00:53] Okay. So enough of that let's get on to what is happening with home prices in 2022 and give you four ways to maximize your opportunity. Okay. So first of all, let me just kind of lay the land here. We have a stabilizing market in front of us, please, hopefully at least that's all the signals we're getting. So we had hyper acceleration during the shutdown and the Covid and the fires here in Southern Oregon anyway. And then we had the the changing market as it tries to settle and it's very volatile and we're trying to come out of that as more and more inventory comes into the market.
[00:01:28] It slows it down a little bit. And also the interest rates. So we're looking for a stabilizing market in 2022, and the impact should be noticeable on the graphs and the projections show this as well in the mid year 2022 onto the end of 2022, that's due to more inventory and the effect of rising interest rates.
[00:01:51] So with that picture in our head, The first thing to do is watch the days on market and you'll see the little initials D O M capital Dom that stays on market and keep in mind now a normal market has hundred and eighty days on market, 120 to 180. So that's five to six months, four to six months. That's what a normal market looks like.
[00:02:19] We haven't had that in, who knows how long, but for now, as we're transitioning out of all of this volatility, you watch the Dom and that is an indicator of that area, that neighborhood that house has of how quickly buyers are reacting to, how quickly buyers are scooping up these properties. So buyer reaction time shows up in the Dom the days on market.
[00:02:44] Why does that matter? Because you can tell if a market is slowing down, speeding up or stabilizing, and whether you're buying or selling, you got to know those numbers. Okay. Data helps in the science of real estate. So that's number one. Watch the days on market.
[00:03:00] Number two, watch the back on market. B O M no, not all the websites have that your real estate agent will, so get with your real estate agent. Hopefully it's me. So call me or get with me and let's talk about the back on market for that area, for that house for That zip code. And that is an indicator of buyer tolerance.
[00:03:25] And again, even if you're selling, especially if you're selling, you want to know this. Okay because if people's escrows are failing, so you go to all the trouble to secure a buyer, right? Buyer goes into contract you're in the contract, you're going through the contract timelines and whatever due diligence you're doing. And the buyer changes their mind. The buyer gets out of the deal back on market is super important to watch. Cause when you see a lot of those happening, it's pointing to the tolerance, the buyers have to the condition of the property that they are bidding on. It also shows that they might be jumping ship because the inventory is going up.
[00:04:07] So let's, let's picture this. You're in on a home and something better comes on the market, two days later, two weeks later, and it's less money and it's a better property. What are the chances you're gonna try to wiggle out as a buyer and the seller may or may not know that. A lot of sellers kind of go to sleep during escrow bad idea. You want to stay on the websites. You want to know stuff.
[00:04:33] How fast the neighbors are selling. How many more people are listing. But that back on market is super, super important. And if you're selling, it should give you pause. If you see a lot of back on markets in your area, let's go find out what's going on and try to prevent that from happening to you. If you're buying back on market, I say feeding frenzy, because it means there's volatility in your favor. So watch that. \
[00:05:02] Okay. Because it's telling again, the tolerance for condition and in a sellers market buyers will put up with more more, more problems with the house itself, more problems the property itself then in a transition market and a buyer's market. So back on market BOM indicator buyer tolerance and also reaction to increased inventory. If you're selling you better have the best deal and the prettiest house on the market, so you don't lose your buyer. Okay. So that's number two.
[00:05:32] Number three. If you're selling this year, please don't be overly enthusiastic about your price. Don't be so pushy about the high price. I don't care that it's the beginning of the season. It's different this year. Listen, it's different this year, just because it's early in the season, doesn't mean you can start high. And like everybody does. Don't like, oh, well we'll lower later. Don't do that. This is not the year to do that.
[00:05:58] There's too many weird things going on. We're just coming out of all this volatility. We're trying to stabilize. We've got all these interest rate things happening. We've got people more and more people putting their house on the market. If you're selling, don't be pushy with your price. Get the property in the absolute best condition you can for your situation. And I am great at helping people get that list together so that what you're doing matters to the people that are coming through on the showings.
[00:06:25] Okay. So talk to me about that because we don't want you doing things that don't matter to them just because you thought it was important. Okay. So. Don't take that wrong, but let me help you make your list. So it gets a property in the best shape possible. Go in with a mid range price, understand that you're supposed to have showings in the first, like seven to 10 days. You should have shown. Right away. And you should be getting offers in two to four weeks. None of this, like let's wait and see five months from now. No, even in down down market, if your, if your property is priced correctly and is in decent condition, you should be getting showings and offers. This idea of having long, long listings, nope. Even the million dollar properties should be selling, you know, and you should be getting offers in your first 30 days. Okay. I know that's not a popular opinion, but quite frankly, it's just a math problem. You have buyers out there. You have a property that bingo. You should price it in the middle, not high, especially this year. Okay. So that's number three.
[00:07:34] Number four, if you're buying this year than, and I know this is going to be a lot of work, but I really recommend you have a per property strategy. Okay. So. It's it takes more brainwork and it takes more prep, but quite frankly, buyers are the they're the market. So I don't think anybody's going to mind doing this extra work.
[00:08:00] Make sure your agent is onboard with this because they have to hustle a little more, but if you're buying this year, you want a specific strategy for every property you walk into that you think you're going to run. 'cause they're all different. And coming out of volatility, you need to kind of target.
[00:08:15] It's like writing a resume, right? You want it to be specific to the person that you're trying to get the job with. You want your offer to be specific to that person on the other end. And again, if they've been on the market a long time, if they've had a back on market, they've lost a buyer or maybe a couple of times, they keep falling out of escrow, then that can play to your advantage.
[00:08:37] But you want to tailor your offer on a per property basis now. Okay. Don't write the same offer over and over again, just because that's what you're pre-qualified for or whatever, you know, start being a little more strategic because every seller has a different set of life needs, and it's not always about money. So keep that in mind. Sometimes you can offer them things that nobody else can and you get the deal of a lifetime.
[00:09:05] I keep bringing back my millennials that offered to clean the junk out of the yard. I'm getting excited, clean the, the junk out of the yard. At that particular situation was a multiple offer, but it doesn't matter. You can sometimes dangle carrots that don't really cost you much. Or you know No problem for you to accommodate and the seller will just like jump in with gratitude and Gusto and boom, you know, sometimes you can get them to take a lower offer. So think about that. Every property should have a different strategy, tailoring an offer directly to that person on the other side. And I think that's the, that's the key to buying at the end of a volatile market, going into a stabilizing market.
[00:09:54] And, and we're not looking for a ton of reduction in prices. We're looking for stabilizing. That means buyers. It's not going to be going up. So yay. But sellers, that means it's not going to be going up as fast. It's all the same. We're talking about interacting as buyers and sellers in the same market conditions. So number four, if you're buying this year, be specific, be tailored with your offers. Look at if it's vacant or occupied.
[00:10:22] And if you can stand writing offers on tenant occupied properties, there's so many of them, cause nobody wants to be a landlord now in Southern Oregon except for me and like two of my friends, I mean, I'm exaggerating, but the, the tenant occupied properties are problematic for a lot of reasons, mainly all the laws that are involved. But there's also layers of issues with tenant occupied properties. So if you can stand it and you have the time, because sometimes it's like a 90 day process or more, than those are great buyer targets because the landlords may struggle to get those properties sold if the tenant is still in there. And you might get the deal of a lifetime, but you gotta have like a strong stomach. And I go through some sleepless nights, cause there's a lot of uncertainty in those deals, but again, that's what creates opportunity, right? Something that other people don't want then you have an opportunity. But if it's, if you really are going to lose too much sleep, don't, don't do the tenant occupied thing.
[00:11:24] Okay. I just, I want you to be happy and I want you to be successful in your real estate endeavors, but I also like you to know the buffet of choices. Okay. And then you pick and then tell me what you want to do and we'll make it happen. All right. So those are four things to maximize your opportunities with the home price situation in 2022,.
[00:11:42] I am Alice Lema, broker John L. Scott here in Southern Oregon. I'm here to help you sell your house. Here to help you buy property. We do great with rural property, investment property, tenant occupied is one of my specialties. I'm also great with downsizers, first time home buyers. Yeah, whatever you need. I'm here to help. My number is 541-301-7980. That's 541-301-7980 until next week, have a fabulous weekend. Let me know what I can do to help you with your real estate life. We'll see you next time. Bye now.