A look at how real estate is doing — May 2022 snapshot
/by Peter Fortner
Guest Sponsor
In 2008, I lost my job. Working for a real estate developer, selling new construction, I was a witness and victim of the financial meltdown that led to the Great Recession. For the prior 6 years, I had watched the madness of the market. People were buying homes off of paper, just floor plans and renderings of what was to be. For the release of new buildings, we had to establish a lottery system (literally numbered balls rolled in a cage) for building releases to keep people from lining up for hours to have the first pick of the units, units that wouldn’t be ready for up to two years. Then, the so-called party ended.
The market is hot again today. Interest rates are in the low 5s (just over 5%) again. That’s still a great rate, in my opinion. The market can be challenging for buyers, due to high demand. But this time around, the demand is not made up of speculators buying in multiples, buyers enticed by teaser rates to purchase something that they cannot afford, or subprime mortgages. Buyers who are looking for their own home to live in are competing with other buyers just like them. This is not 2008. This is qualified, built-up demand for a solid real estate investment, just made a little more challenging by inventory.
A Look at Recent Real Estate Sales for Petworth
I’ve changed the way the data is presented this month, just a little, to give you an idea of what to think about when buying or selling a home. Properly priced and properly listed homes still achieved multiple offers and escalated prices in May 2022 in our area. I’ve taken any concessions (which don’t appear on other real estate websites) out of the Sales Price and then created a new column that shows you the difference between the listed price and the actual sales price, to give you an idea of what to expect when buying or selling a home.
Inflation, gas prices, and rising interest rates have yet to make an effect. As you will see, the market determines the value of the home. If it’s priced too low, you will get a six-figure escalation. When priced just right, or a little too high, the market will tell you so. If you need a strategy to buy or sell a home successfully, contact me. June will be an interesting month and I look forward to sharing those numbers with you. Just remember, there is no National real estate market, there are hundreds of thousands of real estate markets in the US.
Reach out to me at any time for a confidential conversation if you are thinking or buying or selling a home, or if you are just curious about the value of your home or what steps you should take to make a purchase at any time in the future. I am here to help.
