The National Association of Realtors (NAR) will release its latest Existing Home Sales Report tomorrow. The information it contains on home prices may cause some confusion and could even generate some troubling headlines. This all stems from the fact that NAR will report the median sales price, while other home price indices report repeat sales prices. The vast majority of the repeat sales indices show prices are starting to appreciate again. But the median price reported on Thursday may tell a different story. 

Here’s why using the median home price as a gauge of what’s happening with home values isn’t ideal right now. According to the Center for Real Estate Studies at Wichita State University:

“The median sale price measures the ‘middle’ price of homes that sold, meaning that half of the homes sold for a higher price and half sold for less. While this is a good measure of the typical sale price, it is not very useful for measuring home price appreciation because it is affected by the ‘composition’ of homes that have sold.

For example, if more lower-priced homes have sold recently, the median sale price would decline (because the “middle” home is now a lower-priced home), even if the value of each individual home is rising.”

People buy homes based on their monthly mortgage payment, not the price of the house. When mortgage rates go up, they have to buy a less expensive home to keep the monthly expense affordable. More ‘less-expensive’ houses are selling right now, and that’s causing the median price to decline. But that doesn’t mean any single house lost value. 

Even NAR, an organization that reports on median prices, acknowledges there are limitations to what this type of data can show you. NAR explains:

“Changes in the composition of sales can distort median price data.”

For clarification, here’s a simple explanation of median value:

• You have three coins in your pocket. Line them up in ascending value (lowest to highest).
• If you have one nickel and two dimes, the median value of the coins (the middle one) in your pocket is ten cents.
• If you have two nickels and one dime, the median value of the coins in your pocket is now five cents.
• In both cases, a nickel is still worth five cents and a dime is still worth ten cents. The value of each coin didn’t change.

The same thing applies to today’s real estate market.

Bottom Line

Actual home values are going up in most markets. The median value reported tomorrow might tell a different story. For a more in-depth understanding of home price movements, let’s connect. Call/text today at (360) 915-9123.

This month I am sharing some ideas on eco-friendly ways you can enhance and enjoy your outdoor living spaces this summer. I have some tips on environmentally-sound practices to share, as well as ones for maintenance and décor. Need a landscaper recommendation? Call/text (306) 915-9123 or reply to this email today!

The housing market’s been going through a lot of change lately, and there’s been uncertainty surrounding what will happen this spring. You may be wondering if more homes will go on the market, what’s next with home prices and mortgage rates, or what the best advice is for someone in your position right now.

Here’s what industry experts are saying right now about the spring housing market and what it means for you:

Selma Hepp, Chief Economist, CoreLogic:

“We see more competition among buyers . . . Housing supply also tends to grow during the spring months. And this is also the time of year when relatively more migration happens, as people graduate and move elsewhere looking for jobs.”

Greg McBride, Chief Financial Analyst, Bankrate:

“I don’t expect big moves in prices in the span of a month, but like the flower buds of spring, the housing market is showing signs of improvement. A pick up in activity with inventory still low does bode well for home prices.”

Rick Sharga, Founder and CEO, CJ Patrick Company:

“If you can find a home you love and can afford at today’s prices, don’t wait. Home prices in most of the country are unlikely to crash, and mortgage rates will only come down very gradually if they decline at all this year.” 

Jeff Tucker, Senior Economist, Zillow:

“The market is still much friendlier this spring for buyers who can overcome affordability hurdles, but buyers are going to see more competition than they might expect because there are not many homes on the market to go around. New listings are increasing, which they almost always do this time of year, but not nearly as quickly as usual.”

Bottom Line

If you’re thinking about selling your house, this spring’s a great time to do so while inventory is still so low. And if you’re in a good position to buy, lean on your team of expert advisors for the best advice. Whatever your plans, let’s connect to make sure you’re able to navigate the spring housing market with confidence.

As the housing market continues to change, you may be wondering where it’ll go from here. One factor you’re probably thinking about is home prices, which have come down a bit since they peaked last June. And you’ve likely heard something in the news or on social media about a price crash on the horizon. As a result, you may be holding off on buying a home until prices drop significantly. But that’s not the best strategy.

A recent survey from Zonda shows 53% of millennials are still renting right now because they’re waiting for home prices to come down. But here’s the thing: the most recent data shows that home prices appear to have bottomed out and are now on the rise again. Selma Hepp, Chief Economist at CoreLogic, reports:

“U.S. home prices rose by 0.8% in February . . . indicating that prices in most markets have already bottomed out.”

And the latest data from Black Knight shows the same shift. The graph below compares home price trends in November to those in February:

So, should you keep waiting to buy a home until prices come down? If you factor in what the experts are saying, you probably shouldn’t. The data shows prices are increasing in much of the country, not decreasing. And the latest data from the Home Price Expectation Survey indicates that experts project home prices will rise steadily and return to more normal levels of appreciation after 2023. The best way to understand what home values are doing in your area is to work with a local real estate professional who can give you the latest insights and expert advice.

Bottom Line

If you’re waiting to buy a home until prices come down, you may want to reconsider. Let’s connect to make sure you understand what’s happening in our local housing market.

Watch the short video above to find out who the winner is of our Amazon Gift Card drawing!

Interested in a move but dread the honey do list? Let MVP ease the pain! Whether you are buying or selling, we have a special for you! Click here for details and hurry - this offer expires May 31!

We are honored to be nominated for the Best of South Sound. Vote for us now through Friday, April 28 and results will be published Sunday, July 30. Remember to vote early and vote often, because in this contest voters are allowed to submit a ballot once a day. Click here to cast your ballot for MVP!

Featured Property

2 Bed, 2 Bath, Den 
Did you know we go beyond Thurston County? Check out one of our current listing up in Sequim! The next time you have an out-of-town relative looking to make a move, be sure to come check with us; we may service their area. And even if we don't, we are connected to a network of the top 4% of Realtors throughout the US. Give us a call today to learn more. 

Know Someone We Can Help?

Interested in a move but dread the honey do list? Let MVP ease the pain! Whether you are buying or selling, we have a special for you! Call us today for details and hurry - this offer expired May 31, 2023!

Buyers:
MVP will purchase a 1-year home warranty PLUS up to six(6) hours of general handyman services within 30 days of ownership!*

Sellers: 
MVP will provide up to 25 hours of general handyman or cleaning services to help prepare your home for market OR $2,500 brokerage discount!* 

*Subject to qualifying listing or purchase and terms.

There have been a lot of shifts in the housing market recently. Mortgage rates rose dramatically last year, impacting many people’s ability to buy a home. And after several years of rapid price appreciation, home prices finally peaked last summer. These changes led to a rise in headlines saying prices would end up crashing.

Even though we’re no longer seeing the buyer frenzy that drove home values up during the pandemic, prices have been relatively flat at the national level. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), doesn’t expect that to change:

“[H]ome prices will be steady in most parts of the country with a minor change in the national median home price.”

You might think sellers would have to lower prices to attract buyers in today’s market, and that’s part of why some may have been waiting for prices to come crashing down. But there’s another factor at play – low inventory. And according to Yun, that’s limiting just how low prices will go:

“We simply don’t have enough inventory. Will some markets see a price decline? Yes. [But] with the supply not being there, the repeat of a 30 percent price decline is highly, highly unlikely.”

As you can see in the graph below, we’ve been at or near record-low inventory levels for a few years now.

That lack of available homes on the market is putting upward pressure on prices. Bankrate puts it like this:

“This ongoing lack of inventory explains why many buyers still have little choice but to bid up prices. And it also indicates that the supply-and-demand equation simply won’t allow a price crash in the near future.”

If more homes don’t come to the market, a lack of supply will keep prices from crashing, and, according to industry expert Rick Sharga, inventory isn’t likely to rise significantly this year:

“I believe that we’re likely to see low inventory continue to vex the housing market throughout 2023.”

Sellers are under no pressure to move since they have plenty of equity right now. That equity acts as a cushion for homeowners, lowering the chances of distressed sales like foreclosures and short sales. And with many homeowners locked into low mortgage rates, that equity cushion isn’t going anywhere soon.

With so few homes available for sale today, it’s important to work with a trusted real estate agent who understands your local area and can navigate the current market volatility.

Bottom Line

A lot of people expected prices would crash this year thanks to low buyer demand, but that isn’t happening. Why? There aren’t enough homes for sale. If you’re thinking about moving this spring, let’s connect.

So much fun was had over the weekend with the MVP Club! We went out to the Washington Center for the Performing Arts and saw Gabriel Rutledge on March 25 and enjoyed a gut-busting night of laughter together. A big thank you to all those who were able to make it - this is our way of saying, "Thank You!" for all your referrals. Speaking of...

You, too, can get into the MVP Club. This group is made up of our most loyal clients who regularly refer their friends and families to us for all their real estate needs. And in case you need more reasons to refer people to MVP, here's a list of all we do: 

• Buying and Selling, Residential, Commercial, Resale or New
• Property Valuations and Condition Assessments
• Estate and Divorce Sales
• 1031 Exchanges
• Short Sale Lender Negotiations
• Repairs, Improvements, and Rehab Programs
• Cash Out Sale Opportunities
• Rental Management
• Mortgage Planning and Payoff
• Financial and Investment Planning
• Home Maintenance
• Troubleshooting
• Serving Thurston, Pierce, Lewis, Mason, Grays Harbor Counties and More
• Referrals to the Top 5% of Brokers in ANY City or State

Just give us a call or text at (360) 915-9123 and let us know how we can orchestrate an introduction. We look forward to being of service to you or someone you care about very soon

Watch the short video above from our CEO and Designated Broker, Matthew Plummer!

With 90% of our business coming from referrals, we really appreciate all you do to talk us up to your friends and family. That other 10% includes people who read reviews online. Write us a review on Google during the month of March and we'll enter your name in a drawing for a $25 Amazon Gift Card. That's it - no strings attached! Click here to get started, and we'll announce the winner in next month's eNews. 

Buyers are getting to take their time deciding on a home with the average days a home is on the market increasing (49 days vs 16 days a year ago). Homeowners also seem to be staying put at the moment, allowing for Sellers to have an advantage, too. With this low inventory, we'd expect to see homes flying off the shelf; but the average days on market are telling a different story. Here at MVP Realty Group, our listings are taking a third of the time of others to sell. If you're looking to make a move, give us a call to make sure your home will sell and you get to buy when it's best for you. 

Featured Property: 6919 Radius Lp SE, Lacey

There's something special happening at MVP - the stats above still show the average house is staying listed for 49 days before getting under contract. We haven't seen that happen yet! Our listing on Radius Lp in Lacey is no exception. This home was listed for 4 days before it was snapped up with multiple, competitive offers. Explore more about this property by clicking here...

Know Someone We Can Help?

What A Success! 

Many amazing providers who serve our clients at MVP came together last week to meet one another, several for the first time. Our vendors enjoyed some beverages and nibbles, mingling, exchanging information, and a lucky few received a door prize! We had such a great time and are grateful for all those who were able to make it. We look forward to the next time we can all get together!

If you're interested in being a part of the network of businesses who work with our MVP Community, reach out to us! We'd love to hear about your business; email Matthew@MVPRealtyGroup.com, or give us a call at (360) 915-9123 today!

Left to Right: Trish Delph, Senior Property Manager; Marti Baker, Executive Assistant; Valerie Plummer, CFO and Owner; Matthew Plummer, CEO and Owner