The November 2021 Homes Sales Report published by Virginia REALTORS® states that Virginia’s inventory of homes is rapidly decreasing.

The report states that at the end of November, there were only 16,242 active listings in Virginia, which is down 25% from this time last year.
Even though inventory has been on the decline, the rate slowed over the summer. However, inventory began disappearing rapidly in October and was not replaced with a flurry of new listings. Conversely, as inventory continues to drop, buyer demand continues to skyrocket. Higher demand equates to higher prices, resulting in a competitive market.

Virginia REALTORS® 2022 President Denise Ramsey says, “Local housing markets across Virginia continue to see strong buyer demand, but very low inventory remains a challenge. It will continue to be a strong seller’s market as we head into 2022.”

To view the full November 2021 Home Sales Report, click here.

2021 was an incredible year for real estate. Inventory sold as fast as it was available and sellers rejoiced at the competitive bidding wars between aggressive buyers. But will 2022 reap the same rewards as 2021? According to the National Association of Realtors Chief Economist Lawrence Yun, 2022 looks to be just as promising as its predecessor. Below are three reasons why he believes that 2022 will be a strong year for real estate.

1. No Housing Crash in Upcoming Months. Throughout the frenzy of 2021 real estate, there was an underlying fear that a crash reminiscent of 2008 would be just around the corner. However, low mortgage rates combined with high demands and strict regulations against subprime lending should keep a housing crash from occurring.
2. Reasonable Increases in Mortgage Rates. Rates are going to increase from record-low levels but by a reasonable amount. The small hike won’t be enough to repel buyers.
3. Assistance for First-Time Buyers. The proposed legislation would provide assistance for first-time homebuyers, such as down payments and potentially provide funding for minority and low-income buyers.

Are you thinking about listing your Smith Mountain Lake property? With buyers anxiously watching listings, there has never been a better time to sell your property. Contact me today to learn how my award-winning process has helped connect buyers and sellers in and around the Smith Mountain Lake area.

Even if you’re not in the market to buy or sell a home, you’ve probably heard about the incredible housing frenzy that has hit the national real estate market, and Smith Mountain Lake is no exception. Homes are flying off of the MLS in record time (sometimes hours!) and owners are getting top dollar (and more!) for their investments.

This is great news if you’re selling your home. High demand and low inventory create a seller’s market. But if you are looking for a home, you might not be so lucky. Sellers are receiving a mountain of offers with prices well above the initial asking price. If you’re not prepared to act fast and offer more, the chances of snagging a dream home are not in your favor.

Are We Headed for a Housing Crisis?

There’s also the underlying concern of housing crash reminiscent of the mid-2000s. As we see housing prices hit record highs, we can’t help but ask ourselves how long this trend will last, and what’s on the other side?

According to Realtor.com, the national median home price went up 17.2% year over year in April, landing at a new record high of $375,000. However, incomes did not increase at the same rate. This begs the question, “How can this market sustain itself?”

Experts believe that a crash similar to 2008 is not in the forecast due partly to the factors that caused that crash in the first place. The Great Recession was caused mostly by bad mortgages, which have largely disappeared from the market thanks in part to regulations. This means that even though buyers are paying over asking price, they’ve been vetted to ensure that they can afford their mortgages. There are also forbearance programs in place to aid those who have hit financial hardship due to Covid-19, which has helped keep a lot of homes from going into foreclosure.

But the current state of the real estate market can’t sustain itself, either. Experts believe that instead of seeing a pendulum swing in the opposite direction where prices crash, we’re going to see prices stabilize and demand taper off.  As the pandemic tapers off and more people return to work, we will see less of a demand for the perfect “work from home” setting to a demand for homes closer to the buyer’s workplace.

What Does This Mean for Smith Mountain Lake Real Estate?

If you’re considering putting your home on the market, now is the time. But be ready to move once your home sells because homes in our area are selling fast. And if you’re in the market to buy, be prepared and be patient.

If you’ve given thought to buying a home in the near future, then one of the first hurdles you’ll have to jump is saving for a down payment. Even though getting pre-approved for a mortgage is important, having 20% of the cost of the home ready in advance will save you money in the long run. And since we’re currently in a seller’s market, being prepared to move quickly on homeownership is a must if you want to snag your dream home before another buyer swoops in and steals it from you.

Below are some tips on how to save for a down payment without stressing yourself out.

Start Now

Unless you downsize your living situation, your monthly living expenses aren’t going to get any cheaper. Start your saving plan now so that you can adjust for living expenses moving forward. 

Create a Clear Plan

A savings plan will help you identify how much you need to save. It will also help you determine areas where you can cut back. Start by setting a downpayment goal, then break that amount down over a period of time that makes sense for your situation. (Tip: be realistic in setting this timeframe. It increases your chances of success.)

Once you have an amount and a period of time to obtain it, then you can drill down how much you need to save per month in order to reach your goal. For example, if you want to save $30,000 over the course of 24 months, then you’ll need to save $1,250 a month to reach your goal. 

Pull Back Your Spending Habits

Now that you know how much you need to save each month, it’s time to have a heart-to-heart with your spending habits to see where you can cut corners. You may be surprised to see how much you’ve been spending on monthly streaming subscriptions, gym memberships, and takeout. Calculate how much you would save by eliminating these expenses and put that money into a savings account.

Consider a Side Hustle

If you have spare time and want to make some extra money, consider getting a side job to bring in extra income. Let family and friends know that you’re available to housesit, babysit, or pet sit. Drive for Uber, Lyft, or Doordash. 

Sell Some of Your Stuff

Chances are, you’ve accumulated a lot of things over the years. Take inventory of your belongings and put some of your extras up for sale.

Set Bonuses and Raises Aside

Instead of increasing your spending habits when you get extra money, put that money into a savings account and continue living your life as if you never received it.

Are you ready to start shopping for your next home? I work with buyers across all price points and will help you find the best house for your lifestyle and budget.