Open Houses vs. Digital Tours: Why Both Matter in 2024

When it comes to selling your home, one of the biggest questions sellers have is: "Do open houses still work?"  With so many digital tools available, from virtual tours to high-resolution photos, it might seem like open houses are a thing of the past. But in 2024, we’re seeing a comeback. If you’re thinking of selling your home, here’s why open houses might still be one of your best strategies—especially with buyer demand and seller activity on the rise. Open Houses Making a Comeback According to the latest Zillow Consumer Housing Trends Report, 65% of sellers in 2024 hosted between 1-3 open houses, up from 49% in 2018 and 44% in 2021. In fact, the median seller now hosts two open houses, up from just one in prior years. This trend signals that buyers are still craving the in-person experience of walking through a home before making a decision. But why the shift? In 2021-2022, properties were selling so quickly that open houses slowed. Now that the market has settled a bit, home sellers need a comprehensive strategy to attract buyers.  Open houses allow potential buyers to tour the property without pressure. This is especially helpful for buyers who have not yet signed a buyer broker agreement, which is a new requirement in the industry. Plus, open houses can create a sense of urgency. When potential buyers see other interested parties walking through the property, it taps into their competitive nature.  Buyer Demand on the Rise Adding fuel to the open house resurgence is the fact that buyer demand has started to pick up in recent weeks. September 2024 marked the first time in nine months that pending home sales didn’t decline, signaling a turning point in the market. Mortgage rates have dropped More Options Fall Opportunities for Buyers to their lowest levels in two years, which has made homeownership more accessible for buyers. For instance, the average 30-year mortgage rate recently fell to 6.08%, reducing monthly payments for the typical buyer by 5.9% compared to last year. More home tours are happening as well. Redfin’s Homebuyer Demand Index, which tracks home tours and related activities, rose by 9% month-over-month in September 2024, reaching its highest level since April. This increase in demand is making open houses more valuable, providing the in-person touch that buyers need to solidify their decisions. More Sellers Are Listing Homes Not only were buyers more active in September, but sellers are stepping up as well. Newly listed homes increased by 11.6% in September 2024 compared to the previous year, marking the highest level of seller activity since 2021. In addition, total inventory levels grew by 34% year-over-year, making it the 11th consecutive month of growth. This rise in listings is driven by falling mortgage rates, which have encouraged more homeowners to sell their homes . With more homes on the market, buyers have a wider range of options. However, this also means more competition for sellers. Hosting an open house can help your property stand out in a crowded market. It allows buyers to experience the home firsthand, which can be a deciding factor when they’re comparing multiple listings. The Power of First Impressions One key reason open houses are so effective is the power of first impressions. Of course, digital tools are still essential to catch the attention of those searching online. High-resolution photography, interactive floor plans, and virtual tours provide a comprehensive digital experience for buyers.  Combining these tools with an open house gives buyers the best of both worlds. They can browse online, then come experience the home in person, creating a deeper connection that often leads to faster sales. If you’re planning to sell, hosting at least one open house is one part of an effective marketing strategy. With more buyers hitting the market in 2024, and sellers listing homes at the highest rate in three years, getting as many eyes on the property as possible is critical. Open houses allow you to showcase your home to engaged, motivated buyers who are ready to take the next step.

Lower Rates, More Options: Fall Opportunities for Buyers

The past few years have been tough for buyers. And if you think back to before the pandemic, you’ll likely remember hearing that spring was always the ideal time to buy a home. After all, that’s when the majority of homeowners list their homes for sale, and more homes on the market means more options for buyers.  This fall, however, marketing conditions are aligning in favor of homebuyers in many markets, creating a unique window that hasn’t happened in recent years. Realtor.com even named September 29 - October 5 the best week to buy a home in 2024.  "This year buyers who are looking for that optimum mix of ample options and the potential to save on list price are going to find some of the best market dynamics in years during the first week of October," said Danielle Hale, chief economist, Realtor.com®. So, what makes this season stand out?  Let's break down the data below.  #1—Lower Mortgage Rates After months of steady climbs, mortgage rates have recently dipped to their lowest levels since February 2023, falling to 6.11% on September 11.  This decline offers buyers a chance to lock in more favorable rates and save substantially on their monthly payments. For instance, the monthly payment on a typical home purchase has decreased by over $100 since peaking in May, according to Zillow.  But here’s the catch: mortgage rates are unpredictable. While they’re lower now, they could rise again without warning. Acting now could mean the difference between getting a great deal and missing out.  #2—Peak Inventory Levels If you’ve been holding out for more options, your patience has paid off. In August, the number of homes for sale increased by 22.1% compared to the same time last year. And, Realtor.com reports that the first week of October will likely feature 37% more active listings than at the start of the year, offering the widest selection for buyers. "Unlike the past few years, we are seeing ample for-sale inventory which could soak up any late-season demand in many markets, making the fall a great time to buy even if falling mortgage rates amp up more demand than is typical," said Hale. More inventory means more choices — and more opportunities to find the perfect home. It also means less pressure to make a snap decision, allowing you the time to thoroughly consider your options without worrying about losing out to another buyer. In Salt Lake County, housing inventory trends differ from national trends. In August, we saw a only 11.6% increase in inventory. This puts the Salt Lake area at only 72% of seasonal averages, with sales activity up 9% over last year.  #3—Less Competition Means More Negotiating Power Spring and summer are traditionally hot buying seasons, with a typical cooling in fall and winter. Buyer demand is expected to drop by nearly 30% compared to the spring peak. This reduction in competition could give you a leg up in negotiations, whether that means offering below the asking price or asking the seller to cover some of your closing costs. #4—Price Reductions are More Common In a market with more inventory and less competition, sellers are often more motivated to make deals happen. In August, 25.9% of listings experienced price cuts nationwide, compared to 23.4% a year ago. If you’ve been frustrated by inflated prices, you might find more opportunities to negotiate a lower price or snag a deal on a home that has been sitting on the market. In addition, Redfin reports that the number of homes sold above their list price has also dropped, from 33% last year to just 27.9% in the four weeks ending September 8. In practical terms, this means that sellers are more willing to negotiate, giving you the opportunity to buy a home for less than you might have expected. Seasonal Trends for Homebuyers While fall is typically seen as a slower season for real estate, it can actually be a strategic time to buy. Many sellers want to close deals before the holiday season, making them more motivated to negotiate. That’s part of the reason why Realtor.com identified the week of September 29 – October 5 as the best week to buy a home this year (along with the reasons above!).  If you’re thinking about buying a home, waiting until spring could mean higher rates, fewer options, and stiffer competition. This fall is offering a rare combination of lower mortgage rates, more inventory, reduced competition, and increased negotiating power. If you’re interested in learning more about your options, reach out here for a discovery call.

Home Prices and Presidential Elections: What You Need to Know

No matter how many elections you’ve lived through, each one can feel a bit like a wildcard when November draws near and you’re wondering whether you should make a move—or wait until the dust settles.  Generally speaking, presidential elections have only a small and temporary impact on the housing market. That said, it’s natural to be curious as to how an election could impact your decision to buy or sell a home this year.   So, here’s a quick rundown of what you can expect from this year’s election, based on what has happened in election years past.  How do Elections Impact the Housing Market? Home Sales For the past several election years, November has typically brought a slight slowdown in U.S.  home sales. Ali Wolf, Chief Economist at Zonda, confirms that while home sales are generally unchanged during an election year, November is slower than normal.  That temporary downtick is mainly due to people feeling uncertain and hesitant about making a big decision (like buying or selling a home) when they perceive an election’s outcome could have a real impact on their financial situations or where they want to live next.  It’s a pivotal time. It’s also short-lived. Home sales generally bounce back in December and continue to climb the following year.  In fact, according to data from the Department of Housing and Urban Development (HUD) and the National Association of Realtors® (NAR), after nine of the last 11 Presidential elections, home sales increased the following year.  Home Prices According to Bankrate, home price appreciation during past election years has outpaced that of the surrounding non-election years.  A Bankrate analysis of Case-Shiller data shows home prices rose an average of 4.84% in the nine election years we’ve had since 1987, compared to an average 4.44% in the 28 non-election years.  Based on that, you might think presidential elections are good for the housing market. The reality is a bit more complicated.  Home price appreciation by year from 1987 to 2023 (election years in bold font): 1987:  7.22% 1988:  7.23% 1989:  4.39% 1990: -0.69% 1991: -0.17% 1992:  0.82% 1993: 2.16% 1994: 2.52% 1995: 1.79% 1996: 2.43% 1997: 4.02% 1998: 6.44% 1999: 7.68% 2000: 9.29% 2001: 6.68% 2002: 9.56% 2003: 9.82% 2004: 13.64% 2005: 13.51% 2006: 1.73% 2007: -5.40% 2008: -12.00% 2009: -3.85% 2010: -4.11% 2011: -3.88% 2012: 6.44% 2013: 10.71% 2014: 4.51% 2015: 5.20% 2016: 5.31% 2017: 6.21% 2018: 4.52% 2019: 3.68% 2020: 10.43% 2021: 18.87% 2022: 5.65% 2023: 5.56% In recent decades, the worst election year by far for the U.S. housing market was 2008. Home values that year plunged 12% as the historic housing bubble of 2004–2007 finally burst. The housing market crash had nothing to do with the tension surrounding the election. It was all thanks to horrendous economic timing. The global economy was collapsing. The silver lining was the suddenly gigantic room for improvement.  Granted, this is the one election year in the past few decades when home price appreciation was actually down from the previous year (from -5.40% to -12.00%).  The best year for home price growth since 1987 was 2021, when home values skyrocketed 18.9% amid record-low mortgage rates during the pandemic housing boom. Again, the extreme housing market conditions that year had nothing to do with a new president taking office.  Mortgage Rates Mortgage rates are a big deal because they determine how big your monthly payment will be when you buy a home. So, it’s natural to want to know whether these rates tend to go up or down during an election year—or what you can expect with rates before and after an election.  Based on data from Freddie Mac, mortgage rates have declined from July to November in eight of the past 11 presidential elections.  Moving on to the aftermath of this year’s election, most housing market forecasts show mortgage rates easing slightly throughout the remainder of 2024 and into 2025. Assuming they’re correct, this year will continue the trend of declining interest rates leading up to the election—and keep rates on a downward trend in the months to follow.  Lower rates can translate into lower monthly payments. But lower rates also mean more buyers are likely to enter the market.  That means buyers who wait for rates to fall below 6% will likely encounter fierce competition for available homes, driving up home prices and all but eliminating concessions that could make the home more affordable.  Final Thoughts While presidential candidates often hype up the economic plans they have for their first year in office, economists tend to agree they have little to no influence over the housing sector. Doesn’t mean they won’t try to convince you otherwise.   The housing market may seem confusing right now (even if you’re not sweating the election), but with the right information and a focus on local data, you can navigate it confidently.  For an even more personalized data report for your home or neighborhood, reach out to me here. ( https://www.fullerliving.group/contact ) 

Why 89% of Homebuyers and Sellers Choose to Work with Real Estate Agents

Let’s get real. Do you have to use a real estate agent when buying or selling a home?  The answer, of course, is no. You can absolutely go it alone, and there are people who opt to do so every year.  After all, with the internet at your fingertips, you can search for homes, look up property values, and even negotiate deals on your own.  Yet, even with all that info, 89% of people choose to work with a professional, according to a report from the National Association of Realtors.  There’s been a lot of attention on real estate industry changes https://www.fullerliving.group/blog lately. But today, I want to go back to the basics and discuss the difference between a buyer’s agent and a seller’s agent—and what each can do for you during your real estate transaction.  Buyer’s Agents Sites like Zillow can help you find your dream home by browsing listings online, and they even alert you to open house schedules. These sites can also connect you with a local real estate professional if you are not already working with one.   A buyer’s agent goes beyond the vast amount of information online and acts as your personal guide throughout the entire home buying process. Think of them as your real estate advocate, someone who is entirely focused on your needs and interests.  Realtor.com compiled 111 things buyer’s agents do throughout the real estate transaction, but here, we’ll just focus on some of the key elements of their work: Finding the Perfect Home Like I noted above, you can search for homes online, but can you really spot the difference between a house that’s priced to sell and one that’s hiding a laundry list of issues?  According to the 2023 Profile of Home Buyers and Sellers, 89% of buyers used an agent to purchase their home, with 50% citing that the most valuable service was helping them find the right property. Your agent will use their knowledge of the local market to help you find properties that match your criteria. They’ll schedule showings, provide insights, and help you weigh the pros and cons of each home. Negotiating Price and Terms  You might think you can haggle your way to a better deal, but without an agent, you’re missing out on the subtle art of negotiation. Keep in mind that negotiations can happen at different points throughout the transaction, such as getting an offer accepted and after inspection and appraisals are complete. The NAR report highlights that agents are essential in negotiating better contract terms and handling the complexities of the sale. A good buyer’s agent knows how to sweeten the deal in ways you might not even consider—like securing repairs or getting the seller to cover closing costs. Navigating Paperwork The paperwork involved in buying a home can be a maze of legalese. This can be overwhelming for many. That’s why 90% of buyers found their agent to be a useful information source throughout the process, ensuring every “i” is dotted and every “t” is crossed. Seller’s Agents On the other side of the deal, a seller’s agent (also known as a listing agent) is dedicated to helping homeowners sell their property quickly and at the best price possible. They’re the ones who market your home, negotiate with buyers and handle the logistics of the sale.  Let’s take a look at some of the key responsibilities of a listing agent.  Pricing the Home Correctly Pricing your home is part data and part art. Get it wrong, and you could scare off buyers or leave money on the table. The right price attracts serious buyers and maximizes your profit. Over the past few years, properties were flying off the market in a matter of days. Yet, even then, for sale by owner (FSBO) homes sold for significantly less than agent-assisted homes. In 2022, FSBOs sold for a median price of $310,000 compared to a median price $405,000 of agent-assisted homes, according to NAR. Seller’s agents use data, experience, and market insight to price your home strategically—something an online calculator just can’t replicate. Marketing the Property A seller’s agent will create a comprehensive marketing plan to showcase your home to attract serious buyers, not just window shoppers. This includes professional photos, videos, an online social plan, open houses, and sometimes even staging the home to make it more appealing to buyers. Interested in learning about our marketing plan? Check it out here.https://www.fullerliving.group/contact Handling Offers and Negotiations Without an agent, you’re the one fielding offers, counter-offers, and everything in between. It sounds empowering until you’re faced with a buyer who’s playing hardball. That’s why 87% of sellers said they would definitely or probably recommend their agent for future services. A seller’s agent handles the back-and-forth, ensuring you don’t cave under pressure or get taken for a ride. In addition, they manage the entire sale process beyond getting an offer accepted—from coordination of inspectors and appraisers to getting to the closing table on time.  Final Thoughts It’s tempting to think you can save money on commissions without an agent. But when buying or selling a property, the stakes are high. A skilled real estate agent isn’t just another expense; they bring a level of expertise and market knowledge that can save you time, stress, and money. And that’s an investment that can make all the difference.