SunCrest Midyear Market Update
The first six months of 2022 are behind us. We’ve been highlighting changes along the way, but here are 4 things you need to know about the SunCrest real estate market right now.

Home Affordability is a Rising Challenge
With nearly 45M Americans between the ages of 25 and 34 now aspiring to buy a home, home ownership simply isn’t attainable for many. Massive home price appreciation combined with rising interest rates are putting a “starter home” out of reach for many. Expect to see city leaders grapple with more creative (and affordable) higher-density projects such as townhomes, multiplexes, and live-work buildings as they grapple with addressing smart, sustainable, and affordable growth.

Home Price Appreciation is Slowing
If you’re in the market to buy this year, don’t expect a drop in prices. Why? Supply and demand. Even with more homes coming to the SunCrest market, we are still in a housing shortage. It’s not just about the total number of homes, but the type of homes that are available. After the crash in the 2000’s, home builders have built less entry-level homes, which is where most of the demand exists now that Millenials make up the largest group of homebuyers. Starter homes remain in high demand, so prices are still holding strong.

Inventory is Increasing, But it’s Still Very Low
Even though the market is shifting to have a little more balance between the number of homes for sale and the number of buyers who want them, the real estate market is still tremendously active and we’re still well below what many economists consider a “balanced market.” Today, SunCrest stands just under a 2 month supply of homes for sale. In other words, this means that if not one more home was listed for sale, it would only take 2 months to sell out of what’s listed. A more balanced inventory would be 4-6 months.

Price it Right
We’re seeing sellers get less than their original asking price—in some cases by 20%. In other words, they overshot the market and had to decrease their price in order to sell. This is a stark difference compared to the highly competitive market we’ve seen over the past few years, where stacks of offers came in far above asking price. While these homes still sold for a tidy profit, there can be huge risk in setting your original sales price too high. If you’re hiring a real estate agent, work with an experienced and knowledgeable one to set the price right the first time. Bottom line: Price it right and when you do so, most homes are still selling quickly.

Our Take
There’s no shortage of opinions on social media: “Buy now! Don’t sell! Wait for rates to come back down! The market is crashing. The market is just taking off!” We see it too, and it can all be a bit confusing to follow. For the best advice, reach out and work with an experienced agent. People love this neighborhood and demand for homes in SunCrest remains strong even as housing supply catches up and price appreciation settles. We’d love to help you make all the right moves when buying or selling in this new, but not uncharted market.

What is the Hottest Word In Real Estate Right Now?
We’re hearing one particular word a lot right now: shift. Just like “pivot” “the new normal” and “pre-COVID” were big buzzwords, we’re getting asked about the market shift a lot right now. Here are three shifts we’ve got our eyes on.

Shifting Expectations
For much of 2020 and 2021, it was not uncommon to put your house on the market and have multiple offers in the first few days. Some buyers would line up at the doors of an open house and make an offer in the first few hours, often above the asking price. That kind of toilet paper-esque craze was not normal then, and it’s not nearly as prevalent today. While sellers can expect their home to be on the market a little longer, it’s only a slight so far in 2022, with homes staying on the market an average fo 13 days versus just 9 in the same period in 2021.

Shifting Inventory
In real estate, we talk about a “balanced market,” which basically means there are enough buyers, and enough homes for sale. Many real estate economists will tell you a healthy real estate market is when we have a 4-6 month supply of homes given the amount of buyers. In other words, if not one more house went up for sale starting tomorrow, it would take 4-6 months to sell all the homes already on the market. Today, SunCrest stands at a 1.25 month supply. We’re watching this number very closely to see if the inventory starts to shift.

Shifting Affordability
Earlier this year, we took a deep dive in at what impact the shift in interest rates is having. In our example, we used a sales price of $750,000 and found that buyers would pay more due to higher interest rates – $406 more a month – versus what they would have paid with 2021’s rates. Interest rates were never intended to remain at those historical low levels from last year. The biggest shift we’re seeing as a result is that buyers who are in the market now have shifted their expectations and taken into acount how new interest rates impact which homes are affordable.

Our Take
Rewind to ten years ago when homeowners were facing foreclosures, there were lots of “short sales” (homes selling for less than what was owed on them), and many felt it was a crazy time to sell. Today, it’s a total shift and we hear a lot of people say it’s a crazy time to buy. One thing is constant: the market will always shift. The shifting market currently is welcoming back buyers from last year who were turned off from the intense competition as competition and prices stabilize. For sellers, current inventory levels remain at their lowest levels on record and as affordability tightens with rising interest rates, so they’re shifting their selling tactics from instant money to longer-term appreciation calculations. With all these shifting pieces, we think sitting down, reviewing all the facts, and walking through your goals and timing will help best prepare you for your next move.

Quarter 1 Review and an Update on Interest Rates
The first quarter of 2022 is in the books! So far, things look quite different than they did a year ago. In the first three months of 2022, 21 SunCrest homes were listed and 16 sold. Compare that to the same time period in 2021 when we saw 60 SunCrest home listed and 30 sold. Buyers are still feeling like there is a shortage of available homes to see and ultimately buy. This has led to double digit percentage price appreciation and in many cases, multiple offers for sellers with many homes selling above a seller’s asking price. So far in April, we’re seeing an anticipated seasonal increase in the number of homes coming to the market, which has been welcomed by eager home buyers.

Interest Rates
Recently, we discussed some reasons why rates are rising. This month we wanted to explore what impact the recent rise in interest rates is having on buyers. For the sake of illustration, we ran a hypothetical scenario of a home buyer purchasing a $750,000 home using the average interest rate in the first quarter of 2021, and then that same buyer purchasing that home in the first quarter of this year. As you can see, a buyer would expect to pay $406.91 per month more now, versus in 2021, due to the rise in rates. Of course this is a very simplistic way to look at it, and it does not take into account things like debt payments, or home appreciation, but we think that it demonstrates the impact of interest rates on a mortgage payment. Interest rates were never intended to remain at those historical low levels from last year, so those in the market will need to adjust to the fact that rates are indeed trending higher.

Our Take
The SunCrest real estate market is fluid and changing. March, and so far April, have brought some much needed inventory and we’re off to a steady start to 2022. For sellers, we’re monitoring what impact the rise in rates are having on home sales and price growth. For those who are looking to buy, the recent rise in rates have impacted monthly payments and we’re not seeing any signs that rates will be coming down in the near term. If you’re in the market to buy or sell, working with an agent who is keenly aware of the most accurate and up to date information can help you prepare the best plan for your needs.

Rates, Russia, and the Spring Market
It’s been an interesting start to the year so far, and a lot of people have asked about a few headlines and how they affect the real estate market. We’ve picked three of the most common: Interest rates, Russia, and the spring housing market.

Rates
Over the first 8 weeks of 2022, interest rates shot up about 1%. Why? It’s always nice to have a culprit and we can look at the Federal Reserve. It’s a chain reaction that kind of goes like this: The Fed has been buying a lot of mortgage backed securities, but at the end of 2021 they announced they were going to slow down. In turn, people who sell bonds raised the rates of bond offerings, and that led to mortgage lenders raising their rates. The last part of that chain reaction is that mortgages housed within mortgage backed securities had their rates go up, which finally caused the rates offered to the public to go up.

Russia
Historically, anytime we see a global disruption or geopolitical event, investors turn to safer investments. Think: people sell their stocks and invest in safer bonds. Interest rates may not rise as much as originally anticipated at the start of the year but we dont believe rates will decrease because of the Russian invasion of Ukraine. The more immediate picture is that the rising costs of oil coupled with inflation are likely to have a bigger impact on home buyers due the direct impact on their wallets.

Spring Market
As predictable as snow melting and flowers blooming, Spring brings out more home sellers. We’ve already seen the early stages of this with more homes listed in the first two weeks of March versus the previous two months combined. We anticipate the second quarter of the year to be the most active listing period of the year as snow melts and home sellers and buyers look to make a move ahead of the next school year.

Our Take
Like gardens sprouting, Spring brings a flurry of activity to the SunCrest real estate market. This Spring, we anticipate we’ll see more houses for sale just like we have in the past, despite the small shift in interest rates and global situation. We’ll also keep an eye on any new economic developments to see what’s in store later on this summer.

2021 SunCrest Real Estate Year In Review
It’s time for our annual “Year in Review” where we look at the past year in SunCrestReal Estate. The year 2021can be summed up in two words: record breaking. Home price appreciation saw 26% year over year increase, over 200 real estate sales took place, and the new median price of a home in SunCrest climbed to $715,000 – all records for the SunCrest housing market.

Before diving into the data, however, we want to pause to say thanks. Last year certainly had its challenges, but we feel pretty darn lucky to be a part of the SunCrestcommunity and go through it together. Thanks for all your kind emails, comments on social media, friendly waves, generosity in our giving campaigns, and for all the inspiration around what it means to live the SunCrest Lifestyle.

2021 By The Numbers
Total SunCrest Properties Sold: 209
Properties: 112 Existing homes, 65 New homes, 16 vacant lots
Highest Sold Price: $1,850,000
Lowest Sold Price: $341,500
Median Sales Price: $715,000
Most Active Sales Period: 4th Quarter – 68 Closed transactions
Median Sales Time: 20 Days

Year-Over-Year Sales Price: 26% increase

The “Average” SunCrest Home Sold in 2021
We crunched the numbers. If you could put together an overall average of all SunCrest homes sold in 2021, here’s what that house would look like:

Built in 2010
4.29 bedrooms
3.36 bathrooms
2.56 car garage
.23 acres
Price – $763,985
$202 square foot
53% finished basement
20.2 days average time to sell

Our Take
Outside of a robust labor market and low interest rates, consumers have been fueled by flexible, pandemic-inspired work dynamics. Buyers and sellers can more easily decide where to live based on their jobs, schools, convenience, and local policy. More and more, people can now live somewhere they truly love. This great migration in real estate means the secret of SunCrest is out. Our lifestyle, flexibility and a diverse neighborhood is a hot commodity that few neighborhoods can provide. When it comes to buying and selling in SunCrest, that means it’s never been more important to know the market and get it right. Having a hyperlocal expert in your corner who has their finger on the pulse of this community can make a bigger difference now than ever before.