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.