Seller Market

2025 Economic Expert

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A word from your Silver Elk Realty Team: The real estate industry has dealt with unprecedented change and is shifting fast. Partnering with Silver Elk Realty means staying ahead of the curve, it means more than just knowing what’s happening—it’s about leveraging the right strategies to thrive.

For the past 16 years our coach, Brian Buffini, has successfully forecast the future of the market year after year.  He is the premier real estate coach in the nation and Silver Elk Realty has remained connected with him since 2015, so we can bring you the most informative intel to guide you home and grow your wealth.

Watch the broadcast on-demand to gain the actionable insights we are using to navigate the evolving real estate market in 2025. In this video Dr. Lawrence Yun, the national chief economist for NAR will provide insights on things like:

  1. What factors are driving changes in housing needs
  2. What’s holding most homeowners back from making a move
  3. Interest Rate projections for 2025
  4. What drives high interest rates
  5. 2025 Housing forecast and beyond

Silver Elk Realty Commentary

Pent up demand will soon drive a tidal wave of new home buyers into the market. A significant number of future home buyers have been sitting on the fence waiting for interest rates to come back down to 3.5% but unfortunately, there is no basis for this thinking – there isn’t a single economist out there who will tell you rates will ever come back down to those historical lows. Most economist are predicting rates between 5.75% – 6% over the next couple of years. At some point, what’s going to happen is that, all of these folks who’ve been sitting and waiting won’t be able to wait any longer, and when they see rates drop to 5.7% – 5.9% will jump back in and reignite the bidding wars we saw from 2019 – 2022.

With that will come many challenges for buyers and sellers:

1. Buyers will have fewer homes to choose from and a lot of competition, resulting in more multiple offer situations for prime housing.

2. Sellers will have plenty of buyer offers to choose from, but will, at the same time, find themselves in the buyer pool which will make buying and selling at the same time challenging.

A different way of seeing things:

There’s an old saying in financial circles, “rent the rate”. This means that instead of waiting until the perfect scenario presents itself, you take what the market will give you now, and buy down later. In the real estate world this is referring to interest rates, and the cost of borrowing money to purchase a home.

If you were a home buyer in the last 6 years you know what we’re talking about. When interest rates were low – everybody was buying. Many missed out of some great homes because there were more shoppers than houses they could afford- what we refer to as inventory. Just like when the weatherman calls for icy weather, everyone runs to the store and buys up all the toilet paper, I digress. Likewise, when the cost of money (interest rates) are low, everybody wants to make a move, gobbling up all the available homes. When this happens, the price of housing will go up as the amount of inventory goes down.

So how do we get what we want and not pay an arm and a leg for it? A Paradigm shift! Think differently! One thing is sure, housing prices will continue to rise regardless of the interest rate – again, this is one of the driving forces behind owning versus renting. If you have to borrow money to buy a home then it-is-what-it-is, do what you need to do now, and over the long run you’ll be glad you did.

So if you want to buy a home, whether you currently own a home or not, consider this: Find a home that fits your families needs perfectly, and if its priced reasonably for the times we’re in, buy it! Get the best possible rate you can find, make room for it in your monthly budget, and when rates come down – refinance.

On a personal note, I want to encourage you to make decisions using sound wisdom, considering all the facts and taking into account all the available information from trusted sources. Don’t allow fearmongering to cloud good sensical judgement. If you feel anxious, worried or even fear when thinking about all of this, it’s time to seek out good council. Remember, not making a decision can be just as bad as making the wrong decision

Contact Silver Elk Realty today to get your community specific information

Gorden McLaugghlin

Search For Your Next Home Here

Homes For Sale Fort Worth

New Year, New Home? Set Homeownership Goals Whether You’re Buying, Selling, or Staying Put

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The start of a new year always compels people to take a fresh look at their goals, from health and career to relationships and finance. But with historically low mortgage rates, increased home sales and price growth, and a tight housing inventory, the time is right to also make some homeownership resolutions for 2021.

Home buyers, is this the year you work to improve your credit score, pay down some debt, or save for a down payment?

Home sellers, we’ve laid out plans for you to get top dollar for your property, including timing your home sale, making your property stand out from the crowd, and investing in your extra living space.

And even if you’re staying put for awhile, homeowners, you can resolve to improve your status quo by evaluating your home budget, finalizing your home maintenance schedule, or maybe investing in a second property.

So no matter your homeownership status, we’ve got some ideas and advice for you to make this year your best one yet. Read on to learn more.

HOME BUYERS

Resolution #1: Qualify for a better mortgage with a higher credit score.

Your credit report highlights your current debt, bill-paying history, and other key financial information. Importantly for your home-buying journey, it is also used by lenders and companies to calculate your credit score, which partly determines if you are qualified to obtain a mortgage. Therefore, before you start house-hunting, make sure your finances are in the best possible shape by checking your credit report from Equifax, Experian, and TransUnion (via AnnualCreditReport.com). You can also obtain your credit score for free from some banks and credit card companies.

Your credit score will be a number ranging from 300-850.1 Generally speaking, a credit score of 740 or higher is considered very good to excellent.2 If your FICO score drops below 740, you might need to work at boosting your score for a few months before you begin house-hunting. Ways to do this are to pay your bills on time every month, keep your credit card balances low, and avoid applying for new credit.

Resolution #2: Improve your credit health by paying down debt.

Do you have student loans, credit card debt, or car payments tying up your income each month? That debt is hurting your “buying power,” or the amount of home you can afford. Not only is it money that you can’t spend on your new home, but your debt-to-income ratio also affects your credit score, which we discussed above. The less debt you have, the higher your FICO score and the better mortgage you can obtain.

If you can, pay off some debt in its entirety—like a low balance on a credit card. Then apply that “extra” money you previously paid on that credit card to pay off bigger debt, like a car loan. Even if you can’t pay off all (or any) of your debt in full, reducing the balances of each account will help you qualify for the best possible mortgage terms.

Resolution #3: Create a financial safety net before applying for a mortgage.

Don’t forget that buying a home requires some cash as well. A down payment is typically 7% of a home’s purchase price, and closing costs currently average $3,700.3,4 (You may qualify for 3.5% downpayment, or first time home buyer grants that cover 100% if you stay put for 3-5 years: contact us to learn to find out and set a realistic goal!)

You’ll also need money for moving expenses and any initial maintenance tasks that might pop up. And as the pandemic taught us, you never know when an unforeseen event might cause a job loss, drop in income, or health scare, so having some liquid savings will ensure that you can still pay your mortgage if a crisis occurs.

Dedicate some effort to building up your reserves. Cut down on unnecessary expenses, and consider having a portion of each paycheck automatically deposited into your savings account to avoid the temptation to spend it.

HOME SELLERS

Resolution #4: Decide on the right time to sell your home.

If you’re looking to maximize profit on the sale of your home, selling earlier in the year makes sense. Listing prices historically increase early in the year, peak in May, plateau through June, and decrease for the remainder of the year.5 And, according to the National Association of Realtors, “[w]ith both mortgage rates and the number of homes available for sale expected to remain relatively low, home prices are likely to continue to increase. [In] mid-January, home prices typically begin a quick ramp-up in a normal year.”5.  

In January 2021 the number of active listings are down nearly 43.4% in Dallas-Fort Wort, yet sales are up 17.6%… it’s an official sellers market with only 1.6 months of “inventory options” for buyers to choose from.

But sales price isn’t the only thing to consider. You might not be ready to sell your home yet because you don’t want to uproot your kids during the school year or because you need to tackle some minor upgrades before placing your home on the market.

This means that there is no one month or season that is the perfect time to sell your home. Instead, the right timeline for you takes into account factors such as when you’ll earn the highest profit, personal convenience, and whether your home is even ready to put on the market. As trusted real estate professionals, we can guide you through your specific needs to clarify when to sell your home.

Resolution #5: Boost your home’s resale value by making your property shine.

Housing inventory is at historic lows across the country, and that means the market is fiercely competitive.6 Selling your home in 2021 has the potential to net you a huge return right now, and you can maximize that amount with some simple fixes to make sure your property outshines your neighbors’ for sale down the street.

In your home, you might need to tackle a minor remodeling project, such as upgrading the flooring or adding a fresh coat of paint. According to the National Association of Realtors’ 2019 Remodeling Impact Report, simply refinishing existing hardwood floors recoups 100% of the cost at resale, and completely replacing it with new wood flooring recovers 106% of costs.7

Outside, you might consider improving your curb appeal by removing a dead bush, trimming a tree that blocks the front window, or power-washing your moldy driveway and sidewalks. In fact, real estate agents say cleaning the exterior of your house can add $10,000 to $15,000 to a home’s sale price.8. We can attest, it will certainly sell faster when properly prepared to give buyers a reason to bid with confidence and lower risk of hidden concerns.  By the way: according to a Virginia Tech study, improving a home’s landscaping may increase its value by 10 to 12%.9

A good agent should provide custom-tailored suggestions to ensure your property pops inside and out. Ask us about our local insider secrets that will make your home stand out from others on the market.

Resolution #6: Invest in your “extra” living space to meet current buyers’ needs.

Due to COVID-19, more people are staying at home to work, go to school, exercise, and stay entertained. And these lifestyle changes are showing up in home buyer preferences. For example, according to one study, buyers are looking more and more for homes with formal, outfitted home offices, private outdoor spaces, and updated kitchen appliances.10

So if you’ve got an underutilized room, consider turning it into an office, home gym, schoolroom, or multi-purpose room to meet current home buyer needs and attract better offers on your home. Got some underwhelming space outside? You could turn it into an outdoor entertainment area by adding a firepit, upgrading the patio furniture, or installing a grilling area. Be sure to consult with a local real estate professional before investing in a renovation, however, as each market’s buyers have different tastes.

HOMEOWNERS

Resolution #7: Evaluate your household budget to reflect financial changes.

After this past year, in particular, your financial picture may have changed. Maybe you were furloughed, had your hours reduced, or got a new job further from home. Perhaps you’ve kept the same job, but you’re now working remotely. A work-from-home arrangement could mean less money spent on gas, tolls, a professional wardrobe, and dining out for lunch.

But this could also mean new (or increased) expenses now that you’re working at home, such as new tech-related purchases, faster Wi-Fi, and higher energy bills. January marks the perfect opportunity to update your income and expenses and review last year’s spending habits, tweaking as needed for 2021.

For more specific ideas, view our free report “20 Ways to Save Money and Stretch Your Household Budget.”

Resolution #8: Save money now (and earn more later) with a home maintenance plan.

Having a schedule of regular home maintenance projects to tackle will save you money now and in the long-term. You’ll avoid some surprise “emergency fixes,” and when you’re ready to eventually sell your home, you’ll get higher offers from buyers who aren’t put off by overdue repairs.

Even if nothing necessarily needs fixing right now, you can lower your energy costs by maintaining and upgrading your home.  According to the U.S. Department of Energy, simple fixes add up: replace five most frequently used bulbs with ENERGY STAR ones to save $75/year; repair leaky faucets to save $35/year; replace older toilets with low-flow models to save $100/year; and seal air leaks to save $83-$166/year.11

For a breakdown of home maintenance projects to tackle throughout the year, contact us for our free report “House Care Calendar: A Seasonal Guide to Maintaining Your Home.”

Resolution #9: Invest in real estate for a better standard of living.

Even if you don’t plan on leaving your current residence, real estate is a great way to improve your quality of life in 2021.

Have cabin fever from the long quarantine? A vacation home in a getaway location you love lets you safely spread your wings. And if you have been looking for a second stream of income, an investment property might be your answer. Just be sure to consult with a real estate professional to get a realistic sense of a property’s true income potential.

Want more information on how a second property fits into your 2021 plans? View our free report, “Move Up vs Second Home: Which One Is Right For You?”

LET US HELP YOU WITH YOUR 2021 GOALS

Without a plan and a support system, 55% of Americans will break their new year’s resolutions.12 Whether you’re looking to buy, sell, or stay put in your home, it helps to connect with a trusted real estate agent to keep you motivated and on track.

As local market experts, we have the knowledge, experience, and networks to help you achieve your homeownership goals, whatever they may be. Reach out to us today for a free consultation and commit to a happy and prosperous new year.

Sources:

  1. USA.gov –
    https://www.usa.gov/credit-report
  2. Equifax –
    https://www.equifax.com/personal/education/credit/score/what-is-a-good-credit-score/
  3. NerdWallet –
    https://www.nerdwallet.com/article/mortgages/the-20-mortgage-down-payment-is-dead
  4. Zillow –
    https://www.zillow.com/mortgage-learning/closing-costs/
  5. Realtor.com –
    https://www.realtor.com/research/we-should-be-in-a-buyers-market-right-now-but-covid-turned-everything-upside-down-best-time-to-buy-a-home
  6. Business Insider –
    https://www.businessinsider.com/how-2020-broke-the-housing-market-inventory-could-run-out-2020-9
  7. National Association of Realtors –
    https://www.nar.realtor/sites/default/files/documents/2019-remodeling-impact-10-03-2019.pdf
  8. House Logic –
    https://www.houselogic.com/save-money-add-value/add-value-to-your-home/adding-curb-appeal-value-to-home/
  9. Virginia Cooperative Extension –
    https://www.pubs.ext.vt.edu/content/dam/pubs_ext_vt_edu/426/426-087/426-087.pdf
  10. HomeLight –
    https://www.homelight.com/blog/top-agent-insights-for-q2-2020/
  11. U.S. Department of Energy –
    https://www.energy.gov/energysaver/articles/how-much-can-you-really-save-energy-efficient-improvements
  12. Ipsos –
    https://www.ipsos.com/en-us/urban-plates-ipsos-NY-Resolutions