The Liz Moore Market Watch Blog

Welcome to the 2nd quarter 2023 edition of Market Talk! 

My goal is to walk through what’s happening in the market, and bring some clarity to those of you who are making real estate decisions this Spring and Summer.

The 4th quarter of 2022 saw a sharp rise in interest rates which cooled the frenzied housing market considerably. This was the result of the Fed’s rapid hikes to the federal funds rate in the final months of last year in an effort to halt inflation.

Rates doubled, which translated to a 38% increase in a typical monthly payment for a home buyer, which in turn caused a large number of buyers to put the brakes on their home searches.

As a result, we began 2023 with a much different temperature in the market than most of last year. The buyers who remained in the market in January were skittish, and frustrated by the rapid rate acceleration.

For the first time since before the pandemic, we began to see buyers offering less than asking price, and in some cases even getting seller concessions. Home inspections and appraisals became the 
norm again, and buyers found themselves in a better bargaining position to ask sellers to make repairs than they had been in a long time.

Richmond:

In February in our Richmond office, offers accepted for less than asking or at asking price were 62% of the market, while bidding wars were only happening on approximately 38% of the listings.

Just as buyers were beginning to feel that the market pendulum was swinging back to their favor, things heated up again in March. We saw a sharp rise in multiple offers as it became clear that the number of buyers was still outpacing the inventory.

By the time our March report was published, offers over the asking price had increased to 50% of all sales!

Peninsula:

In February in our Peninsula office, for example, offers accepted for less than asking or at asking price were 59% of the market, while bidding wars were only happening on approximately 39% of the listings.

Just as buyers were beginning to feel that the market pendulum was swinging back to their favor, things heated up again in March. We saw a sharp rise in multiple offers as it became clear that the number of buyers was still outpacing the inventory.

By the time our March report was published, offers over the asking price dipped just a bit to 36%.

Williamsburg

In February in our Williamsburg office, for example, offers accepted less than asking price climbed to over 50% of the market, while bidding wars were only happening on approximately 25% of the listings.

Just as buyers were beginning to feel that the market pendulum was swinging back to their favor, things heated up again in March. We saw a sharp rise in multiple offers as it became clear that the number of buyers was still outpacing the inventory.

By the time our March report was published, offers over the asking price doubled in 30 days, representing 50% of all sales.

Northern Neck

By the time our March report was published, offers over the asking price dipped just a bit to 36%.

It seems that the market is delivering mixed signals right now, but I believe what is really happening is that there are several different markets colliding at the same time:

• For listings that are well priced and in good condition, there are still fewer homes available than there are buyers who need or want to move, and so that segment of the market is still pretty “hot,” with multiple offers and sellers enjoying the upper hand.

• For those sellers who have jumped into the market at the last minute (fearing that they’ve missed the gravy train of 2021 and early 2022, and accordingly pushing the envelope with unrealistic prices), they are experiencing a longer time on the market, and weary buyers pushing back with lower offers containing normal contingencies.

Markets are also experiencing different activity levels based on price point and location, which can seem confusing. Now, more than ever, it’s important to have a seasoned agent advising you on negotiating strategies whether you’re a buyer or a seller (or both).

Thinking about making a move?  Let us guide you through these market conditions!

Is your lease up this Summer?  Timing the end of a rental lease and the purchase of your first home doesn't have to be stressful.  Here's what you need to know.

Start with a local real estate agent who can help you manage your timeline. 

Your agent will help you:

Step 1: Get pre-qualified so you know how much you can comfortably afford.  There is grant money available to help you with down payment and closing costs…ask us more!

Step 2: Start your home search.

Step 3: Find the ideal home for you, and negotiate a contract with terms to suit your budget and your timetable.

Step 4: Love your first home!

If your lease is ending, let one of our agents guide you through the next steps.  Click here to get started!

By: Liz Moore

Welcome to Market Talk!

I’m Liz Moore, President of Liz Moore & Associates, and today  we’re going to talk about what’s happening in the local real  estate market. This past year was a roller coaster ride, and  it has left many people questioning whether now is a good  time to move. The market is actually pretty complicated  these days, and it’s important to have a solid understanding  of what’s happening and how it will affect YOUR move.

My goal is to bring some clarity about what’s really happening in the market, and how you can leverage that to accomplish your personal real estate goals.

So, let’s get to it!

By: Lauren Cummings

Some homeowners may argue that selling your home in the winter season is the best time of the year to be on the market. Here are a few reasons why:

• Prospective home buyers are serious, motivated, and ready to buy.

• Fewer choices on the market lead to less competition and receiving closer to your asking price.

• Some houses show even better over the holidays.

If you adjust your marketing approach to align with the advantages of the winter  season, the process will be exciting and inspiring for you and potential buyers. 

First Impressions Matter

• Buyers aren’t expecting to see lush green lawns in the wintertime, but lawn upkeep is a noticeable 
first impression. Trimming, edging, and discarding  leftover fall leaves and debris will go a long way 
toward impressing potential buyers.

• Outdoor lighting is especially important in the  dark winter months. Illuminate the pathway to 
your porch as a courtesy and the exterior of your  home to showcase it.

• Holiday lights are a decorative advantage of the season. Don’t hesitate to put up exterior lights;  however, leave room for potential buyers to use  their imagination – refrain from making it too 
visually cluttered.

Placing Interior Décor

• The same advice for interior holiday décor applies;  holiday décor adds to the beauty of the home, but 
keep in mind not to cover any marketable aspects that buyers will want to see, such as the stair railing. 

Creating a Warm Ambiance

• Lighting the fireplace, playing calming music, and  using subtle scents are great ways to make your home 
warm and inviting for showings.

• Adding throw pillows and throw blankets is a nice  touch and adds to the cozy ambiance. 

• Always leave the heat on for showings. Keeping  a warm temperature in the home offers a welcoming 
atmosphere and prevents chilly distractions. 

Applying this marketing strategy will compel the buyer to visualize their own space, creating excitement for the wintertime in their cozy new home.

Ready to get started?  We can help!  Click to find an agent in your area who can help you get your home sold this winter.

By Leslie Pearce

Spending quality time indoors with your pet is one of life’s great enjoyments. With that in mind here are some helpful tips to make sure both you and your pet are as happy inside as outside.

A big question to think about, where are your pets going to sleep? Under the kitchen table? In a dog bed, kennel, sofa or with you? Your pet will appreciate a quiet place and their own bed where they can catch a quick nap before looking for their next adventure.

Animals need plenty of toys to chew on, otherwise the remote and your glasses can be mighty tempting! If you like open windows, make sure your screens are secure. Give your cat an alternative to the couch such as a scratching post.

Waterproof luxury vinyl and tile are the best options for flooring. Buy furniture with pet hair and claws in mind.
Silk, velvet, denim, and woolen fabrics are magnets for animal hair. Leather and its alternatives are good choices. Rugs with non-skid pads are a must for safety. Cats love rubbing against something scratchy or lumpy so AVOID textured walls or embossed wallpaper.

Cats and dogs play and drink in toilets, close lids. Chocolate, avocado, tomatoes, and other tasty snacks can be
harmful to your dog or cat. Keep cords from blinds secure, a dangerous enticement for animals.

Having a well thought out indoor environment for your pet is always a great idea!

Brandon Wilson, Director of Media at Liz Moore & Associates, took home a silver award at the 2021 Telly Awards in The Best of Branded Content category for a video he produced highlighting the company’s culture and values.

“We are beyond thrilled to receive this award. The marketing team at Liz Moore & Associates does such a great job of supporting our Realtors®. Brandon consistently creates impactful videos and we are so happy to earn our first Telly,” said Bob Halloran, Director of Marketing at Liz Moore & Associates.

The Telly Awards annually showcases the best work created within television and across video, for all screens. Receiving over 12,000 entries from all 50 states and 5 continents, Telly Award winners represent work from some of the most respected advertising agencies, television stations, production companies and publishers from around the world.

To see Wilson’s work, visit lizmoore.com/TV.

By: Courtney Efird, Ameris Bank, NMLS#: 659400

Are you looking to start the home buying process?

Ameris Bank is proud to partner with many state and county government agencies to provide down payment assistance in the form of forgivable or repayable grants or forgivable or repayable second mortgages.

A forgivable grant or second mortgage means that the down payment assistance funds are forgiven over a predetermined length of time you own the home. One agency in particular we work with closely is the Federal Home Loan Bank of Atlanta. Their grant funds are released in the 1^st quarter of the year and a specific amount is allotted to each participating bank.  The money can be used until it runs out, so in this real estate market it is better to act fast!

Below are two of their offerings that can be used toward down payment or closing costs to purchase a new home.

FHLB Grants and Assistance - $7500
This program offers funds for the purchase of an existing unit by a first time homebuyer (not having owned a home or lived in the home they own in the last 3 years).  

Program Highlights:  

• Must be primary residence with forgivable loan options after 5 years 
• Homebuyer counseling required 
• Grant funds can be used for down payment and closing costs 
• Household income limits may apply 

FHLB Community Partners - $10,000
We offer a unique financial opportunity for current or retired law enforcement officers, educators, health care workers, firefighters and other first responders as well as employees of these accredited institutions.

Program Highlights: 

• Maximum assistance is $10,000, homebuyer must contribute at least $1,000 
• Eligible homebuyers include veterans and active-duty military, or their surviving spouse, essential workers, law enforcement officers, educators, healthcare workers, firefighters or any other first responders 
• Eligible for primary residence purchases 
• Income limits apply 
• Homebuyer education course required 

This is an amazing opportunity to help you get in to the house or your dreams, but funds are limited so don't delay.  Click here to find out if you qualify.

The Liz Moore & Associates Update Now Pay Later Program helps sellers get their homes market ready with minimal investment, knowing the right enhancements that will result in more money in their pocket.

As part of the program, Liz Moore & Associates will advance the homeowner the money and arrange contractors to maximize the bottom line. If the home is then listed with Liz Moore & Associates, the seller doesn't pay until closing!  Getting started is easy.  Simply set an appointment for a free, no-obligation, market-ready assessment of your home.

Hear from a client who put this program to work for them:

At Liz Moore & Associates, we understand that getting you top dollar for your home means creating maximum exposure with an aggressive digital marketing strategy.

By: Liz Moore

There May Never Be a Better Time to Sell Your Home.
The primary factors that are influencing both national and local real estate markets right now – low supply
and high demand – have converged to create an incredibly favorable market for sellers. This is particularly
true in our local market, where additional demand has been fueled by the pandemic; buyers who now work
remotely and can accordingly choose where they live and no longer be restricted by a commute, are finding
Richmond a highly desirable place to live.

Sellers in 2021 enjoyed peak pricing, with the median sold price up 12.3% over last year in the Greater
Richmond region. That was enhanced by multiple offers in many instances. My crystal ball says that the
favorable trend for sellers will continue well into 2022. The only 2 things likely to slow the train down
are an increase in interest rates, which will take some buyers out of the market, and an influx of listing
inventory, creating more competition. I do believe that both of those things will happen in 2022, but most
likely not until the 2nd or 3rd quarter.

So, What Does This Mean for Buyers?

Buyers have had a tough go of it for the past 2 years. When there are 5 offers on a new listing, only 1 buyer
is successful in their bid, leaving 4 disappointed and still looking. However, historically low interest rates
are a compelling reason to stay in the game, and also inspire a buyer to pay over asking to win the bid on
the property they really want.

Closed sales in the Richmond area were up 7.3% in 2021 over the prior year (and 23.6% at Liz Moore &
Associates in Richmond), so that’s good news. We believe the key for buyers to win in the current market
climate is to hire a great agent. And, while that may sound self-serving, it’s true. Experienced agents who
understand the market, have solid relationships with the other agents, and who are savvy negotiators will
make the difference for a buyer to be successful.

I predict that sales will drop slightly in 2022. So says Lawrence Yun, the Chief Economist for the National
Association of REALTORS, and I agree. Although there is plenty of demand out there, inventory is simply
so low (hovering around half a month’s supply as of this writing) that it will keep a lid on the number
of sales.

Real Estate is a Great Hedge Against Inflation.

If you invest $30,000 in the stock market, and your annual return is 7%, then you’ve earned $2,100 (which
is a lot better than you’ll do in a regular savings account in the bank!). Invest that same $30,000 as a down
payment on a $300,000 home, and if it appreciates 7% in a year, then you’ve earned $21,000 – 10 times
more! That’s the benefit that the leverage of real estate affords.

This is a great time to explore investing in real estate; your portfolio can guarantee your retirement, or it
can get your kids started on building lifetime wealth.

Don’t let the intense market intimidate you. If you want to take advantage of the sellers’ market and the
low interest rates to move up to a dream house for instance, don’t let the challenge of buying stop you.
Your Liz Moore agent can help you formulate a strategy, and combined with a little patience, we can make
it happen.

In 2008, we all wished we had sold our homes back in 2005. Where will you be in 2025?