The housing market is currently navigating some complexities, with mortgage rates at their highest in 21 years and home resale rates at their lowest since 2010. In this environment, the role of home staging emerges as a valuable consideration for sellers. This article explores the benefits of staging your home in the current market, supported by expert opinions and recent data.
The Current State of the Housing Market
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.09% recently, the highest in over two decades . Glenn Kelman, CEO of Redfin, stated, "The market is at a standstill... Sales volume is absolutely rock bottom" . Danielle Hale, Chief Economist at Realtor.com, describes the situation as an "inventory crunch," with the number of homes for sale plummeting by 7.9% compared to a year earlier .
The Buyer-Seller Standoff
Both buyers and sellers are in a difficult position. "Buyers are on the fence and struggling with a lack of inventory and higher mortgage rates," says Bess Freedman, the CEO of real estate firm Brown Harris Stevens . Kelman adds, "The people who need to sell won't do it because they don't want to give up their mortgage. The people who normally would buy can't afford it" . Hale notes that this differential has led many homeowners to choose to stay in their homes instead of selling, contributing to low housing inventory .
The Role of Home Staging
In a market where every advantage counts, home staging can be the differentiator. Staging not only enhances the visual appeal of a property but also helps potential buyers visualize themselves living in the space. In a market described as "not champagne and caviar anymore" by Freedman , staging can add that extra sparkle to attract buyers.
The Economic Forces at Play
High mortgage rates and home prices are putting "a real crimp" on the average homebuyer, according to Redfin's report . Hale explains that listing prices have been buoyed by scarce inventory . In such a scenario, a well-staged home can tip the scales in favor of a sale.
The Future Outlook
Experts predict that the current market conditions are unlikely to change significantly in the coming months . This makes the role of home staging even more critical as sellers look for ways to stand out in a crowded market. Hale adds that while inventory continues to be in short supply, there's an "unusual uptick in newly listed homes," signaling a potential return in seller activity .
In today's slow housing market, home staging is not just an option; it's a necessity. As Freedman aptly puts it, "Even in a crisis, there are opportunities" . Home staging could very well be the opportunity sellers need to navigate through these challenging times successfully.
Owner & Staging Consultant at Sizzle Home Staging