- Home sellers’ repair budgets increased by 51% as buyers no longer waive contingencies.
- The average work order value for repairs was $3,831 in September, compared to $2,537 in September 2021.
- Fix-it repair requests are up more than 100% compared to the same period last year, according to PunchListUSA.
Home sellers’ repair budgets have seen more than 50% price increases over the past year as more homes have been on the market for longer in the United States, according to new data.
Average work orders for repairs were approximately $3,831 in September, compared to $2,537 for the same period a year ago. punch list usa is a real estate technical inspection and repair company based in Charleston, South Carolina with operations in 14 major cities, including Atlanta, Dallas, Denver, Phoenix and Washington.
PunchListUSA’s findings are derived from work orders generated from over 26,000 quotes through the platform. Additionally, repair requests from homebuyers are up more than 100% compared to a year ago.it is because there are many Buyers were once willing to forego such contingencies, including certain home inspections, as demand for homes soared in a highly competitive market, according to PunchListUSA’s chief financial officer. Mark Kearns told USA TODAY.
“Owners who repair homes at the buyer’s request are almost becoming a requirement again,” Kearns said. “We are seeing the industry revert from being a seller’s market to being a buyer’s market.”
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PunchListUSA’s fix-it numbers are evident as the once-hot US housing market continues to cool. Second-hand home sales in August fell 0.4%, the seventh straight month of decline, and fell 20% year-on-year. National Real Estate Association‘Latest number. According to the NAR, his August year-over-year sales fell from 5.99 million units in August 2021 to his 4.8 million units.
In addition, about 60,000 home-buying deals failed to close in June, according to real estate brokers. redfin , total about 14.9% of the housing under contract for the month. This was the highest percentage ever recorded outside of March 2020 and April 2020, when the housing market stagnated due to the COVID-19 pandemic.
“The market is softening and buyers can walk away if no repairs are made,” he said. Laura Helt, Chief Growth Officer of PunchListUSA. “Many contracts are void.”
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Rise in order prices for repair work
PunchlistUSA also said the average repair work order size increased 37% year-over-year to $3,729 in September, compared to $2,727 in September 2021. Most requested repairs included electrical wiring, heating, ventilation and air conditioning. Upgrade to kitchen for 15+. Roof repairs, including leaks.
This finding is supported by the fact that US homes spent an average of 50 days in the market last month. record According to the 31st May low St. Louis Federal Reserve System When Realtor.com.
PunchListUSA’s Helt says the market has slightly more housing supply. It was just 6 months ago. The supply of homes for sale in September increased by 27% compared with the same period last year. Realtor.com Said.
“More vacant homes means[buyers]don’t have to rent them out,” said Heldt, noting that home prices are falling. was $389,500, nearly 8% higher than a year ago.
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mortgage interest rate
Higher mortgage rates are also a factor, he added. The average interest rate for his popular 30-year fixed mortgage, which accounts for over 90% of all mortgage applications, is now just over 7%. Mortgage News Daily.
That’s more than double the mortgage rate, which was around 3% in early 2022, and should really be considered by more home buyers, Helt said.
“Buyers now want less fixer uppers and move-in ready homes,” said Heldt. “They want more transparency about the prices they’re paying.”