Do headlines have you questioning what’s going to happen with home prices? Experts forecast home prices will not fall or depreciate. Instead, they’re likely to continue appreciating, but at a more moderate, decelerated pace. This means that the rate at which home prices have been increasing will slow---in my opinion that's a good thing! We also expect inventory to go up which will also help! Buyers may go into a bit of a "hibernation mode" over the next few weeks---evaluating what's happening, this could cause us to see homes on the market longer & price decreases for some properties that over estimated the market value in their pricing strategy.
If you want to discuss what’s going on with home prices in our local market, DM me today.
#homepriceappreciation #dreamhome #realestate #homeownership #realestategoals #expertanswers #stayinformed #staycurrent #powerfuldecisions #confidentdecisions #instarealestate #instarealtor #realestatetipsoftheday #realestatetipsandadvice
June Market Update
Oh hey! Have you heard the news....
So it's a wild ride out here in the real estate market & if you know me well you know I work 24/7--especially this time of year--which is why this is coming out two weeks later than planned.... This is a much longer market report than usual---want to chat more with me? Call me!
Why are interest rates going up so quickly:
Good question & I’m getting this question a lot these days. Obviously there are a lot of complicated factors but one way the Feds are attempting to stave off a recession & combat inflation is to stop propping up Mortgage Backed Securities & enticing investors by higher returns on these securities--that return is your interest rate & they get a much higher return on 6% rather than 3%. Mortgages have been sold on Wall Street & for the past many years it’s been a safe & solid investment but with low rates the return on the investment has been low. The Fed made borrowing money easy & practically free as a safeguard for the economy during the pandemic. But that free money, coupled with supply chain & labor market shortages, has caused inflation to spike--everything has gotten expensive & the price for goods & services has soared. The Fed is trying to slow it all down by raising interest rates--it’s basically their way of saying “No dessert for you--Go To Your Room & Think About What You’ve Done.” They’re attempting to bring prices down through what they’re calling a “Soft Landing” rather than a crash & burn recession. Will it work? Time will tell…
In the meantime Sellers are going to have to be more conservative with pricing--we peaked in April. There's still high demand/low inventory so prices will still go up but the rate at which they've been going up will slow. Prices are NOT going to significantly fall---if you have any anxiety about that give me a call & I'll talk you through the data.
Sellers: Do not panic sell! If you don't have someplace to go or a plan in place to Sell + Buy, or a cheap place to rent (there aren't any cheap places to rent unless you know a guy...)--don't sell. Prices will continue to go up for at least the next 3-5 years. Get a plan in place if you want to sell---talk to me! YOU ARE NOT GOING TO LOSE VALUE.
Buyers: Make sure you are monitoring rates & understand how interest rates affect how much you qualify for.
==> Rates are going to keep going up! We're likely in this pattern for the next TWO YEARS.
There's a slight advantage right now because some people are (mistakenly) sitting on the sidelines or (sadly) are priced out. Now is when you may have more options because we have slightly more inventory & instead of 10% over asking we may be looking at 3-5% or less & you may be able to get some seller concessions---perhaps on repair requests or closing cost credits to help buy down your rate.
Share this info with your friends--they're likely seeing a lot of "advice" which is really just opinions online. My information is backed by actual data--if you want charts & specific numbers I can provide the info to you--simply reach out!
Read this for more info!
Buying or Selling? Here's some useful advice!