Last Thursday, Freddie Mac announced that their 30-year fixed mortgage rate was over 3% (3.02%) for the first time since last July. That news dominated real estate headlines that day and the next. Articles talked about the “negative impact” it may have on the housing market. However, we should realize two things:
1. The bump-up in rate should not have surprised anyone. Many had already projected that rates would rise slightly as we proceeded through the year. 2. Freddie Mac’s comments about the rate increase were not alarming: “The rise in mortgage rates over the next couple of months is likely to be more muted in comparison to the last few weeks, and we expect a strong spring sales season.” A “muted” rise in rates will not sink the real estate market, and most experts agree that it will be “a strong spring sales season.” What does this mean for you? Obviously, any buyer would rather mortgage rates not rise at all, as any upward movement increases their monthly mortgage payment. However, let’s put a 3.02% rate into perspective. Here are the Freddie Mac annual mortgage rates for the last five years:
And, if we expand our look at mortgage rates to consider the last 50 years, we can see that today’s rate is truly outstanding. Here are the rates over the last five decades:
Being upset that you missed the “best mortgage rate ever” is understandable. However, don’t throw the baby out with the bathwater. Buying now still makes more sense than waiting, especially if rates continue to bump up this year. Bottom Line It’s true that you may not get the same rate you would have five weeks ago. However, you will get a better rate than what was possible at almost any other point in history. Contact a local real estate professional today so you can lock in a great rate while they stay this low. SOURCE KCM #BuyingMyths #HousingMarketUpdate #Mortgage #SimardRealtyGroup
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The demand for homes hasn’t slowed down, and the housing market is poised to get even hotter this spring. As buyers compete for almost any house they can find, sellers have leverage to get the best terms in the negotiation process. DM me today so we can make sure your house is ready to sell this spring.
#sellersmarket #homebuyerdemand #NAR #timetosell #sellyourhouse #expertanswers #stayinformed #staycurrent #homeownership #realestatetips #realestatelife #realestatenews #realestateagent #realestateexpert #keepingcurrentmatters When selling a house, most homeowners hope for a quick and profitable transaction that puts them in a position to make a great move. If you’re waiting for the best time to win as a seller, the market is calling your name this spring. Here are five reasons why this is the perfect time to sell your house if you’re ready.
1. There’s high demand from homebuyers. Buyer demand is strong right now, and buyers are active in the market. ShowingTime, which tracks the average number of buyer showings on residential properties, recently announced that buyer showings are up 51.5% compared to this time last year. Daniil Cherkasskiy, Chief Analytics Officer at ShowingTime, notes: “As anticipated, demand for real estate remains elevated and continues to be affected by low levels of inventory…On average, each home is getting 50 percent or more requests this year compared to January of last year. As we head into the busy season, it’s likely we’ll push into even more extreme territory until the supply starts catching up with demand.” When your house is positioned to get a ton of attention from competitive buyers, you’re in the best spot possible as the seller. 2. There aren’t enough houses for sale. Purchaser demand is so high, the market is running out of available houses for sale. Recently, realtor.com reported: “Nationally, the inventory of homes for sale in February decreased by 48.6% over the past year, a higher rate of decline compared to the 42.6% drop in January. This amounted to 496,000 fewer homes for sale compared to February of last year.” The National Association of Realtors (NAR) also reveals that, while home sales are skyrocketing, the inventory of existing homes for sale is continuing to drop dramatically. Houses are essentially selling as fast as they’re hitting the market – in fact, NAR reports that the average house is on the market for only 21 days. It’s this imbalance between high buyer demand and a low supply of houses for sale that gives sellers such an advantage. A seller will always negotiate the best deal when demand is high and supply is low. That’s exactly what’s happening in the real estate market today. 3. You have a lot of leverage in today’s market. Clearly, many more people are interested in buying than selling this spring, creating the ultimate sellers’ market. When this happens, homeowners in a position to sell have the upper hand in negotiations. According to NAR, agents are reporting an average of 3.7 offers per house and an increase in bidding wars. As a seller, this means the ball is in your court – so much so that you can use your leverage to negotiate the best possible contract. Demand is there, and now is the perfect time to sell for the most favorable terms. 4. It’s a great way to use your home equity. According to the latest data from CoreLogic, as of the third quarter of 2020, the average homeowner gained $17,000 in equity over the past year, and that number continues to grow as home values appreciate. Equity is a type of forced savings that grows during your time as a homeowner and can be put toward bigger goals like buying your next dream home. Mark Fleming, Chief Economist at First American, notes: “As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home – the wealth effect of rising equity. In today’s housing market, fast rising demand against the limited supply of homes for sale has resulted in continued house price appreciation.” 5. It’s a chance to find a home that meets your needs. So much has changed over the past year, including what many of us need in a home. Spending extra time where we currently live is enabling many of us to re-evaluate homeownership and what we find most important in a home. Whether it’s a house that has the features suited to working remotely, space for virtual or hybrid schooling, a home gym or theater, or something else, selling this spring gives you a chance to make a move and find the home of your dreams. Bottom Line Today’s housing market belongs to the sellers. If you’ve considered making a move but have been waiting for the right market conditions, your wait may be over. Contact a real estate professional so you’ll be positioned to win when you sell your house this spring. SOURCE KCM #SellingMyths #Pricing #ForSellers #HousingMarketUpdate #SimardRealtyGroup Some Highlights
#Infographics #MoveUpBuyers #SimardRealtyGroup Today’s housing market has more buyers than sellers, so there’s a shortage of homes available to purchase. As a homeowner, this means you’re in the perfect seat to sell your house at a time when it can really stand out from the crowd – and maybe even receive multiple offers. DM me if you’re thinking of moving, as this may be your year.
#sellyourhouse #housingsupply #realestate #homeownership #realestatetips #realestatelife #realestateexpert #realestateagency #realestateexperts #realestateagents #realestatetipsoftheday #realestatetipsandadvice #keepingcurrentmatters Last year, many homeowners thought twice about selling their houses due to the onset of the health crisis. This year, however, homeowners are beginning to regain their confidence when it comes to selling safely. The latest Home Purchase Sentiment Index (HPSI) by Fannie Mae shows that 57% of consumers believe now is a good time to sell.
Doug Duncan, Vice President and Chief Economist at Fannie Mae, explains: “Overall, the index’s monthly increase was driven largely by a substantial jump in the share of consumers reporting that it’s a good time to sell a home, with many citing favorable mortgage rates, high home prices, and low housing inventory as their primary rationale.” Normally, spring is the busiest season in the housing market – the time when many homeowners decide to list their houses. While this is obviously not a normal year since the pandemic is still very much upon us, experts are optimistic that consumer positivity around selling will lead to more homeowners making moves this year. Duncan continues to say: “We will pay close attention to see if this newfound optimism develops into a trend.” What does this mean if you’re thinking of selling your house? The fact that there are so few houses available for sale today is one driver that’s encouraging consumers to think more positively about selling. The National Association of Realtors (NAR) states: “Total housing inventory at the end of January amounted to 1.04 million units, down 1.9% from December and down 25.7% from one year ago (1.40 million).” With so few homes available to buy, your house will be more likely to rise to the top of an eager purchaser’s wish list in this competitive market. Today’s high buyer activity is creating upward pressure on home prices and more multiple-offer scenarios. According to the Realtors Confidence Index Survey from NAR, the average home for sale is receiving 3.7 offers today, up from 2.3 offers just one year ago. This makes selling even more enticing. In this kind of sellers’ market, you have a huge advantage in the process. And here’s another win – you can also use your equity toward a down payment on a new home when you move. Wondering where you’ll go if you try to move while it’s so challenging to find a home to buy? Well, in many areas, there are more homes available at the higher end of the market, so finding a move-up home may be less of an issue if you’re ready to search for your dream home this spring. Bottom Line If you pressed pause on selling your house last year, now may be the best time to put your plans back into motion while inventory is so low. Contact a local real estate professional today to get the process started. SOURCE KCM: #Pricing #Selling #SellingMyths #SimardRealtyGroup #RealBrokerLLC There’s a lot happening in today’s housing market, and whether you’re buying or selling a home, the process is moving quickly. More than ever, having a real estate pro on your side makes all the difference in your success. DM me so I can answer your questions and help you achieve your real estate goals.
#realestate #housingmarket #protips #homeownership #homebuying #realestategoals #realestatetips #realestateagency #realestateadvice #realestatemarket #realestateexperts #realestatetipsandadvice #keepingcurrentmatters Whether you’re buying your first home or selling your current house, if your needs are changing and you think you need to move, the decision can be complicated. You may have to take personal or professional considerations into account, and only you can judge what impact those factors should have on your desire to move. However, there’s one category that provides a simple answer. When deciding to buy now or wait until next year, the financial aspect of the purchase is easy to evaluate. You just need to ask yourself two questions:
Nobody can guarantee what home values or mortgage rates will be by the end of this year. The experts, however, seem certain the answer to both questions above is a resounding ‘yes.’ Mortgage rates are expected to rise and home values are expected to appreciate rather nicely. What does this mean to you? Let’s look at how waiting would impact your financial situation. Here are the assumptions made for this example:
Here’s the financial impact of waiting:
Bottom LineThere are many things to consider when buying a home. However, from a purely financial aspect, if you find a home that meets your needs, buying now makes much more sense than buying next year. SOURCE KCM #BuyingMyths #ForBuyers #DownPayments #SimardRealtyGroup #RealBrokerLLC As a homeowner, your monthly mortgage payment is a form of forced savings known as equity. Like with any type of savings, equity should be handled with caution, but it can be a great asset, like when you want to apply it toward a down payment when you move. DM me to learn more about your home equity and how it can help you buy your dream home.
#homeequity #forcedsavings #expertanswers #stayinformed #staycurrent #powerfuldecisions #confidentdecisions #realestate #homevalues #homeownership #homebuying #realestategoals #instarealtor #realestatetipsoftheday #keepingcurrentmatters The real estate market was on fire during the second half of 2020. Buyer demand was way up, and the supply of homes available for sale hit record lows. The price of anything is determined by the supply and demand ratio, so home prices skyrocketed last year. Dr. Lynn Fisher, Deputy Director of the Federal Housing Finance Agency (FHFA) Division of Research and Statistics, explains: “House prices nationwide recorded the largest annual and quarterly increase in the history of the FHFA Home Price Index. Low mortgage rates, pent up demand from homebuyers, and a limited housing supply propelled every region of the country to experience faster growth in 2020 compared to a year ago despite the pandemic.” Here are the year-end home price appreciation numbers from the FHFA and two other prominent pricing indexes:
The past year was truly a remarkable time for homeowners as prices appreciated substantially. Lawrence Yun, Senior Economist at the National Association of Realtors (NAR), reveals: “A typical homeowner in 2020, just by being a homeowner, would have accumulated around $24,000 in housing wealth.” What will happen with home prices this year? Many experts believe buyer demand will soften somewhat as mortgage rates are poised to bump up slightly. Some also believe the inventory challenge will ease as more listings come to market this year. Based on this, most forecasters anticipate we’ll see strong appreciation in 2021 – but not as strong as last year. Here are seven prominent groups and their projections: Bottom Line
Home price appreciation will be strong this year, but it won’t reach the historic levels of 2020. If you’d like to find out what your house is currently worth, contact a real estate professional in your local market. SOURCE KC #ForSellers #HousingMarketUpdates #Pricing #SimardRealtyGroup |
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