Summer Real Estate Update
Let’s start with interesting news on the mortgage front. 30 year fixed mortgage rates recently dropped. You can now find 30 year rates in the low 6%. The news is not all great as due to demand for 30 year mortgages it appears all efforts for reduction were focused on the longer term notes. 15 year rates remain high and are also in the mid 6% range.
There is a lot going on in the world that has rates in flux. We are in an election year which always brings uncertainty. There are several global conflicts and hot spots that impact confidence for the future. Feds have been low to lower national interest rates as confidence wanes that inflation is truly under control. There are some good indicators for the future as the market has continued to perform strong throughout the year.
What does this all mean if you are considering buying or selling a home? Honestly, not much. While mortgage rates are far from their historic lows in 2021-2022, they are still relatively low from a historical consideration. While we are not in the buying craze that followed 2020, we are still in an upside down market where demand for homes far outnumber the available housing supply. This has some sellers and buyers sitting on the sidelines waiting for things to change. I believe those sitting on the sidelines could be missing a great opportunity.
If mortgage rates go lower then it usually is accompanied by more buyers entering the market. Simple economics suggest that adding demand to an already limited supply will cause at least a short term spike in new home prices. You may be better served to find your home now, and if the rates lower in the future refinance at that time to take advantage of the savings.
In these uncertain and unstable market environments it is more important than ever to lean into your real estate advisor. A good real estate advisor is worth their weight in gold as they guide you through selling or buying your next home. Homes are one of, if not the, most expensive purchases you will make. If you are listing a home you deserve a real estate advisor who will walk you through the entire process, market your home and work to find a buyer instead of waiting for one to show up, and who will prepare you ahead of time for due diligence so that the period from contract to close is free from any drama. If you are buying a home you deserve the same excellent service from your real estate advisor that the Seller is getting from their agent. The art of negotiation, due diligence and even understanding the recent legal developments are crucial in a real estate deal and can add up to hundreds of thousands of dollars in value.
The best advice I have for you as a summer buyer or seller is be patient. Do your homework and hire the right Realtor. Understand the market and economy but do not be paralyzed by them. Others fears could lead to your profit.