Holy cow! The difference between the real estate and mortgage business this summer and last summer is amazing. People binge-watched the TV series on Netflix and Roku last summer, and he received multiple offers within a week of the home seller listing the home. Netflix’s stock was $500 per share and Roku’s was $400. Netflix is now down to $236 and Roku to $65.
Home sellers are putting their homes up for sale today, but the buyers all seem to be on vacation. Airlines are unable to keep up with pent-up demand, and hotels and restaurants are back in the black.
Mortgage and real estate companies around the country don’t call this a buyer’s market, but it feels like it to me. Smarttop Produce realtors and their sellers are offering incentives to buyers, such as closing cost credits, and unlike last summer, sellers will accept offers contingent on the sale of the buyer’s departing residence. . A person who has to sell an old house to buy a new one.
Realtors on social media are calling for price cuts and better prices, which is wise. This market should make it easier for those who want to move from their starter home to their forever home.
Note that if a person sells on this market and buys on this market at the same time, it is a wash after all. The only difference might be the mortgage interest rate and the difference between his 2020 and his 2021 interest rates, when interest rates were below his 3%.
If the buyer’s future income doesn’t go up, this is a good reason to stay put. However, if your household income is expected to increase significantly over the next 5 to 10 years, buying a home in the buyer’s market is usually recommended.
Over the past few weeks, several listing agents have told me that some sellers have become dissatisfied and are considering taking the homes off the market and selling them when the market heats up again. The problem with this strategy is whether they will move into their dream home or into a seller’s market nursing home.
Mortgage rates today are a full 1% lower than they were 45 days ago. It’s time to buy. Mortgage lenders, builders and real estate companies should expect to downplay the recession and this “buyer’s market” by calling it a “balanced market.”
All experts know that house prices won’t rise by 15% each year, and may stay flat for a year or two. Liar loan in 15 years.
The real punchline for first-time homebuyers is single-family rental inflation, which is up 14% year-to-date, even though house prices are flat. Renting is no fun.
Jim Porter (NMLS No. 276412) is a branch manager of Solano Mortgage (NMLS No. 1515497), a division of American Pacific Mortgage Corporation (NMLS No. 1850), a financial protection and innovation firm under CRMLA/Equal. Licensed in California by the Department. housing opportunities. Jim can be reached at 707-449-4777.