Real Estate Tips, Tricks & Market Trends

Recent headlines may leave you wondering what’s next for mortgage rates. Maybe you’d previously heard there were going to be cuts this year that would bring rates down. That refers to the Federal Reserve (the Fed) and what they do to their Fed Funds Rate. While cutting, or lowering, the Fed Funds Rate doesn’t directly determine mortgage rates, it does tend to impact them. But when the Fed met last week, a cut didn’t happen — at least, not yet. 

There are a lot of factors the Fed considered in their recent decision and most of them are complex. But you don’t need to be bogged down by those finer details. What you really want is the answer to this question: does that mean mortgage rates aren’t going to fall? Here’s what you need to know. 

Mortgage Rates Are Still Expected To Drop This Year

While it hasn’t happened yet, that doesn’t mean it won’t. Even Jerome Powell, the Chairman of the Fed, says they still plan to make cuts this year, assuming inflation cools:

“We believe that our policy rate is likely at its peak for this tightening cycle and that, if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year.”

When this happens, history shows mortgage rates will likely follow. That means hope isn’t lost. As a recent article from Business Insider explains:

“As inflation comes down and the Fed is able to start lowering rates, mortgage rates should go down, too. . .”

What This Means for You

But you don’t necessarily want to wait for it to happen. Mortgage rates are notoriously hard to forecast. There are so many factors at play and any one of those can change the projections as the economy shifts. And it’s why the experts offer this advice. As Mark Fleming, Chief Economist at First American, says:

“Well, mortgage rate projections are just that, projections, not promises and don't forget how hard it is to forecast them. . . So my advice is to never try to time the market . . . If one is financially prepared and buying a home aligns with your lifestyle goals, then it could be the right time to purchase. And there's always the refinance option if mortgage rates are lower in the future.”

Basically, if you’re looking to move and trying to time the market, don’t. If you’re ready, willing, and able to move, it may still be worth it to do it now, especially if you can find the home you’ve been searching for.

If you’re looking to buy a home, let’s connect so you have someone keeping you up-to-date on mortgage rates and helping you make the best decision possible.

If you have any questions about this article or other real estate challenges, please contact me directly!

Until next time, stay real informed!

Richard Allen

REALTOR®, Media Realty Group Inc.

Licensed in MA, CT, RI and NH

President, the realinsyghts group LLC™

Zillow Premier Agent

508-686-0940

rich@realinsyghts.com

Click here to schedule a time to speak about buying a new home

Click here to schedule time to speak about selling your home

The information contained and the opinions expressed in this article are not intended to be construed as investment advice. the realinsyghts group™ LLC and Media Realty Group, Inc. do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. the realinsyghts group™ LLC and Media Realty Group, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

If any of these reasons resonate with you, maybe it’s time for you to buy too.

Work with a Trusted Real Estate Agent

If you’re a single woman looking to buy a home, it is possible, even in today’s housing market. You’ll just want to be sure you have a great real estate agent by your side.

Talk about what your goals are and why homeownership is so important to you. That way your agent can keep what’s critical for you up front as they guide you through the buying process. They’ll help you find the right home for your needs and advocate for you during negotiations. Together, you can make your dream of homeownership a reality.

Homeownership is life-changing no matter who you are. Let's connect today to talk about your goals in the housing market.

If you have any questions about this article or other real estate challenges, please contact me directly!

Until next time, stay real informed!

Richard Allen

REALTOR®, Media Realty Group Inc.

Licensed in MA, CT, RI and NH

President, the realinsyghts group LLC™

Zillow Premier Agent

508-686-0940

rich@realinsyghts.com

Click here to schedule a time to speak about buying a new home

Click here to schedule time to speak about selling your home

The information contained and the opinions expressed in this article are not intended to be construed as investment advice. the realinsyghts group™ LLC and Media Realty Group, Inc. do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. the realinsyghts group™ LLC and Media Realty Group, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

• Headlines saying foreclosures are rising might make you feel uneasy. But the truth is, there’s no need to worry.
• If you look at the latest numbers, they’re still below pre-pandemic norms and way below what happened during the crash.
• If you're worried about a flood of foreclosures, the data shows a foreclosure crisis is not where the market is today and is not where it’s headed.

If you have any questions about this article or other real estate challenges, please contact me directly!

Until next time, stay real informed!

Richard Allen

REALTOR®, Media Realty Group Inc.

Licensed in MA, CT, RI and NH

President, the realinsyghts group LLC™

Zillow Premier Agent

508-686-0940

rich@realinsyghts.com

The information contained and the opinions expressed in this article are not intended to be construed as investment advice. the realinsyghts group™ LLC and Media Realty Group, Inc. do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. the realinsyghts group™ LLC and Media Realty Group, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

That means roughly 70% have a tremendous amount of equity right now.

After you sell your house, you can use your equity to help you buy your next home. Here’s how:

• Be an all-cash buyer: If you’ve been living in your current home for a long time, you might have enough equity to buy your next home without having to take out a loan. If that’s the case, you won’t need to borrow any money or worry about mortgage rates. Investopedia states:

“You may want to pay cash for your home if you're shopping in a competitive housing market, or if you'd like to save money on mortgage interest. It could help you close a deal and beat out other buyers.”

• Make a larger down payment: Your equity could also be used toward your next down payment. It might even be enough to let you put a larger amount down, so you won’t have to borrow as much money. The Mortgage Reports explains:

“Borrowers who put down more money typically receive better interest rates from lenders. This is due to the fact that a larger down payment lowers the lender’s risk because the borrower has more equity in the home from the beginning.”

The Easy Way To Find Out How Much Equity You Have

To find out how much equity you have in your home, ask a real estate agent you trust for a Professional Equity Assessment Report (PEAR). 

Planning a move? Your home equity can really help you out. Let’s connect to see how much equity you have and how it can help with your next home.

If you have any questions about this article or other real estate challenges, please contact me directly!

Until next time, stay real informed!

Richard Allen

REALTOR®, Media Realty Group Inc.

Licensed in MA, CT, RI and NH

President, the realinsyghts group LLC™

Zillow Premier Agent

508-686-0940

rich@realinsyghts.com

The information contained and the opinions expressed in this article are not intended to be construed as investment advice. the realinsyghts group™ LLC and Media Realty Group, Inc. do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. the realinsyghts group™ LLC and Media Realty Group, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

Finding the right home is one of the biggest challenges for potential buyers today. Right now, the supply of homes for sale is still low. But there is a bright spot. Newly built homes make up a larger percentage of the total homes available for sale than normal. That’s why, if you’re craving more options, it makes sense to see if a newly built home is right for you.

But it’s important to remember the process of working with a builder is different than buying from a homeowner. And, while builders typically have sales agents on-site, having your own agent helps make sure you have proper representation throughout your home-buying journey.

As Realtor.com says:

“Keep in mind that the on-site agent you meet at a new-construction office works for the builder. So, as the homebuyer, it’s a smart idea to bring in your own agent, as well, to help you negotiate and stay protected in the transaction.”

Here’s how having your own agent is key when you build or buy a new construction home.

Agents Know the Local Area and Market

It’s important to consider how the neighborhood and surrounding area may evolve before making your home purchase. Your agent is well-versed in the upcoming communities and developments that could influence your decision. One way a real estate agent can help is by reviewing the builder's site plan. For example, you’ll want to know if there are any plans to construct a highway or add a drainage ditch behind your prospective backyard.

Knowledge of Construction Quality and Builder Reputation

An agent also has expertise in the construction quality and reputation of different builders. They can give you insights into each one's track record, customer satisfaction, and construction practices. Armed with this information, you can choose a builder known for consistently delivering top-notch homes.

Assistance with Customization and Upgrades

The most obvious benefit of opting for new home construction is the opportunity to customize your home. Your agent will guide you through that process and share advice on the upgrades that are most likely to add long-term value to your home. Their expertise helps make sure you focus your budget on areas that will give you the greatest return on your investment later.

Understanding Builder Negotiations and Contracts

When it comes to working with builders, having a skilled negotiator on your side can make all the difference. Builder contracts can be complex. Your agent can help you navigate these contracts to make sure you fully understand the terms and conditions. Plus, agents are skilled negotiators who can advocate for you, potentially securing better deals, upgrades, or incentives throughout the process. As Realtor.com says:

“A good buyer’s agent will be able to review any contracts before you sign on the dotted line, ensuring you aren’t unwittingly agreeing to terms that only benefit the builder.” 

If you are interested in buying or building a new construction home, having a trusted agent by your side can make a big difference. If you'd like to start that conversation, let’s connect.

If you have any questions about this article or other real estate challenges, please contact me directly!

Until next time, stay real informed!

Richard Allen

REALTOR®, Media Realty Group Inc.

Licensed in MA, CT, RI and NH

President, the realinsyghts group LLC™

Zillow Premier Agent

508-686-0940

rich@realinsyghts.com

The information contained and the opinions expressed in this article are not intended to be construed as investment advice. the realinsyghts group LLC™ and Media Realty Group, Inc. do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. the realinsyghts group LLC™ and Media Realty Group, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

When you look at the most recent data (shown in green), it's clear homes are selling faster than they usually would (shown in blue). In fact, the only years when houses sold even faster than they are right now were the abnormal ‘unicorn’ years (shown in pink). According to Realtor.com:

“Homes spent 69 days on the market, which is three days shorter than last year and more than two weeks shorter than before the COVID-19 pandemic.”

What Does This Mean for You?

Homes are selling faster than the norm for this time of year – and your house may sell quickly too. That’s because more people are looking to buy now that mortgage rates have come down, but there still aren’t enough homes to go around. Mike Simonsen, Founder of Altos Research, says:

“. . . 2024 is starting stronger than last year. And demand is increasing each week.”

If you’re wondering if it’s a good time to sell your home, the most recent data suggests it is. The housing market appears to be stronger than it usually is at this time of year. To get the latest updates on what’s happening in our local market, let’s connect.

If you have any questions about this article or other real estate challenges, please contact me directly!

Until next time, stay real informed!

Richard Allen

REALTOR®, Media Realty Group Inc.

Licensed in MA, CT, RI and NH

President, the realinsyghts group LLC™

Zillow Premier Agent

508-686-0940

rich@realinsyghts.com

Here's why this is so significant. Typically, activity in the housing market cools down in the later months of the year as some sellers choose to delay their moves until January rolls around.

This is the first time since 2020 that we’ve seen an uptick in new listings this time of year. This could be a signal that the rate lock-in effect is easing a bit in response to lower rates.

What This Means for You

While there isn’t going to suddenly be an influx of options for your home search, it does mean more sellers may be deciding to list. According to a recent article from the Joint Center for Housing Studies (JCHS):

“A reduction in interest rates could alleviate the lock-in effect and help lift homeowner mobility. Indeed, interest rates have recently declined, falling by a full percentage point from October to November 2023 . . . Further decreases would reduce the barrier to moving and give homeowners looking to sell a newfound sense of urgency . . .”

And that means you may see more homes come onto the market to give you more fresh options to choose from.

As mortgage rates come down, more sellers may re-enter the market – that gives you an opportunity to find the home you’re looking for. Let’s connect so you’ve got a local expert on your side who’ll help you stay on top of the latest listings in our area.

If you have any questions about this article or other real estate challenges, please contact me directly!

Until next time, stay real informed!

Richard Allen

REALTOR®, Media Realty Group Inc.

Licensed in MA, CT, RI and NH

President, the realinsyghts group LLC™

Zillow Premier Agent

508-686-0940

rich@realinsyghts.com

The information contained and the opinions expressed in this article are not intended to be construed as investment advice. the realinsyghts group™ LLC and Media Realty Group, Inc. do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. the realinsyghts group™ LLC and Media Realty Group, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

Clearly, not every baby boomer is planning to sell or move – and even those who do won’t do it all at once. Instead, it will be more gradual, happening slowly over time. As Mark Fleming, Chief Economist at First American, says:

“Demographics are never a tsunami. The baby boomer generation is almost two decades of births. That means they're going to take about two decades to work their way through.”

If you’re worried about a Silver Tsunami shaking up the housing market, don’t be. Any impact from baby boomers moving will be gradual over many years. Fleming sums it up best:

 “Demographic trends, they don't tsunami. They trickle.”