Explaining What’s Happening to Interest Rates
Here’s what you should know about our rapidly changing interest rates.
Why are mortgage rates rising? When will they go back down or go even higher? I was recently interviewed by money.com to talk about this. Here’s a link to the interview if you’d like to read it.
Going back to the topic of mortgage rates, we have a lot of uncertainty in the real estate market and the global economy today. When you ask what interest rates are doing, there are two driving forces behind it that we need to look at: The first thing is the traders’ level of uncertainty and their appetite to buy mortgage-backed securities. The second one is that interest rates tend to closely follow the ten-year Treasury yield.
What we know thus far is that as rates continue to be increased by the federal government in the central banks, the ten-year Treasury yield becomes more attractive, and the yields go up. Typically, mortgage-backed securities or interest rates trade somewhere about 100 to 120 basis points above those ten-year Treasury yields. If the ten-year Treasury yield is 3%, you should expect to see an interest rate of around 4.5%. However, in times of uncertainty, yields go further and further apart, and they get as much as 300 or 350 basis points apart.
When this happens, the ten-year rate is around 3%, but then mortgage interest rates are around 6%. Eventually, some of that uncertainty goes away. The tenure stays where it is, and mortgage rates snap back to their normal levels of 100 to 150 basis points. In fact, we saw this happen last week. Consumer inflation came out a little bit softer than expected, and overnight, you saw interest rates go from 7% to 5.5% and then to 5.75%.
Why does this matter for homebuyers and sellers? You have to pay attention because the market is moving fast. We’ve rarely seen volatility like this, but volatility creates opportunity. Reach out to one of our agents, and we will help you take advantage of the opportunities in this market. I look forward to hearing from you!
Price and Condition Affect How Your Home Sells
The importance of pricing your home correctly as the market shifts.
Do you know how to correctly price your home in this quickly changing market? We frequently get asked why one home isn’t selling or why one sold so quickly, and we believe that price plays a big part in this. The market has changed so much since the summer, and it continues to change, so it’s important that we all adapt, even with prices.
During this time last year, 41% of homes sold above their list price. Many people think that’s not possible today, but the truth is that at the end of September, 28% of homes still sold above their list price. We want to help sellers like you get this opportunity with your house, so we have some advice.
There are two components that you need to pay attention to, and they are price and condition. Know that your price has to be appropriate for the condition of your home. Great homes with great prices will sell quickly and oftentimes over their asking price. Great homes with average prices may sit on the market. Average homes with great prices can sometimes sell quickly. Lastly, average homes with average prices will sit for a very long time.
Therefore, make sure to work closely with your agent to pick the price that will cause your home to sell. It may not be the actual price it sells at, but you want to work hard to be competitive and to be seen as the best value in the market so that buyers naturally choose you. The last thing you want to do is have the house that sits on the market and helps the other houses around you sell.
Reach out to a member of our team with any questions about what your home is worth in today’s market. You can call or email us anytime, and we would love to hear from you.
How To Predict the State of the Spring Market
The factors that affect the market and its trajectory for the spring.
Are you wondering what we can expect for our market this spring? Many people are! There is a lot of speculation, but today I’m going to share the data that shows what is happening to our market and where it’s headed.
You can listen to the full video above or skip to specific topics using these timestamps:
0:00 — Introduction
0:30 — How population growth means the home sales just moved
1:36 — Interest rate relief and inflation
2:10 — The price for a 30-year mortgage is going down
2:48 — Expect to see a surge in demand
3:12 — The only times that home prices went down in the last 20 years
4:23 — Expectations for 2023
5:14 — Wrapping up
I am very encouraged about the possibilities in the spring market. If you are thinking about buying or selling, now is the time to act! Call or email me anytime if you want help or have any questions. I look forward to working with you.
What You Need To Know About Our Housing Market
What you need to know about our crazy housing market and its future.
So far, 2023 has been the craziest market I’ve ever seen. Interest rates are coming down, home prices are stabilizing, and everything is getting flipped on its head. Today I’ll break down what happened to our housing market in 2022, what has happened in 2023 so far, and what this all means for you.
You can listen to my full explanation in the video above or skip to each topic using the timestamps provided:
0:00 — Introduction
0:39 — Recapping 2022’s housing market
1:30 — What continued low supply means for our market
2:53 — Prices fell in the second half of 2022, but they were still up year over year
3:50 — Affordability has greatly impacted our market
5:06 — Great news for the future of housing prices
6:22 — Wrapping things up and how to reach me
If you have questions about this topic or anything else, please call or email me. I am always willing to help!
The Important Stats for the February Market
Presenting the market trends that emerged in throughout February.
Although March has just started, 2023 has already brought a lot of interesting changes to the housing market. Today, I’m here with a breakdown of some of the most critical market stats that have defined real estate in the past month.
Feel free to watch the full video above or use these timestamps to browse specific topics at your leisure:
0:00 — Introduction
0:23 — Inventory
1:07 — Homes sold
1:43 — Home prices
2:48 — Interest rates
5:38 — Don’t wait for rates or prices to drop
6:20 — Wrapping up
If you have questions about the market or need help with your real estate plans, call or email me. I’d love to connect with you.
June 2021 Home Price Update
Even after more than a year in our frenzied market, home prices continue to soar, which is excellent news for those who own new and existing homes in our marketplace.
The Case-Shiller National Home Price Index measures the average home prices in major markets across the nation—they’ve tracked that home prices rose by 13.2% year over year as of March, which had the highest annual price growth rate in almost 16 years. According to the National Association of Realtors, the median sales price for existing homes increased by 19.1% in April to $341,000.
This extreme price growth is driven by a few different factors. Record-low mortgage interest rates have made purchasing homes more affordable, even considering rising home prices. Many people have taken advantage of this and flocked away from urban centers, seeking out homes that offer more space to accommodate working remotely and spending more time at home in general.
However, supply is still very limited, and inventory may only continue to shrink. High prices and high demand have contributed to the shortage; April was the third month in a row of declining home sales. By the beginning of May 2021, the number of available homes for sale had shrunk by 20.5%.
This has led to some intense multiple-offer situations, where buyers are throwing out all the stops to compete for homes, including by waiving inspections, appraisals, and other contingencies to draw the seller’s eye to their offers.
Even though homebuilders are trying their best to keep up with demand, the new home construction industry can’t fill the gap in inventory. Increased land, labor, and material costs have made building new homes difficult and expensive, even as demand continues to surge. Still, many are turning to new construction homes because the competition for existing homes is still fierce in our current market.
As hectic as it sounds, this market presents some prime opportunities for homeowners to get top dollar for their properties. However, just because options are slim and demand is high doesn’t mean you can simply throw your home on the market and expect it to fetch a maximal price. Before you can figure out how much you can expect to walk away with, you’ll first need to assess how much it will cost you to prepare your home for the market.
Here’s a quick breakdown of some of the costs of selling a home:
- Preparing Your Property. Though you may not need to go all out in getting your home ready for the market, sprucing things up here and there will help maximize your property’s value. For the interior, you’ll want to declutter, clean, paint, and stage; according to the NAR, buyers spend an average of 40 minutes in a staged home compared to five minutes in a non-staged home.You’ll also want to freshen up your home’s curb appeal. The cost depends on what you need to have done. You should at least make sure that your landscaping is trimmed and neat. Spending as little as $300 on lawn care can get you an extra $1,200 when you sell.
- Repairs. Though some buyers are waiving inspections to be more competitive, that isn’t typically recommended, so expect a home inspection. A good rule of thumb is to set aside 2% of your sales price to cover the cost of necessary repairs that may come up on your inspection report.
- Closing Costs. As a seller, you’ll be expected to pay a few different fees at the closing table, including title fees, transfer taxes, escrow fees, and miscellaneous taxes and dues. Plan to spend around 8% to 10% of your sales price on these seller expenses, though you may spend less than that.
The bottom line is that now is an excellent time to be a seller. The market leans heavily in your favor, and with just a little time, investment, and guidance from an experienced real estate professional, you can get the absolute best price for your home.
If you’re curious about what you could get for your home, check out this link to instantly calculate your home’s value based on recent Tucson sales:
Enter your address here to find out what your home is currently worth
If you need assistance getting the home-selling process started or have questions about any other real estate matter, please don’t hesitate to reach out to me. I would love to help you reach your real estate goals.
Is a Pricing Correction on the Horizon?
Are home prices expected to drop soon? Here’s what you need to know.
When will we see a housing price correction? If you’ve been reading the news, most recent media headlines have been about housing prices stalling, falling, or cooling. Is a pricing correction soon to happen, or is it already happening? Today I’ll share my answer to this question.
According to experts, home prices will not decrease. They are expecting the rate of appreciation to slow down instead. Historically, real estate has appreciated 4% year over year. During 2008, the housing crisis caused an economic crisis, eventually leading to a 20% pullback in home prices nationally.
The current economic and housing market conditions are very different from the housing crash in 2008. Our strong price appreciation in the last few years was driven by stimulus money, additional liquidity, and a historically strong job market — not by manufactured loans, unlike in 2008. This means that there is nothing to indicate that housing prices will collapse.
Most experts predict 4% to 7% housing price appreciation over the next year. Due to interest rates rising dramatically in the first half of this year, home affordability has taken a hit. If you’re a buyer, it’s tough to see house prices and interest rates increase, but the good news is that interest rates have softened during the summer. As inflation tapers into the winter months, interest rates will continue to soften slightly.
“There is nothing to indicate that housing prices will collapse.”
As my favorite saying goes, “Marry the house, date the rate.” Now that inventory has increased during the summer, the house that you love may become available. You may not like the rate that you’re locked in, but you can always refinance in the future once rates go down.
The best time to buy a home was 20 years ago; the second best time is now. Your home will be worth more in the future than what you paid today. Even those who bought from 2006 to 2008 have tons of equity because the housing market eventually corrects itself.
If you have more questions about this topic or have any real estate concerns, don’t hesitate to call or email me. I’m always happy to help!
Introducing Our Whole Team
The people who will help you navigate the market and get you a great deal.
Today we want to introduce our entire team to you and tell you a little bit about where we’re from, what we’ve done in our careers, and what our roles are. Feel free to skip around the video and meet the whole team.
If you have any questions, we’d love to help you, so reach out to us by phone or email. We look forward to hearing from you and helping you achieve your real estate goals.
What’s Happening in Our Market?
Here’s what you need to know about our different housing markets.
What’s happening in the housing markets we serve? The San Diego, Houston, Tucson, and Austin market statistics from September are in, and we can’t wait to share them with you. After, there is a very important piece of market wisdom we learned recently that could really make or break your buying or selling plans.
You can listen to our full market breakdown in the video above or skip to each topic using the timestamps provided:
0:00 — Introduction
1:23 — How are our markets changing?
3:21 — Prices remain strong in our markets
4:43 — How much are home prices going to fall?
6:08 — Homeowners have tons of equity, and supply remains relatively low
8:38 — Home sales are down but still high
10:56 — Affordability is getting worse
13:01 — There’s a lot of uncertainty in our market
14:46 — Is it still a good time to buy a home?
17:34 — The options of where our market is heading
19:00 — If the economy takes a turn, there’s no point in waiting
22:30 — Wrapping things up
If you have questions about this topic or anything else, please call or email us. We are always willing to help!
From the Bottom of Our Hearts: Thank You
We couldn’t be more thankful for our clients this Thanksgiving.
It’s almost Thanksgiving, so today, I want to talk a little bit about gratitude. Sincerely, I want to say thank you. Without your support, without the help, the referrals, and the trust from people like you, our real estate business wouldn’t exist.
In fact, we’ve helped over 100 families in a very chaotic real estate market find a new place to call home this year. That doesn’t happen without referrals and trust from great clients like you.
Even if you haven’t worked with us before, we’re still grateful for you because gratitude is contagious. I know from life that the more you’re grateful for, the more you’ll have an opportunity to be grateful for.
Spend time with your loved ones. Think about the things that are positive in your life because I’m sure there’s a lot to be thankful for. If you have questions about real estate or just want to talk, please call or email me. I’d love to help you.