ON THE MOVE!                                                     November 2023

Hello Friends, I would like to share information provided by one of our local Lenders and talk to you about some projections that I’m hearing. Of course, I am not a financial advisor or lending professional, so as always consult with your appropriate professionals.

 

We would all love to have insight into the future. Right? The National Association of Realtors released an article by Jessica Lautz, deputy chief economist with the NAR anticipating that rates will slowly be cut in the later part of 2024. The expectation is that there will be a pent-up demand for properties in a market with lower inventory. As always with supply/demand, the purchase price will once again increase as Buyers have more purchasing power. https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-november-16-2023

 

Partnering with the right Lender programs can make the difference in the affordability for Buyers and possibly shorter days on market with quicker close for Sellers. Sellers who are willing to provide Seller’s Concessions in the way of a Buy Down will reduce the Buyer’s mortgage payment until the Buyer can refinance. Depending upon the specific Lender’s program and your down payment, it could translate into payments up to $500 less a month for the Buyer with reasonable concessions from the Seller.

 

It is increasingly more important to find the right Real Estate Agent to help Seller’s and Buyer’s navigate through this changing market. Are Buy Down’s necessary to move your property and what is the appropriate pricing strategy? Does the Buyer need to shop Lenders and negotiate Buy Down’s to improve their purchasing power and what does that look like? Should you wait to sell your property and should you wait to buy? There is no perfect answer. It depends. Most suggest that residential Buyers should buy now once they find the right property with the best available terms. Refinance later to hedge the anticipated increase in home prices.

 

Good news, there was a slight uptick in mortgage applications in November due to a ¼ of a percent drop on 30-year fixed rate mortgages according to Freddie Mac Chief Economist, Sam Khater. https://www.freddiemac.com/research/forecast/20231121-economic-growth-remained-strong-in-q3

Investors (cash buyers / large downs) are looking for the best place to make their money work for them. Vacation rental and long-term rentals continue to remain strong in returns. For those investors, BUY! Let me help you in finding the right properties with the best cash-to-cash return. Wishing you all a continued Blessed Holiday Season.

See you next month!

Debbie