Welcome to the fourth week of May. A little reprieve from the heat seems to be in our future for this upcoming Memorial weekend. May we all take a moment this weekend with our family and friends to remember, honor, and appreciate the American heroes who made the ultimate sacrifice. The real estate market feels like this ever changing weather right now...hot, cool, hot, cool. We have this looming debt ceiling casting a cloud over the economy right now, and it is affecting the interest rates. We are approaching 7% mortgage rates again. Just when things look to be taking a positive step forward something new pops up. Which, maybe in a way is a good thing to help stabilize the market and keep it from becoming too unhealthy like in 2021. I still believe we are close to a mortgage rate peak, and I definitely believe this debt ceiling will be resolved. So, how do we approach this market? Well, not much changes. There still is not enough houses for sale, which makes it incredibly advantageous if one is considering a home sale. On the buy side, there are two approaches. Find a home on the older side of the market and go after it with a lower price offer or speaking with a lender about a 2 for 1 buydown loan option. This leads me into the second approach for a buyer which is to check out some of the new build communities in our area. Builders are loving this environment right now, as the demand is there, and they can afford to offer buy down credits as well as other credits right now in this market. Lumber prices have come back down to reality, along with other construction materials which has provided the builders with some much needed margin increases. This in turn allows them to offer all kinds of different incentives to sell through their completed homes quickly. Take a look at homebuilder stocks, you'll see. If you'd like to tour some new communities, or want a list of some of my favorites right now, just let me know! What are you seeing or hearing? I'd love to know paul@guiderealestate.com |
