If the rates do drop and they could, we will face more inflation.
I hear people say, date the rate marry the house. We need a massive price decline to happen, leave the rates at
6 to 7. When selling you are not selling your mortgage, you are selling the house value. Wage growth has to go through the roof in order to afford housing. You will be seeing home values drop in the months to come.
You need to buy based on what you are paying in rent. If you are paying $2,000.00 in rent, we'll need to present offers based on your loan payment and taxes and insurance being equal to your rental payment. The reason rents are inflated and so high is due to the fact people can not afford buying a home, let alone maintaining the home.
We will be seeing unemployment going up as interest rates keep going up. I feel rates will be higher for longer. But, I also feel we need a massive decline in home prices, If you drop the rate even 1% at the prices homes are, it would not make that big of a dent in your monthly payment. Like the 2008 crash, sellers were bringing money to closing because they purchased an over priced home.
Do not be despertate, renting maybe the best option right now. Need to consider, costs. How's the furnace, How's the roof. Are you buying a money pit. The home depreciates, the land does not. Make rational decisions when buying. If I lose a sell based on telling you it's not a good buy, so be it. DON'T be despertate, it is you who makes the final decision, but my goal is to help you make rational decisions when renting, buying and selling real estate.
Seller's need to keep in mind...
Would you buy your house based on the same terms and conditions you're trying to sell it at. Try to put youself in the buyers shoes, don't be too stubborn, thinking you are still in the free money years of 3% interest rates. The video tells you why we are at a turning point. Don't be a bubble chaser, you and your home will be upside down.
Remenber when bubble chaser's had to bring money to closings during the aftermath of 2008 crash
There are buyers wanting to buy your house, but they also need to buy groceries...
The problem is in video above, the answer found in the laffer-curve, Click
Seller's need to negotiate on commission rates. Commission rates are negotiable. Don't be lead to believe commissions rates are 5% and 6% and don't be lead to believe you get better service for higher commission rates. Commissions are negtiable. Request lower commissions and pass that savings on to the buyer, don't hog it up for yourself, your property will sit for a while.
If you are going to give incentives as a seller, DO NOT GIVE THOSE INCENTIVES with higher commission rates to other brokerages, DON'T BE stupid! Do you really think agent's can sell ice to the eskimo's, if they try, they are not protecting the interest of their buyer. Give those incentives to the buyer prospect, not other agents or even me as your listing agent! Use common sense. Is the agent going to avoid showing other properties because there is more money given in a split, if so there's an ethic problem and possibly anti-trust violations and they are not looking after the interest of the buyer.
As a buyer you will also need to consider owner financing options. If you are doing a conventional loan, get out of debt, you need to be at 36% or lower debt to income rato.
Inflation will continue to go up, but what's crazy real estate prices are dropping as inflation goes up, FED purposely raising rates to lower housing demand while inflation continues at the gas pump, insurance rates, etc., crazy!!!
This market is crazy!!! FED's trying so hard to keep the inflation rate at 2% and it's not going to happen anytime soon. Logan is #8 in the nation for price reductions. Don't be hood-winked if someone tells you hury and buy before its too late, and if rates go down we'll give you a great refinance rate only IF they go down.
Need to make offers below asking price.
Need extra income while you sleep so you can keep up with inflation...
Consider non-financial instruments paying principle less interest. Similar to paper secured by real estate. Extra income with a rental property is not the answer. You should only buy rentals for write off's and equity growth, NOT TO BUY food, clothing, or personal home / rental payment, auto's etc., with rental proceeds. The fastest way to become a slumlord is to use the rent for stupid things other than the rental. The rental money belongs to the rental, it's not your money, the rents belong to the rental property. Need to understand the APOD, click You need 6 figure income to buy and its sad, click
Logan Utah is #8 in price reduction. With that in mind you need to make offers much less than appraisal-data from 6 months ago.
Business Insider...
"Following the big price changes during the last several years, it's natural to witness momentary swings in prices," Yun said in the report. "Some markets that experienced sizable home price gains since 2020 have turned lower, resulting in temporary relief for prospective home buyers."
Below are the 25 US metro areas where single-family home prices fell at least 1% from last year in the third quarter, as determined by the NAR. Along with each market is its year-over-year home-price change and the median home price in the second and third quarters of 2023, as well as the third quarter of 2022. See other data below not listed by going to Business Insider, Click to view other area data.
1. Austin
Year-over-year price change: -10.3%
Median home price in Q3 2023: $485,700
Median home price in Q2 2023: $496,300
Median home price in Q3 2022: $541,600
Source: National Association of Realtors
2. Honolulu
Year-over-year price change: -5.8%
Median home price in Q3 2023: $1,061,900
Median home price in Q2 2023: $1,060,700
Median home price in Q3 2022: $1,127,400
Source: National Association of Realtors
3. Jackson, Mississippi
Year-over-year price change: -4.8%
Median home price in Q3 2023: $234,200
Median home price in Q2 2023: $240,800
Median home price in Q3 2022: $246,000
Source: National Association of Realtors
4. Shreveport, Louisiana
Year-over-year price change: -4.6%
Median home price in Q3 2023: $210,500
Median home price in Q2 2023: $224,800
Median home price in Q3 2022: $220,600
Source: National Association of Realtors
5. Cape Coral, Florida
Year-over-year price change: -3.6%
Median home price in Q3 2023: $405,000
Median home price in Q2 2023: $439,000
Median home price in Q3 2022: $420,000
Source: National Association of Realtors
6. St. George, Utah
Year-over-year price change: -3.6%
Median home price in Q3 2023: $541,900
Median home price in Q2 2023: $548,000
Median home price in Q3 2022: $561,900
Source: National Association of Realtors
7. Provo, Utah
Year-over-year price change: -3.5%
Median home price in Q3 2023: $532,700
Median home price in Q2 2023: $520,300
Median home price in Q3 2022: $552,200
Source: National Association of Realtors
8. Logan, Utah
Year-over-year price change: -3.3%
Median home price in Q3 2023: $421,000
Median home price in Q2 2023: $440,600
Median home price in Q3 2022: $435,200
Source: National Association of Realtors
9. San Antonio
Year-over-year price change: -3.1%
Median home price in Q3 2023: $332,200
Median home price in Q2 2023: $334,100
Median home price in Q3 2022: $342,700
Source: National Association of Realtors
10. Baton Rouge, Louisiana
Year-over-year price change: -2.9%
Median home price in Q3 2023: $263,700
Median home price in Q2 2023: $268,600
Median home price in Q3 2022: $271,600
Source: National Association of Realtors
11. Kennewick, Washington
Year-over-year price change: -2.5%
Median home price in Q3 2023: $433,600
Median home price in Q2 2023: $428,900
Median home price in Q3 2022: $444,700
Source: National Association of Realtors
12. Macon, Georgia
Year-over-year price change: -2.4%
Median home price in Q3 2023: $219,200
Median home price in Q2 2023: $219,900
Median home price in Q3 2022: $224,600
Source: National Association of Realtors
23. Salt Lake City
Year-over-year price change: -1.2%
Median home price in Q3 2023: $554,500
Median home price in Q2 2023: $546,900
Median home price in Q3 2022: $561,200
Source: National Association of Realtors
I'm basing everything on the indicators, Click
As stated in a previous post, Click
The days are long gone for sellers to price their homes at pre sold 180 days data. Its over!!! If you're going to list, it needs to be about 30% to 40% below pre sold 180 day data. It's a limited buyers pool and you need to be rational when listing your property right the first time.
Don't get stuck on data chasing thinking your home is worth 180 day data. I experienced 1974-1980's , I experienced mid 1990's Tech-Bubble, 2008 Frank / Dodd lending bubble and sellers were bringing money to closing, because they were upside down bubble buyers.
I'm not going to lead you to think its a beautiful sunny day when I know different based on the indicators, Click If someone tell's you the real estate market is sunny and brite and they tell you, don't pay attention to whats behind the curtain, you'll need to peek behind that curtain.
As a buyer's agent and a seller's agent my goal is to help you make rational decisions when the elephant is in the room. Buyer's, make sure you are safe, you may need to stay on the sidelines and hold off buying. If you do buy make offers within your rental budget and remember houses depreciate land goes up. Be prepared to fix things when budgeting.
Whats Up Now.
