Wasn’t the market supposed to crash when interest rates rose?
Rates are now at 4.5%.
People are paying $625/month more for a $500k mortgage than they were a year ago.
So why aren’t homes taking longer to sell? Why aren’t prices coming down?
More people need homes in America than at any point in our history.
This person sold their home to an ibuyer, in this case Offerpad, for $755,000. It never went on the market.
Offerpad then put it on market a few weeks later and sold it for another $112,000 without putting a dime into it other than a professional cleaning.
If you’re wondering how much your home is worth, an ibuyer, or anyone else who is looking to flip it is probably not your best option.
This is something I hear my clients say frequently and you just can't push them in these situations. Maybe they'll get the house, maybe not. But you gotta go at their pace and make sure they have time to test the waters and see what happens when they make an offer. That often means writing three or four unsuccessfully but every so often we get lucky and it's one and done. I'm feeling lucky today.
With the market moving so fast, when looking at comparable sales, the time that has elapsed since a home sold has become a huge factor that should be accounted for.
How much are mortgage closing costs? A good rule of thumb is 1.25%-1.5% of the loan amount.
But that’s not the whole story. You can reduce your closing costs by choosing a rate that’s higher than what today's rate “par” rate is and the lender will give you a credit that you can use to reduce your costs.
We have reached all-time lows in inventory despite significant mortgage rate increases. Rates are now bouncing around 3.6-3.9%. It’s important for buyers to note there is the same number of homes coming on the market each month as there were 10 years ago. They are just getting purchased more quickly by a pool of buyers that is larger than we have ever seen in history. This large buyer pool is simply a function of demographics: there are more people in the prime home-buying age bracket (late 20s to early 40s) than there has ever been. Interest rates add fuel to the fire. But demographics are the foundation of the persistent supply shortage.
Links to County GIS maps are a great tool to have saved in your phone as you’re shopping for homes, especially acreage property.
They provide info that your phone’s GPS does not.
They help you understand where lot boundaries are and can sometimes identify encroachments without have to spend hundreds or thousands on a survey.
They are not as precise as a survey but are great for general info.
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