"Get In or Get Out Time" is Hitting the Real Estate Market!
Too Many Indicators Say "Get Off The Fence"
Summer is at your doorstep, and I mean to be blunt and urgent, but not pushy: You are in the market to buy a home, or sell your home, or you're out of the market, starting pretty much as soon as you read this. The current market conditions are already making this happen, and the summer peak of the market is still months away. A year's worth of uptick in prices, including recent local sales of homes well and above asking price, tell me it's a growth market for sellers. There is urgency for sellers, specifically, because the conditions of this market are unique and inevitably short lived. The residential building permits being issued at a rate not seen in nearly six years indicates to me that this upward tick in home prices will eventually level off, but probably not in time for mortgage interest rates to remain as low as they are now. The eventual mortgage rate increase is an obvious, looming urgency for buyers and it is two-fold: homes aren't likely to come down in price (even if home prices do increase at a slower rate due to increasing inventory) and rates are likely to go up. Put another way, a buyer's ideal home which presents an affordable payment today may literally not be affordable within a week. Everything about the current real estate market is pointing to a frenzied, fast-paced, win-win whirlwind of a summer.
There is no room on the fence, to again put it bluntly, homeowners and future homeowners who want to grab a piece of this very rare market and the benefits which pertain to it need to do so immediately. Cash offers/investors are still common, but mortgage lenders are lending again, provided borrowers/buyers can jump through the many additional hoops and safeguards now in place. Buyers who qualify can qualify for more of a home by way of the lower payment available for not much longer as mortgage rates will with certainty be rising even more than in recent days. Sellers can take advantage of a significant rise in equity before it levels off, and while they themselves can still capture a still-ridiculously-low mortgage rate. For the first time in my blog I'm speaking to both buyer and seller more directly than ever before because the market is demanding immediate action: If you were considering buying, get started now! If you were considering selling, get started now!
I will be having a different conversation with clients, and a different discussion on this blog, in three month's time, of this I am certain. Among my many mortgage banking friends and the experts I follow regularly, all seem to agree that at best, mortgage rates will rise consistently before the end of the year and may downtick briefly by around this time next year or slightly earlier, but not long enough to have the impact low mortgage rates are having at this very moment; with all the other dramatic circumstances surrounding them. There are many conversations to have at any given time (even the worst of times, as we've had until last year) in real estate, and when it comes to the American Dream it ultimately knows no interest rate (relatively speaking), but today's conversation is unparalleled and speaks very loudly toward action. Fence sitters, observers and the watchtower vigilant observers of the real estate market, let me help you get down and get going; if you have had reason enough to watch what is happening, you know the time is now to be a doer and not merely a watcher.
Ann Stefanucci
714-822-9453
annstefanucci@gmail.com
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