Mid-Q3 saw a slowdown in Real Estate activity, while the housing market experienced rising prices and decreasing inventorySales and Inventory:
New Listings: ↓7% to 16,054
Pending Sales: ↓15% to 10,640
Closed Sales: ↓12% to 11,468
Inventoary: ↓4% to 27,387
Prices and Days on Market:
Median Sales Price: ↑3% to $356,688
Average Sales Price: ↑6% to $427,639
Days on Market: 35
Last week, US mortgage rates topped 7.5%, the most since mid-August, and applications for home purchases tumbled to a multi-decade low. This illustrates the battered housing market, caused by aggressive interest-rate hikes by the Federal Reserve, soaring bond yields, and rising mortgage rates and home prices. This has created one of the most unaffordable housing markets on record. The Federal Reserve is likely to keep interest rates elevated for the foreseeable future to tame inflation.
Mortgage rates have recently hit a two-decade high, with the 30-year fixed-rate average at 7.87%, the 15-year rate average at 7.18%, and the jumbo 30-year rate at 7.15%. It is important to shop around for the best mortgage option and compare rates regularly, as refinancing rates have moved differently from new purchase rates.
Home inspections are crucial in Georgia to assess a property's condition, uncover potential issues, and negotiate repairs or credits.Specialized inspections like radon testing and sewer scopes are recommended, especially in areas with elevated radon levels.
Home inspections are not required in Georgia but are highly recommended, and it's wise to hire licensed and certified inspectors.a
Experts generally rule out a housing market crash in Georgia.
Fewer new listings and closed sales indicate a cooling market.
High demand continues to push prices upward.
If you recall the 2008 housing meltdown, you may recall how popular adjustable-rate mortgages, (also known as an ARM). And, after years of being nearly nonexistent, ARMs are becoming increasingly popular when buying a home. Let’s look at why this is happening and why it’s not a cause for alarm.
This graph uses Mortgage Bankers Association (MBA) data to demonstrate how the share of adjustable-rate mortgages has increased in recent years:
As shown in the data, after hovering around 3% of all mortgages in 2021, many more homeowners switched back to adjustable-rate mortgages last year. That growth has a straightforward reason. Mortgage rates increased considerably last year. With rising borrowing rates, several homeowners chose this sort of loan since standard borrowing prices were high, and an ARM provided them with a lower rate.
To put things into perspective, keep in mind that these aren’t the ARMs that were popular in the run-up to 2008. Loose lending rules contributed to the housing meltdown. When a buyer obtained an ARM, banks and lenders did not check verification of employment, assets, income, and so forth, people could get a loan without having to prove anything! Essentially, people were receiving loans that they should not have received. Many homeowners were put in jeopardy as a result of their inability to repay loans for which they were never required to qualify in the first place.
Lending requirements are different this time. Banks and lenders learned from the crash, and they now verify income, assets, employment, and other information. This implies that today’s buyers must qualify for their loans and demonstrate their ability to repay them.
CoreLogic Economist Archana Pradhan outlines the difference between then and now:
“Around 60% of Adjustable-Rate Mortgages (ARM) that were originated in 2007 were low- or no-documentation loans . . . Similarly, in 2005, 29% of ARM borrowers had credit scores below 640 . . . Currently, almost all conventional loans, including both ARMs and Fixed-Rate Mortgages, require full documentation, are amortized, and are made to borrowers with credit scores above 640.”
In plain terms, Laurie Goodman of the Urban Institute emphasizes this idea by saying:
“Today’s Adjustable-Rate Mortgages are no riskier than other mortgage products and their lower monthly payments could increase access to homeownership for more potential buyers.”
If you’re concerned that today’s adjustable-rate mortgages will be similar to those used during the housing meltdown, rest assured that things are different this time. If you have questions about buying or selling a home in the Metro Atlanta area, we’d be more than happy to help! Just reach out to us at (404) 410-6465 or visit Complete Realty Team. We look forward to speaking with you!
The housing market is expected to remain competitive by End-2023.
The housing market in October is not looking any different from the current market, with mortgage rates remaining high and limited inventory. Home prices are also expected to continue to rise, making it even more difficult for buyers to afford. However, despite the challenge, it is still possible to buy a home in October.
FSBO involves a series of steps that homeowners need to undertake independently.
FSBO is time-consuming, involving market analysis, home staging, marketing, negotiation, and legal tasks.Lack of Real Estate knowledge can lead to costly errors in understanding market trends, laws, and negotiation tactics.
Even if the housing market has calmed from the frenzy of the ‘unicorn’ years, it remains a seller’s market due to the scarcity of available properties. But what does this mean for you? And why are conditions so favorable today if you want to sell your home?
According to the National Association of Realtors’ (NAR) most recent Existing Home Sales Report, housing supply remains astoundingly low. The quantity of available properties on the market is used to calculate housing inventory. It is also quantified in months’ supply, which is the number of months required to sell all available properties based on current demand. A six-month supply is typical in a balanced market. At the present sales rate, we only have roughly 3 months’ supply of homes or less in some areas (see graph below):
Given the existing availability of properties, it’s still a seller’s market, as the graph illustrates.
We’re still a long way from having a balanced market. In reality, the current months’ supply is half of what a normal market would have. Based on current buyer demand, this indicates there simply aren’t enough properties to go around.
According to Lawrence Yun, NAR’s Chief Economist:
“There are simply not enough homes for sale. The market can easily absorb a doubling of inventory.”
Sellers, these conditions provide you a significant advantage. There are home buyers chomping at the bit that are ready, willing, and able to buy a home right now. And, because there are fewer homes for sale, those that do come on the market act as magnets for those buyers.
If you enlist the help of a local real estate agent to market your house, that’s in good condition, and priced correctly, it could attract a lot of interest. You may even receive many offers!
If you’re debating whether or not you should sell your home, well, you may not have another great opportunity as this for quite some time, it’s one of the most significant advantages you have right now. When housing availability is this limited, your home will stand out, particularly if it is reasonably priced. We can’t overstress that enough. With interest rates being so high buyers are NOT willing to overpay for a home.
However, there are some early indications that additional listings are on the way. According to the most recent data, new listings (homeowners who have recently listed their home for sale) are on the rise. Here’s why this is significant and what it might mean for you.
The spring buying season is well recognized to be the busiest time of year in the housing market. As a result, the number of newly listed residences increases predictably throughout the first half of the year. Sellers are bracing for this and preparing for the months when buyers are most active. However, when the school year begins and the holidays approach, the market cools. It’s to be anticipated.
But here’s the surprising part. According to the most recent Realtor.com data, there is an uptick in the amount of sellers advertising their homes later this year than typical. A high this late in the season is unusual. In the graph below, you can observe both the normal seasonal tendency and the extraordinary August:
According to Realtor.com:
“While inventory continues to be in short supply, August witnessed an unusual uptick in newly listed homes compared to July, hopefully signaling a return in seller activity heading toward the fall season . . .”
While this is only one month of data, it is noteworthy. It’s still too early to tell if this trend will continue, but if it does, you’ll want to be prepared.
If you’ve been putting off selling your home, this could be the perfect time. That’s because, if this tendency continues, the longer you wait, the more competition you’ll face. If your neighbor also lists their property for sale, you may have to compete for the attention of buyers with that other homeowner. If you sell today, you will be able to outbid your neighbors.
Even with more properties on the market, the market remains far below normal supply levels. And the inventory shortfall won’t fix itself overnight. The graph below helps put this into context, allowing you to realize the opportunities you still have right now:
You don’t want to wait for more competition to appear in your community, even if inventory is currently low. If you sell your house now, you will still have a fantastic chance. Let’s talk about the advantages of selling now, before more houses hit the market. If you’re ready to sell your house, have questions about what it’s worth or any other questions, just give us a call. You can reach us at (404) 410-6465 or visit Complete Realty Team. We look forward to hearing from you!
Home prices are expected to hold steady in 2023 before ↓ 2% in 2024.
As of mid-2023, the predicted recession has not materialized, and the economy is in a state of flux.
While there are signs of a slowdown, the forecast for a recession has been pushed further out.
Indigenous Peoples’ Day celebrates, recognizes, and honors the beautiful traditions and cultures of the Indigenous People
We take a stand for and support the indigenous people on this day.
We should also offer our support to those who invest and uplift the indigenous communities.
Developers are repurposing office spaces into homes due to housing shortages and office vacancies.
Mortgage interest rates [↑](color-green) 2X since 2021, now averaging 6.78% for a 30-yr fixed-rate loan.
Choosing the right mortgage lender is challenging due to numerous options and mortgage types.
Depersonalization:
Remove personal items to help buyers see themselves in the space, and hide personal names.
Wildfires are becoming more frequent and impactful in a warming climate.
Insurance companies are struggling to keep up with the rising costs of wildfire damage.
This is leading to a repricing of wildfire risk in the Real Estate market.
Real Estate sales can trigger capital gains tax based on profit earned.
Capital gains exclusion is available for primary residences.
Housing prices remained high in June due to low inventory and increased buyer demand.
Avg home sale price in June was $426K, close to the all-time high.
Jumbo mortgages are non-conforming loans that exceed the conforming loan limits established by the Federal Housing Finance Agency. They are primarily used to finance high-value properties, but come with stricter requirements, such as a higher credit score, lower debt-to-income ratio, and larger down payments. Despite these challenges, jumbo mortgages can be a powerful tool for financing luxury properties and homes in competitive markets. With the right guidance and expertise, navigating the world of jumbo mortgages can be done safely and successfully.
Buying and selling a home simultaneously can be a difficult process, but with the right planning and strategies, it is possible for many homeowners. There are several options to consider, such as a bridge loan, a contingency, and a post-closing occupancy agreement, each with their own advantages and disadvantages. It is important to consult an experienced professional to determine which option is best for your needs.
The Fed Paused its key interest rate at at its current range between 5.25% and 5.50%. Meanwhile a rate hike is expected on Fed next meeting on Oct 31- Nov 1.Officials cut forecasts for 2024 rate cuts, suggesting a "higher for longer" policy; benchmark rate above 5% by end of 2024.
Rent prices in the US ↑ 1.7% MoM in June and ↑ 3% since April.
The median rent is $2,029, ↓ 1.8% than the peak in August 2022 but ↑ 5% from February 2023.
The rental industry's slower pace of growth is attributed to new inventory.
A survey of 1.3K Real Estate investors reveals that 60% believe the US is facing a housing shortage.
80% of these investors are selling renovated homes at or above asking price, indicating strong demand.
