Happy Friday! I am sure you've heard the news. On Wednesday, the Fed raised rates another 0.25%. Most of us saw this coming, and it looks like the bank collapse didn't affect this round of hikes.
There is a feeling from Powell's announcement that maybe we don't need any more rate hikes. It's hard to know what's going to happen next and, to be perfectly honest, I am not letting it bother me. Of course I'll pay attention to it, but I am not letting it affect my day to day.
Existing Home Sales Finally Increase
According to the NAR, sales of existing homes rose 14.5% month over month in February, breaking a 12 month streak of declines. This is the largest increase since July 2020.
Check out the article here: https://www.cnbc.com/2023/03/21/february-home-sales-spike.html
Here are the main takeaways:
The median existing home price fell to $363,000, down to 0.2% year over year. That drop ended a 131 month streak of consecutive YoY increases, the longest streak on record.
Properties are spending an average of 34 days on market
Sales could have been higher, but inventory still remains a problem. Data shows only 980,000 homes for sale, which is about a two to three month supply of homes
MY TAKE:
I definitely feel like we are in a full buyer's market with a few exceptions, but more or less, it's a standoff between buyers and sellers. With homeowners locked in with low rates, and buyers knowing they have negotiation power, it's harder to make a deal. We have to really focus on the clients that are motivated on both sides, and not waste your time if a deal can't be done.
How Homebuying is Changing
Redfin released a report analyzing down payments and home purchases through the month of January. The typical homebuyer made a $42,000 down payment, the lowest level in nearly two years.
Check out the article here: https://www.redfin.com/news/down-payments-decline-all-cash-january-2023/
Here are other homebuying stats from January:
Nearly one in three home purchases were paid for with all cash, up 29.7% YoY. This is the highest share in nine years.
16% of home sales used an FHA loan, up 13.3% YoY. This is the highest share since April 2020
The share of sales using VA loans climbed to 7.5%, the highest level in more than two years.
MY TAKE:
Macroeconomic conditions have caused homebuyers to get creative. It's your responsibility as agents to help your clients understand what they can and can't afford. This is a great opportunity to reach out to Cheryl and other lenders to understand all the options that are available to your clients. I know several lenders and rely heavily on them for advice.
Fun and interesting links:
Check out Taylor Swift's real estate empire - https://nowbam.com/taylor-swifts-real-estate-empire/
Checklist to do before you sell your home in Spring - https://realestate.usnews.com/real-estate/articles/spring-cleaning-checklist-for-your-home
10 cities where a $100,000 salary goes the furthest - https://www.bloomberg.com/news/articles/2023-03-15/10-top-cities-where-100-000-salary-goes-the-furthest?sref=V4hDBprx#xj4y7vzkg
Top 200 tech products for real estate - https://www.prweb.com/releases/tech_200_highlights_best_in_class_real_estate_technology/prweb19232905.htm
Everything you need to know about zoning - https://reason.com/2023/03/19/the-zoning-theory-of-everything/
Keep the latest industry data in your back pocket with today's mortgage rates:
As always, feel free to reach out if you have any questions or if there is anything I can help with. Enjoy the weekend!
Thinking about moving? Call or text me today! 303-520-0070
I’d seriously enjoy having the opportunity to talk to you about your plans if you’re moving, or if you know someone who is considering a move, and needs some straight answers.
Also, I’m never too busy for your referrals. As a real estate professional intent on giving back to the community, my relationship-based approach is exactly what you’ve been looking for in a helpful RE/MAX Professional.
Zachary Epps
GRI®, ABR®, MCNE®, CLHMS®, SRES®, REALTOR®,
RE/MAX Hall of Fame, RE/MAX Platinum Club