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  • Writer's pictureZachary Epps

Fed Raises Rates Again... slightly

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.



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.



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

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