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My team and I are loving every minute of this summer season. Our phones have been ringing off the hook, and buyers have been banging down our doors. Don’t get caught up in the idea that because the overall economy isn’t doing well, our real estate market will follow suit. Right now, the opposite is happening. The economy’s not so hot, but the housing market is booming.
Since the beginning of January, mortgage rates have fallen by .5%. The Brexit will probably keep those rates down for some period of time, but that is no guarantee. Mortgage rate projections show that interest rates will creep up over the next 12 months and, at that same time, interest rates will be almost a full point higher. No one knows for sure, but I wouldn’t guarantee that the great rates we’re seeing now will still be there six months or a year down the line.
There was a slight drop in the last pending home sales report, and it caused quite a concern among the talking heads on all the news channels. But this concern is much ado about nothing, because this dip will fix itself. If we look at the buyer traffic by state, we see both buyer traffic and demand for housing has remained very strong. The reason the pending home sales numbers went down is because there wasn’t enough buyer traffic. In the majority of the country, however, the rate of seller traffic also dropped off dramatically. In other words, the reason for the dip was inventory, not demand.
Is now a good time to sell your home? Yes it is! The rate of housing supply in May dropped almost 10%, meaning there is an increase in the number of people looking to buy a house and a decrease in the number of homes available for sale. While prices are continuing to increase, those interest rates will eventually begin to creep back up. Once that happens, buyers won’t be able to offer you as much money as they can right now.
If any of this gets you excited, pick up the phone and call me so we can work together to sell your home fast and keep money in your pocket where it belongs. Keep enjoying your summer, and we’ll see you back here in a few weeks!