When it comes to real estate and the real estate market, the news media often paints an incomplete picture. While this information can provide a broad overview of trends and patterns, it doesn't always accurately reflect what's happening in specific local markets. National statistics can sometimes paint a picture that doesn't align with the experiences of buyers, sellers, and investors in various regions. For instance, a national report might indicate a cooling housing market with slowing price growth and increasing inventory. However, this doesn't necessarily mean that your local market is experiencing the same trends. In many cities and towns across the country, real estate conditions can differ significantly due to factors such as local economic conditions, population growth, and housing supply constraints. Take, for example, a booming tech hub like Austin, Texas. Even if national data suggests a slowdown, Austin might still be seeing rapid price increases and high demand due to its strong job market and influx of new residents. Conversely, a city facing economic challenges may experience a much cooler market than what national averages suggest. It's also important to note that real estate is inherently hyper-local. Neighborhoods within the same city can have vastly different market dynamics. A downtown area with new developments might be thriving while suburban areas could be experiencing slower growth or even declines in property values. For those involved in real estate transactions or investments, relying solely on national media reports can lead to misguided decisions. Instead, it's crucial to consult local experts who understand the nuances of your specific market. Real estate agents, local appraisers, and regional economic reports provide invaluable insights that can help you make informed decisions tailored to your unique situation. In summary, while national media provides useful general information about the real estate market, it's essential to dig deeper into local data for an accurate understanding of your specific area's conditions. Always remember: real estate is local, and what happens nationally might not be happening in your neighborhood.

Over the past couple of years, a lot of people have had a hard time buying a home. And while affordability is still tight, there are signs it's getting a little better and might keep improving throughout the rest of the year. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:“Housing affordability is improving ever so modestly, but it is moving in the right direction.”Here’s a look at the latest data on the three biggest factors affecting home affordability: mortgage rates, home prices, and wages. 1. Mortgage RatesMortgage rates have been volatile this year, bouncing around from the mid-6% to low 7% range. But there's some good news. Data from Freddie Mac shows rates have been trending down overall since May (see graph below):Mortgage rates have improved lately in part because of recent economic, employment, and inflation data. Moving forward, some rate volatility is to be expected. But if future economic data continues to show signs of cooling, experts say mortgage rates could keep going down. Even a small drop can help you out. When rates decline, it's easier to afford the home you want because your monthly payment will be lower. Just don’t expect them to go back down to 3%.2. Home PricesThe second big thing to think about is home prices. Nationally, they’re still going up this year, but not as fast as they did a couple of years ago. The graph below uses home price data from Case-Shiller to illustrate that point:If you're thinking about buying a home, slower price growth is good news. Home prices went up a lot during the pandemic, making it hard for many people to buy. Now, with prices rising more slowly, buying a home may feel less out of reach. As Odeta Kushi, Deputy Chief Economist at First American, says: “While housing affordability is low for potential first-time home buyers, slowing price appreciation and lower mortgage rates could help – so the dream of homeownership isn’t boarded up just yet.”3. WagesAnother factor helping with affordability is rising wages. The graph below uses data from the Bureau of Labor Statistics (BLS) to show how wages have increased over time:Look at the blue dotted line. It shows how wages usually go up in a typical year. On the right side of the graph, you'll see wages are rising even faster than normal right now – that's the green line.This helps you because if your income increases, it's easier to afford a home. That’s because you won't have to spend as much of your paycheck on your monthly mortgage payment.Bottom LineWhen you put all these factors together, you see mortgage rates are trending down, home prices are rising more slowly, and wages are going up faster than usual. Though affordability is still a challenge, these trends are early signs things might be starting to improve.

Helpful Negotiation Tactics for Today’s Housing Market If you haven’t already heard, homebuyers are regaining some negotiating power in today’s market. And while that doesn’t make this a buyer’s market, it does mean buyers may be able to ask for a little more. So, sellers need to be ready for that possibility and know what they’re willing to negotiate. Whether you’re looking to buy or sell a house, here’s a quick rundown of potential negotiations that may pop up during your transaction. That way, you’re prepared no matter which side of the deal you’re on. What Can You Negotiate? Most things in a home purchase are on the negotiation table. Here’s a list of just a few of those options, according to Kiplinger and LendingTree: Sale Price: The most obvious is the price of the home. And that lever is being pulled more often today. Buyers don’t want to overpay when affordability is already so tight. And sellers who aren’t realistic about their asking price may have to consider adjusting their price. Home Repairs: Based on the inspection, a buyer is within their rights to ask the seller to make reasonable repairs. If the seller doesn’t want to do that, they could offer to reduce the home price or cover some closing costs, so the buyer has the money to take them on themselves. Fixtures: Buyers can also ask for appliances or furniture to convey when the house changes hands. Having the seller throw in the washer and dryer cuts down on expenses the buyer would have when moving in. As the seller, you could leave your existing ones behind to sweeten the deal for your buyer, and get yourself new ones for your next place. Closing Costs: Closing costs typically run about 2-5% of the home’s purchase price. Buyers can ask the seller to pay for some or all of these expenses to offset the cash the buyer has to bring to the table.  Home Warranties: Buyers can also ask the seller to pay for a home warranty. This is great for buyers worried about the maintenance costs that may pop up after taking possession of the home. And since this concession usually isn’t terribly expensive for the seller, it can be a good option for both parties. Closing Date: Buyers can ask for a faster or extended closing window based on their own timetable. The seller can also advocate for what they need based on their move to find the right compromise. One thing is true whether you’re a buyer or a seller, and that’s how much your agent can help you throughout the process. Your agent is your go-to for any back-and-forth. They’ll handle the conversations and advocate for your best interests along the way. As Bankrate says: “Agents have expert negotiating skills. Without one, you must negotiate the terms of the contract on your own.” They may also be able to uncover what the buyer or seller is looking for in their discussions with the other agent. And that insight can be really valuable at the negotiation table.  Bottom Line Buyers are regaining a bit of negotiation power in today’s market. Buyers, knowing what levers you can pull will help you feel confident and empowered going into your purchase. Sellers, having a heads up of what they may ask for gives you the chance to think through what you’ll be willing to offer. Want to chat more about what to expect and the options you have? Let’s connect. 

How the Economy Impacts Mortgage Rates As someone who’s thinking about buying or selling a home, you’re probably paying close attention to mortgage rates – and wondering what's ahead. One thing that can affect mortgage rates is the Federal Funds Rate, which influences how much it costs banks to borrow money from each other. While the Federal Reserve (the Fed) doesn’t directly control mortgage rates, they do control the Federal Funds Rate. The relationship between the two is why people have been watching closely to see when the Fed might lower the Federal Funds Rate. Whenever they do, that’ll put downward pressure on mortgage rates. The Fed meets next week, and three of the most important metrics they’ll look at as they make their decision are: The Rate of Inflation How Many Jobs the Economy Is Adding The Unemployment Rate Here’s the latest data on all three. 1. The Rate of Inflation You’ve probably heard a lot about inflation over the past year or two – and you’ve likely felt it whenever you’ve gone to buy just about anything. That’s because high inflation means prices have been going up quickly. The Fed has stated its goal is to get the rate of inflation back down to 2%. Right now, it’s still higher than that, but moving in the right direction (see graph below): 2. How Many Jobs the Economy Is Adding The Fed is also watching how many new jobs are created each month. They want to see job growth slow down consistently before taking any action on the Federal Funds Rate. If fewer jobs are created, it means the economy is still strong but cooling a bit – which is their goal. That appears to be exactly what’s happening now. Inman says: “. . . the Bureau of Labor Statistics reported that employers added fewer jobs in April and May than previously thought and that hiring by private companies was sluggish in June.” So, while employers are still adding jobs, they’re not adding as many as before. That’s an indicator the economy is slowing down after being overheated for quite some time. This is an encouraging trend for the Fed to see. 3. The Unemployment Rate The unemployment rate is the percentage of people who want to work but can’t find jobs. So, a low rate means a lot of Americans are employed. That’s a good thing for many people. But it can also lead to higher inflation because more people working means more spending – which drives up prices. Right now, the unemployment rate is low, but it’s been rising slowly over the past few months (see graph below): It may seem harsh, but a consistently rising unemployment rate is something the Fed needs to see before deciding to cut the Federal Funds Rate. That’s because a higher unemployment rate would mean reduced spending, and that would help get inflation back under control. What Does This Mean Moving Forward? While mortgage rates are going to continue to be volatile in the days and months ahead, these are signs the economy is headed in the direction the Fed wants to see. But even with that, it’s unlikely they'll cut the Federal Funds Rate when they meet next week. Jerome Powell, Chair of the Federal Reserve, recently said: “We want to be more confident that inflation is moving sustainably down toward 2% before we start the process of reducing or loosening policy.” Basically, we’re seeing the first signs now, but they need more data and more time to feel confident that this is a consistent trend. Assuming that direction continues, according to the CME FedWatch Tool, experts say there’s a projected 96.1% chance the Fed will lower the Federal Funds Rate at their September meeting. Remember, the Fed doesn’t directly set mortgage rates. It’s just that whenever they decide to cut the Federal Funds Rate, mortgage rates should respond. Of course, the timing of when the Fed takes action could change because of new economic reports, world events, and other factors. That’s why it's usually not a good idea to try to time the market. Bottom Line Recent economic data may signal that hope is on the horizon for mortgage rates. Let’s connect so you have an expert to keep you up to date on the latest trends and what they mean for you.

As we step into the promising landscape of 2024, prospective homebuyers and real estate enthusiasts eagerly anticipate the trends that will shape the housing market in the coming months. Recent insights from BAM media, a reputable source for real estate and economic data, paint a picture of stability in the housing sector. According to their reports, economists are not foreseeing significant changes in housing prices, predicting mortgage rates to decrease slightly while hovering around the 6% mark. An intriguing twist to the narrative is the anticipated increase in the number of home sales. In this blog post, we'll delve into the data provided by BAM and explore what these trends mean for both buyers and sellers in the 2024 housing market. Stable Housing Prices: One of the key takeaways from BAM Socials' data is the expectation of stability in housing prices throughout 2024. After a period of fluctuations and uncertainties, the market appears to be entering a more balanced phase. This steadiness can be seen as a positive sign for both buyers and sellers. Buyers can plan their investments with more confidence, knowing that they are less likely to encounter sudden spikes in prices. On the other hand, sellers can expect a reasonable return on their properties without the pressure of aggressive market fluctuations.  Mortgage Rates: A Mild Decline: The data from BAM suggests a modest decrease in mortgage rates, with experts predicting rates to stay in the vicinity of 6%. While this might not signal a drastic shift, even a slight dip in mortgage rates can have a significant impact on affordability for potential homebuyers. Lower rates mean lower monthly payments, making homeownership more accessible to a broader range of individuals. This favorable environment could stimulate increased demand in the housing market, setting the stage for a more dynamic year ahead. Increasing Home Sales: Perhaps one of the most exciting revelations in the BAM data is the projection of a rise in the number of home sales. This surge in activity could be attributed to various factors, including the stable pricing environment and slightly reduced mortgage rates. As confidence in the market grows, more buyers may be inclined to make their move, leading to a more active and competitive real estate landscape. Implications for Buyers and Sellers: For potential homebuyers, the 2024 housing market presents a window of opportunity. With stable prices and slightly lower mortgage rates, this could be an ideal time to enter the market. However, it's crucial for buyers to act swiftly, as increasing home sales may lead to heightened competition for desirable properties. Sellers, on the other hand, can leverage the stability in pricing to list their homes with confidence. While the market may not be experiencing a rapid surge in prices, the consistency allows for strategic planning and informed decision-making. Conclusion: The 2024 housing market, as outlined by BAM data, paints a picture of stability, moderate declines in mortgage rates, and a surge in home sales. For those navigating the real estate landscape, these trends offer a favorable environment for both buying and selling. As always, it's crucial for individuals to stay informed, work with reputable real estate professionals, and make decisions that align with their long-term goals. The year ahead holds promise for the housing market, and with careful consideration, both buyers and sellers can make the most of the opportunities presented.

When is your time? Deciding when it is the right time to move can be a daunting task. Whether you are a buyer or a seller, there are several factors to consider before making the big decision. In this blog, we will discuss how to determine the right time for you and whether it is best to buy or sell when rates are falling. For buyers, the decision to move often stems from various reasons such as outgrowing their current home, relocating for work, or simply wanting a change of scenery. Determining when it is the right time depends on personal circumstances and preferences. Some buyers might be driven by the availability of properties that fit their needs, while others might be motivated by favorable market conditions, such as low-interest rates or reduced housing prices. On the other hand, sellers may consider moving if they have a desire to upgrade or downsize, or if they are looking to capitalize on the current market conditions. Sellers often gauge the right time based on factors like the state of the local real estate market, the demand for properties like theirs, and their financial goals. It is essential to consider these elements before deciding to list your property. One critical aspect that influences the decision-making process for both buyers and sellers is the market update. Staying informed about the current state of the real estate market is crucial for making an educated decision. By keeping an eye on trends, you can determine whether the market favors buyers or sellers. For instance, if the market is experiencing low inventory levels and high demand, it may be a seller's market, leading to higher prices and potentially quicker sales. Conversely, in a buyer's market with ample inventory and less demand, buyers can have more negotiating power and potentially find better deals. Now, let's address the question: should you buy or sell when rates are falling? Falling interest rates typically make borrowing more affordable, which can be advantageous for buyers. Lower rates translate into lower monthly mortgage payments and potentially allow for a larger loan amount. For sellers, however, falling rates might not necessarily have a significant impact on their decision to sell. Other factors such as market conditions, personal circumstances, and financial goals play a more prominent role. In conclusion, deciding when it is the right time to move depends on individual circumstances and preferences. Buyers should consider factors like availability and market conditions, while sellers should assess the state of the local real estate market and their financial goals. Lastly, falling interest rates can be beneficial for buyers, but sellers should focus more on other elements when making their decision. Ultimately, consulting with a knowledgeable real estate agent can provide invaluable guidance in navigating these complex decisions.