Interest Rates vs. Property Values

This has certainly been the biggest issue in real estate for the last year, or more..

The interest rates went from around 2.5% to around 7.5% on 30 year fixed mortgages, in just over a year.  Only the Government could do something so stupid!  Of course, this stalled the market.  Nationwide, in 2023 approximately one third fewer homes were sold than in 2022.  That’s huge! In Washington State, we saw prices decline as a result of the sharp increase in interest rates.  Buyers couldn’t afford as much for a house and the overwhelming sentiment was that it was a “Buyer’s Market”.  Statistically, this wasn’t true.  We had a shortage of homes, which should have caused it to be a “Seller’s Market” with price increases.  But that just didn’t happen.  Overall, house prices dropped approximately 9% in 2023.

As we enter 2024, the big question becomes….  “What’s next?”

Every article I read seems to have the same, or at least similar, predictions for 2024…..  The interest rates will come down, probably to as low as 6% on a 30 year fixed mortgage in 2024.  This trend has already begun.  We have seen rates come down for the last several weeks, by the tiniest amounts per week.  Yay! What does this mean for you?

As interest rates come down, there will be a surge in Home Buyers entering the market.  This has already begun in Washington State.  We are currently seeing new sales out-pacing new listings by nearly 2 to 1. – For every new listing coming on the market, two houses are selling.  This ratio can’t last long because there aren’t very many houses left on the market.  So, what’s next is very likely to be increasing prices and the return of bidding wars. The smart money says Buy Now!  Even though the rates aren’t great…  Buying before the surge in prices locks in the amount you pay for the house.  Afterward, as rates come down, you could refinance.

Buying a house is a competition.

The winner gets a house.

There are no points for second place.

Work with a time proven winner!

I've been helping people buy and sell homes for over 20 years now.

Call me today at 360-708-2929.

For me to do my best for you, determining your needs, wants, and resources is paramount! So too is knowing your deal-breakers.

In the real estate game, the winner gets a house, and the loser doesn’t. There are no points for 2nd place.

Knowing and using every strength, skill and tool at the right time can be the difference between winning and losing a home. Buying a home is a competition and I will help you play to win.

Doing it right doesn’t guarantee that you’ll win every offer you submit. However, it does position your offer ahead of those that didn’t come prepared.

By putting your trust in a qualified professional, you increase your odds of getting the most for your money, with the least amount of inconvenience, in the shortest time possible.

Clarifying your purpose and priorities are steps one and two. Step three is getting your pre-approval.

I’m qualified, I’m committed, and I’ll have your back through the entire process.

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Bill Sauneuf

John L. Scott Real Estate / Yelm

106 NE Plaza Dr., Suite B1 Yelm, WA 98597

Call / Text Direct at: 360-708-2929

Email: [email protected]

https://www.RealEstateYelm.com

LISTING AT FAIR VALUE

As a Real Estate Agent, I always talk to sellers about listing their property at fair value.

I usually suggest a range with a $20-30K swing…

…and most sellers like the higher price point.

I tend to advise them to start at the bottom and open the door for a multiple offer situation...

…as this could set things up for final sale price above the top of the range.

Want some help figuring out a fair listing value for your home?

Call me at 360-708-2929!

Bill Sauneuf

John L. Scott Real Estate / Yelm

106 NE Plaza Dr., Suite B1 Yelm, WA 98597

Call / Text Direct at: 360-708-2929

Email: [email protected]

Amit Baruch

Sales Manager & Loan Consultant - NMLS# 505319

New American Funding

Call / Text Direct at: 206-786-9999

Email: [email protected]

Equal Housing Opportunity

WHAT IS THE RIGHT TIME TO SELL?!?

If you are a seller, it is always a good time to sell a home…

…and go buy the next one in the same market.

Transactions tend to balance each other out when you are party to both sides of the market…

…selling through one transaction and buying through the next.

This of course can vary…

…if the transactions take place in geographically distant markets.

If you keep the transactions in the same local market…

…there is simply no bad time to get it done.

Want some help figuring out…

…how to set yourself up for success?

Call me at 360-708-2929!

Bill Sauneuf John L. Scott Real Estate / Yelm

106 NE Plaza Dr., Suite B1 Yelm, WA 98597

Call / Text Direct at: 360-708-2929

Email: [email protected]

Amit Baruch Sales Manager & Loan Consultant - NMLS# 505319

New American Funding

Call / Text Direct at: 206-786-9999

Email: [email protected]

Equal Housing Opportunity

Builders Love Two-Story Homes

One story house is cost more per square foot than two store houses. They just do.

They cost more to build. There's a bigger roof, a bigger foundation. It takes a larger piece of property to build a one-story house on.

So, the builders generally don't like them, and they don't want to build them. They want to build a two-story house because they can put more two-story houses on a plot of land. More houses equals more money.

The Seniors are having a problem with this because as you know our population is getting older as the ‘Boomers’ age up. They all seem to want one-story houses.

So, for the builders that are building one story houses… Good move!

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Amit Baruch and I have been friends in and out the real estate industry for over 20 years. He is a first rate lender and a great person! His mortgage lending office recently set up an in-house podcast studio with all of the bells and whistles and Amit invited me up to Kirkland to do a podcast! This was a combined "Yay!" and "Oh Shit!" experience for me as I've never done anything like this before. Fortunately for me, I had my friend Amit there to walk me through it. Just like he does with home loans, he helped make a very complicated thing into a simple thing. I hope you enjoy the podcast. Please let us know what you think of it in the comment section below.

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Here is Amit's contact information:

Amit Baruch

New American Funding Sales Manager / Loan Consultant

NMLS# 505319

Cell: 206-786-9999

Fax: 425-465-8000

Email: [email protected]

12220 113th Ave NE #120

Kirkland, WA 98034

Amit:

As a seasoned real estate broker, how do you separate yourself from the pack and deliver that quality and that value service to your buyers, or your sellers?

Bill:

Professional marketing. It's amazing how many people in this business don't understand marketing. They think “Oh, I'm going to sign a listing and miracles are supposed to just going to happen.”

It takes professional marketing. I’m making videos. I’m making postcards… Old school stuff still works.

The new-school stuff…. The videos still are working great.

I use photography to tell the story of a house. I use the video to give perspective. It’s how you show the flow around the house. The photography provides details.

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Amit Baruch and I have been friends in and out the real estate industry for over 20 years. He is a first rate lender and a great person! His mortgage lending office recently set up an in-house podcast studio with all of the bells and whistles and Amit invited me up to Kirkland to do a podcast! This was a combined "Yay!" and "Oh Shit!" experience for me as I've never done anything like this before. Fortunately for me, I had my friend Amit there to walk me through it. Just like he does with home loans, he helped make a very complicated thing into a simple thing.

I hope you enjoy the podcast. Please let us know what you think of it in the comment section below.

---------------

Here is Amit's contact information:

Amit Baruch

New American Funding Sales Manager / Loan Consultant

NMLS# 505319

Cell: 206-786-9999

Fax: 425-465-8000

Email: [email protected]

12220 113th Ave NE #120

Kirkland, WA 98034

I was recently asked “What advice would I give to a Buyer that is interested in getting into the real estate market?”

The first thing I would tell them is to not worry so much about the interest rates.

That's a hard pill for people to swallow because last year, interest rates were around 2 – 3 percent and now they're around 6 – 7 percent.

Again, that's certainly a hard pill to swallow, but when you're buying a house,you buy the house, but you only date the rate.

What that means is that you own the house and you're going to have that through all of this…

But a year or two later, you can refinance the loan, whenever the rates come down. So, if the rates suck now, in a year when they hopefully don't suck, you could have all the equity from the time you’ve owned the house and then refinance the loan to reduce the rate. Suddenly you’ve brought the payment down to where you wanted it…

…and you still have all the equity from having made the monthly mortgage payments as well as the increased value of the property. So, you’re that much farther ahead of where you would be if you waited to buy until the rates came down.

Mortgage payments help make you wealthy.

Rent payments make your landlord wealthy.

It’s as simple as that.

The Real Estate Market is heating up!

Spring Fever is here!

If you're thinking about Buying or Selling a house, call me today!

Market Update - May 2023 - with Amit Baruch of New American Funding

At the beginning of April, there were just over 8,000 active listings in the MLS.

This is up more than 70% from a year ago…

… and is also up just over 10% from the end of February.

Even with these gains, we still only have roughly six weeks of inventory.

This is well below the four to six months of inventory that most industry experts agree is a balanced market.

Overall, prices are still down approximately 7½ percent from a year ago as the market reacted to the big jump in interest rates.

Typically, low inventory means that prices rise, but that has simply not been the case for the last year or so.

We had a brief period, last month, where average interest rates dropped below 6% and there was a surge in sales.

Most experts agree that interest rates should stabilize and even come down a bit over the next six months. As the interest rates decline, I believe that home prices will stabilize.

---------------

Amit Baruch and I have been friends in and out the real estate industry for over 20 years. He is a first rate lender and a great person! His mortgage lending office recently set up an in-house podcast studio with all of the bells and whistles and Amit invited me up to Kirkland to do a podcast! This was a combined "Yay!" and "Oh Shit!" experience for me as I've never done anything like this before. Fortunately for me, I had my friend Amit there to walk me through it. Just like he does with home loans, he helped make a very complicated thing into a simple thing. I hope you enjoy the podcast. Please let us know what you think of it in the comment section below.

---------------

Here is Amit's contact information:

Amit Baruch

New American Funding Sales Manager / Loan Consultant

NMLS# 505319

Cell: 206-786-9999

Fax: 425-465-8000

Email: [email protected]

12220 113th Ave NE #120

Kirkland, WA 98034