Home prices have declined recently so we are telling our buyers to marry the house and date the rate. We don’t see major price declines going forward because we have a housing production deficit that has kept supply at bay.
Back in 2005 we had an oversupply of homes. Today we have an undersupply. Rising rates have made homes less affordable than they were 6 months ago but it doesn’t change the fact that we are short on housing inventory. For this reason, we do not see home prices declining off the charts.
The Ellis Team Current Market Index has leveled off the past 4 weeks showing stabilization in the market. For those who do not remember, the Ellis Team Current Market Index accurately predicts the future direction of the real estate market.
We’ve written how real estate is a great hedge against inflation and historically a better investment than the stock market. The sooner people get into a home the quicker that home can start working for them financially. While none of us like the fact that rates have risen, we cannot change that. We can lock-in a home to protect ourselves financially and refinance the home when rates go down later. We need a place to live anyway.
New Program
FNMA predicts that interest rates will average 4.5% next year and fall to about 4.4% in the 2nd half of the year. We have a program whereby a buyer can purchase a home today from us and refinance later when the rates go down with zero lender fees. This saves the borrower so much money on interest and in closing costs when they refinance.
The Ellis Team at Keller Williams also has a program that will save home buyers closing costs when they purchase and get a mortgage. We can offer that same zero lender fee loan on the purchase.
As inflation goes on the cost of building a new home is not going down. We know the nation has underproduced housing for over a decade. It makes sense to get into a home sooner rather than later, even if the rates are higher today than what they might be next year.
Marry the House and Date the Rate
Find the home you want to marry. It’s yours. You own it. The rate you can date. We can change that out anytime along the journey. Our team of buyer specialists can help you find a great home. We are still in a seller’s market, so the best homes go fast. Inventory has risen since February, but it has leveled off in recent weeks.
If you’re thinking of selling your home someday you might want to keep track of its value over time. Our Free home valuation tool will tell you your home’s value each month, so you can track it over time. Simply go to www.SWFLhomevalues.com Type in your address and our system will email you the new value each month. Pretty cool!
If you’re thinking of buying, our MLS search website is the Best out there. Go to www.LeeCountyOnline.com and search away. You can even save your search and the system will email you new properties that match your criteria.
Or you can call us at 239-489-4042 and speak with Brett or Sande or a member of our team. We’re not here to sell you anything, only present you with your options.
Good luck, happy shopping, and Happy Labor Day weekend!