Interest Rate Interruptions?

Interest Rate Interruptions?

Full Video Transcript Below

Interest Rate Interruptions - Strategies

Alice Lema: [00:00:00] Hey, real estate fans. Welcome back to the weekly podcast. Southern Oregon housing. I'm Alice Lema broker at John L. Scott here in Southern Oregon. And today we're going to talk about what is interrupting the rebound of the housing market. I don't know anybody else is feeling the sluggishness, but it's the interest rates.

They snuck back up again. So today's episode is things buyers and sellers need to know they can work through this. And again. We work with all markets. In my opinion, there's no such thing as a bad market or a good market. They're all just different. But but here we go.

So number one, mortgage rates are getting close to 7 percent again. And I bet a lot of people didn't know that. So we're going to put up a graph here. This is from investopedia and it's showing the interest rates in the last 90 days. And even in just the last couple of weeks, you can see it's, it's going right around 7 percent and that does [00:01:00] cause havoc with our buyers. And then it impacts the sellers.

So number two, the buyers are pulling back and they're pulling back on writing offers at all. They're pulling back on writing reasonable offers and they're pulling back on accepting properties that are either not updated, not in good repair. And they're just asking for a lot more stuff.

I do want to dive a little deeper into, into the underlying conditions here. So even the refinance people and the 15 year mortgage people are experiencing higher interest rates. And those are two categories of mortgages that normally get a little better deal in the interest rate department. And right now, even the refinance and 15 year mortgage folks, those rates are hovering around 6. 88 to 7. 68. That's higher for sure.

And I also want to caution [00:02:00] people who are buying and selling or considering buyer buying and selling in the future, and are thinking of waiting. Sellers are thinking of waiting because they think the interest rates are going to go down. Buyers are thinking of waiting because they think the market's going to get worse. Heads up, folks, the Federal Reserve Bank is making noises that they're not going to lower the rates. That's one of the key mechanisms that makes prices go, go higher. So sellers, I wouldn't bet the farm on the rates going down this year because, first of all, the feds they don't always do what they say.

And then buyers. I don't know that it's going to get worse. We're in still such a low inventory situation and yeah, it's a smidge better than it was last year, but it's still not enough. And so buyers, I don't want you betting the farm that the market's going to get worse. So here's my advice sellers. I think if your property is not in contract or about to be in contract, you need to make [00:03:00] some hard decisions like lower the price, improve the condition, offer better terms publicly, put it in the listing, but act fast because this is the end of February. We're about sellers, we're about to go into the spring market and in our area, because we're seasonal, at least in normal times, we're seasonal. So act fast so that you can. Still be part of this more low inventory situation and get on with your life because you put your house on the market because you wanted to do something else with your life. Act fast, get the house in better condition, get it in better repair, make it more modern, offer more goodies to the buyer, lower the price or all three. That's my advice to sellers or take it off the market or rent it out.

Buyers. The world is not coming to an end. It's just fluctuating with micro movements. The goal for you buyers was to secure an [00:04:00] asset, especially if you're a first time home buyer, don't mess around. You've got a little softness right now. You're probably not Warren Buffett. I'm just guessing. So don't over negotiate buyers, write a reasonable offer. You can ask for a little more stuff because we're getting it from the sellers. But I do suggest you write reasonable offers or at least more reasonable offers in order to get into contract because the goal is to get into contract and close.

And then you have your own home or your next home or another home or another rental or whatever it is, your life has moved on and whatever happens the rest of the year, you can weather it because you've got that asset in your portfolio, and that is the goal. The goal is not to squeeze the seller to the point where they won't do the deal with you. And I see a lot of that happening right now. So, the goal is to secure an asset, even if you're an investor, don't over [00:05:00] negotiate. That is my advice.

In the meantime. Subscribe to this channel, give us a thumbs up, share it with your friends and family. A lot of people don't know what it's really like week to week out there, and we do. So so make sure you get it out there to your friends and family so they could be good consumers too. And make decisions with the most up to date information. I'd also love it if you'd call me because I'm aware of all this stuff.

I can help you make a good buying or selling decision. My number is 541 301 7980. That's 541 301 7980. I want to be your agent. I'm a great buyer's agent, great listing agent, do a ton of. First time homebuyers, downsizers, elderly people. I can even help elderly people not sell their house by changing the condition of their house so they can stay. There's a little tangent that people [00:06:00] don't know. But great with renters getting them into home ownership riverfront, rural property investors. Yeah, real estate's my bag and I want to be your agent and help you with the next step of your real estate life.

If you're curious about the week to week movements in Southern Oregon, Jackson County, Josephine County, and Klamath County, I have weekly market statistics videos. They're super short. They're super to the point and we're tracking the for sale and short sale activity in all three counties because that is a leading indicator of market movement for Southern Oregon. So thanks for joining. We'll see you next week. Hug those you love. Bye now.

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