Published: July 08, 2022
If I had to describe the Real Estate Market as I see it today in one word; I would say, ‘Busy!’
You might ask; ‘Laurie how is that different than the market last month, or last year or for the last couple of years for that matter?’ And I would say…. Other than minor seasonal fluctuations, like holidays, snow, storms, school starting, school ending, etc., it really isn’t different. I find that on the Eastern Shore of Maryland and Delaware, our housing market has a luxury of being insulated and isolated from many of the regional or national trends. We don’t have just one industry that supports us, we have Agriculture ( Farming and Chicken ), we have higher education campuses, we have a major medical hub, etc… so we are very fortunate to not rely on only one industry for our home sales statistics.
I get asked “Well, aren’t the higher mortgage interest rates affecting sales?” Yes, they are…. but the Buyers are still buying and the Sellers are still selling…. some things are shifting down a little though…. If Buyers are monthly payment driven (and they should be), then they are looking at about $20k to $40k less than they were before the interest rate hike. And we are seeing a few more reduced list prices in our searches than we had been for quite a while… So that original price put on when the interest rates were in the 3%’s, just isn’t drawing the traffic it should now that interest rates are in the 6%’s. The fact that the house goes under contract though, shows that as long as we react quickly, there is a Buyer that will see the value at the new price. I’ve had several conversations this week with new Sellers. Which is great because we so desperately need new listings!! In my next weeks BLOG, I will share what I suggest to these Sellers and any that want to put their best foot forward when they go live! The more they do before hand, the better the sales price and terms they will get when they go under contract. Till then: Keep Smiling and as always; call if you need any help buying or selling property in Maryland or Delaware.
And now, some good advice from Ken Lee with Movement Mortgage to help put your best foot forward in getting pre approved!
The power of the pre-approval:
In this ever-changing market with increased home prices, and interest rates are rising as well. Knowing how much you qualify for and being comfortable with that monthly payment has never been more important. It is important to apply now so that you know you are comfortably shopping in a price point that fits your monthly budget. We are in a time where keeping track of what your monthly out flow is has never been more important. So often in the mortgage business clients will get qualified for the maximum loan amount they are approved for, but that doesn’t always mean it is comfortable. My favorite thing to tell my new clients is “my computer will qualify you for a monthly payment, but the computer is not writing that check every month.” It is vitally important to your financial health to buy what you can afford, not necessarily what you qualify for. There are many benchmarks we can use to determine a comfortable monthly payment for you, and then work backwards on what that means for a total home purchase price. This can make the whole process more enjoyable as you know you are not stretching for a home that is outside of your comfort zone, and you don’t fall in love with a property you can’t afford. Call me today for more information