06/25/2025
Here is your "๐๐จ๐จ๐ญ๐ฌ ๐๐ง ๐๐ก๐ ๐๐ซ๐จ๐ฎ๐ง๐" real estate update from ground level:
1. Housing shortage still in the NorthEast. A large sector of career jobs are in this region and back to the office has buyers moving back north.
2. The south now has more homes than buyers (a buyers market). Buyers are not holding back with hitting below the belt with low offers.
3. Rates are staying higher than expected. Rates need to drop to low 5โs if we expect a true spring market. "Marry the house, date the rate" has not aged well to this point.
4. Insurance rates in the south has payments coming higher than expected and killing deals. Not sure what the answer is but at this rate nobody will own property in Florida or Oklahoma.
5. Taxes have jumped. This one is a little bit on the ironic side because prices are actually falling so the tax man was late to the show with their increases. Best to be prepared to defend your values.
6. Upper end homes ($850k and up in our market) are selling, but starter homes are notโฆ.this needs a deeper look. Our opinion is people with money know that real estate is the safest investment on the planet. They know that in a volatile market, real estate is the answer, especially when prices fall a bit and that they can snag a decent buy. On the other hand, new buyers are banking solely on other people's money. They just care about the payment and arenโt thinking about how equity is the long game.
7. The 3% group, for the most part, is still sitting on the sidelines bragging about their payment. Remember: most people have to sell when, unfortunately, divorce happens. Eventually the market will flush the 3% folks out. The average life of a 30 year mortgage is only 7 years, so it still might be a few years before it happens.
Long story short: real estate is in a correction market after an insane supply shortage. Itโs a great time for a buyer to catch some savings on a property before things level off. One thing history has proven is real estate increases almost every year.
๐๐จ๐ง๐ญ๐๐๐ญ ๐๐ง ๐๐ ๐๐ง๐ญ ๐ญ๐จ ๐ญ๐๐ค๐ ๐๐๐ฏ๐๐ง๐ญ๐๐ ๐ ๐จ๐ ๐ญ๐ก๐ข๐ฌ ๐ฆ๐๐ซ๐ค๐๐ญ!