The holidays are drawing to a close, and with them a New Year is dawning! This past year may have been amazing for some, a disappointment for others. If you fall in the later category, it's not the end of the world, but this new year will provide you with plenty of opportunities to succeed. Here are some reasons why.
- Interest Rates will have to rise at some point -The FED, recently announced that they will not be raising rates in the near future.
1. The advantage for buyers is twofold. First they can afford more home now than when rates are higher, and while I don't recommend that agents push the limit of what their buyer can afford, If they can find a great deal or something right in the area they want, it may be advantageous for them to buy high and reap rewards of the property value over time.
2. Second, they will save so much more money! A 100k loan at today's rates (4.3%) on a 30 year fixed mortgage (5% down, 3k in taxes) would roughly cost you 74,000 dollars in interest. That same mortgage at 3.3% which was the rate roughly a year ago would have cost you only 54,000 dollars in interest over the life of the loan! That's a 20,000 dollar difference, so get on your buyers, they have a ton of buying power now, while rates are low!
- Sellers are in a great position to sell right now. The National Association of Realtors recently reported that while existing home sales declined, the average amount of time homes are on the market is down by a 16 day marginin. Home list prices are up 9.4% from last year at this time. This means lower inventory, more buyers who want to buy while rates are lower!
These factors, along with rents going up in many areas all across the US, mean people should look into buying again. Banks are not exactly handing out loans, but they still want to do business, so if you have a move up buyer/seller, or just that couple that is a first time buyer. Then this is a good time to help them explore their options, so use these tips to Make your NEW YEAR one you won't forget!
