Market Update 9/19/2023

Consumer Sentiment: Americans have had a bit of a mood swing lately, with overall consumer sentiment dipping for the second month in a row. But don't fret—both short-term and long-term economic outlooks showed a hint of optimism. Inflation expectations are showing signs of cooling down a bit too.

🏡 Mortgage Lows & Metro Shifts: Did you know we hit our lowest mortgage activity since 1996? A drop in refinances was the primary driver, but it wasn’t all doom and gloom. Purchase applications saw a slight uptick. And for my city lovers, it appears there's a noticeable shift in construction from large metros to the 'burbs. Perhaps the allure of backyard BBQs is too hard to resist?

💰 Equity on the Rise: Here's a big win! Real estate assets of U.S. households have surged to a whopping $44.5 trillion. While there’s a slight dip in owner-occupied real estate, the overall equity is still looking rosy.

🏦 Banking Bits: Banks are cozying up to the Fed's new Bank Term Funding Program, borrowing a cool $108 billion. In other industry news, the deal between ICE, Black Knight's Optimal Blue, and Empower LOS has officially crossed the finish line. Cheers to fresh beginnings!

🔍 Regulation & Small Business Woes: The regulatory wheel keeps turning, but on Main Street, many small business owners are feeling the pressure. Inflation worries, hiring challenges, and declining optimism make for challenging times, but hey, small businesses have always been the backbone of our communities, and they have a knack for resilience.

Common Questions from Buyers and Sellers

Is it a good time to buy, or should I wait for mortgage rates to come down?

While mortgage rates may come down from their current highs, it’s nearly impossible to time the market. If you’re buying now, there may be ways to lower your monthly payment—like buying down your rate or choosing a financing option like an adjustable-rate mortgage (ARM). I’d love to connect you with my lending partner at Bay Equity, who can fill you in on the options you may qualify for.

Will prices fall any time soon?

It’s unlikely. The national median home sale price increased in July because there are so few homes on the market. While that dynamic mainly benefits sellers, there’s some good news for buyers, too: homes are selling for much closer to their asking price, even in competitive situations.

I read about a 1% down payment loan offering. Is that something you’d recommend?

There are several low-down-payment loan programs making a splash in the news. These options can work well for some buyers, but they are often hard to qualify for or come with tradeoffs hidden in the fine print. It’s important to shop around and talk with a lender to figure out which option works best for your financial situation.

Is it a good time to list?

Early fall is an opportune time to get your home on the market, as we often see a bump in buyer activity after Labor Day before things typically slow down over the holiday season. If you’re looking to sell this year, my team can get your home on the market quickly, with professional photos, staging, and marketing materials to make it shine.

Is the market competitive right now?

The market isn’t as hot as it was last year—the average home takes about a week longer to sell and typically goes for exactly its asking price—but we are seeing competition in pockets. Bidding wars are most common on well-priced homes with modern updates, so pricing and preparation are key for sellers. If you’re thinking of selling this fall or even next year, let’s talk about what improvements will help your home sell for more. 

Alright, friends, that's a wrap for now! Remember, knowledge is power, and in the ever-changing landscape of real estate, staying informed is key. Let’s keep the conversation going. Until next time, keep thriving and dreaming big!

Read more updates and insights at Hungry Realtor Podcast