By Frank May, Real Estate Agent
As we find ourselves in the peak of summer, we’re back in action after the annual July print hiatus at “The Upper Westsider.” Since then, we’ve had quite an interest-rate ride!
Rewind back two months, FHA rates were hovering at 6.125% and Conventional rates were at 7.375%. Fast forward to the present week, and we’ve seen rates undergo a tumultuous journey, ebbing and flowing through a series of highs and lows, eventually winding up remarkably close to our starting point. This fluctuation underscores the need for a savvy lender when looking to buy a home, someone with a keen eye on the market and a strong grasp of expert predictions. Choosing to lock your rate or float for a better one could mean the difference between saving thousands over the lifetime of a loan. Don’t hesitate to reach out if you’re in need of a reliable lender or advice on rates. I have a great lender.
Interestingly, both inventory and the number of homes under contract have seen a decrease. Expert predictions point towards lower rates by the end of the year or early next year, and that’s when we may see the housing market kick into high gear. With dropping rates and prices easing off their mid-2022 peak, more prospective homeowners will find themselves in a position to afford a house. This surge in buyers could stimulate prices to ascend a bit more rapidly than we’ve seen in the past year, a development likely to put a smile on every current homeowner’s face.
I was recently in a conversation with a fellow real estate agent whose client has been contemplating purchasing a home for about a year and a half. This client held back when multiple offers were coming in, reluctant to overpay. Now, the deterrent is the high interest rates. It got me thinking: seeking the perfect conditions may leave one perpetually waiting on the sidelines. But consider this – they could now secure a home at a price discounted by 20 to 25% compared to last year. While interest rate drops aren’t a guarantee, the odds are leaning favorably. Should rates decline, a refinance could put them in an enviable position. Above all, they’d be homeowners, investing in their own equity rather than contributing 100% ‘interest’ to a landlord.
Now, onto my real estate rant. If you’re in the selling market, conduct thorough research and quiz potential agents thoroughly. It’s crucial that your chosen agent boasts a solid record of sales in your area and has a few years of experience under their belt. A professional approach to marketing your home is key – no cellphone snapshots, please! The agent should be proactive, aiming to sell your home rather than simply listing it on the MLS and waiting. The difference could translate into thousands of dollars. If you need help framing questions for your potential agent, drop me an email or give me a call.
To all the first-time summer residents of the Valley, hang in there! This is one of the hotter ones, so surviving this will make future summers seem like a breeze.
As always, I’m here to assist with all your real estate queries, or if you need referrals to reliable contractors such as HVAC specialists, plumbers, handymen, lenders, and more. We’ve got a vast network of trustworthy professionals, and we’re always glad to share our contacts!
Frank May grew up in the Valley, graduating from Northwest Christian School and Northern Arizona University. He is a real estate agent with RE/MAX Fine Properties and has been helping both buyers and sellers for over 20 years. He has been a Dave Ramsey Endorsed Local Provider (ELP) since 2003. Learn more at mayteam.com.