2019 And Beyond
Thus far, 2019 has seen the sellers’ markets that we had been experiencing for several years give way to opportunities for buyers to take a little more time when shopping for their first home or next home. Listing are typically spending a little more time on the market, & while we are seeing some multiple offers, those scenarios are not as common as they were in the recent past.
Within the market, rising inventory levels are having an effect on prices as the supply and demand curve continues to move to higher supply. I don’t believe there are any less reason for families to move, just the amount they have to choose from has changed. Outside influences in the market seem to have contributed to a shifting trend as well.
The federal government’s mortgage ‘stress test’ on financing has reduced the borrowing power of the consumer. A buyer, no matter how large a down payment percentage they have towards the purchase price, must qualify at an interest rate 2% higher then they will actually be committed to pay from their lender. The bonus consequence of this is that lenders seem to be ratcheting up interest rates on customers coming in for renewals since they know their hands may be tied from shopping around and facing the stress test at another institution.
If you find yourself in this situation, I would recommend reaching out to Michael Friedman. Michael & I work closely to advocate for our clients to bring about wins for them. I’m fortunate to have him in my corner when I’m helping people shop for their next address or refinance.
You can learn more by visiting his website:
There is opportunity in every market and I remind you that we can’t live in a stock or mutual fund, so while we all want to ensure our hard earned dollars are put to the highest and best use, our principle residence comes with other considerations for quality of life. If the best financially minded real estate purchase has you commuting to work 2 hours each way per day, the cost may out way the benefit.