Real Estate Blog
Spring is traditionally recorded as the highest sales time for home buying. This Spring presents a different scenario . it's not very often that we hear that there is a shortage in homes to purchase. It seems however we have that situation in the Greater Nashville area. There are four categories of homes being purchased and those categories being start-up homes, trade-up homes, downsizing homes and premium homes. Research has shown that the premium homes have recently shown a 4 percent increase. In other words, more homes in that premium category for sale.
Scott Troxel is the president of Greater Nashville Realtors and he recently said, "The inventory has been whittled down since January well below already low levels, : he said. " The sustained demand that we see will mean an even more competitive environment with fewer homes than last year. Even more sharks chasing the same fish."
This shortage of homes for sale has resulted in homes being on the market for a shorter period of time. Home buyers are finding it difficult to purchase a home in a particular area. Homes are being scooped up quickly and for a higher price. Working with a Realtor can only help especially if that Realtor has the knowledge and experience (like myself) to know what is coming on the market before it hits. This can help avoid some stress when you are working within a budget of what you are qualified to purchase.
There is a fear of selling and not knowing where to go. Even though the competition seems a bit fierce right now, working with a professional can help you have the advantage in making a educated decision while selling and navigating the market on the purchase of your next home. All while keeping your best interest in mind, please call me with any questions anytime. I may have what you're looking for and/or a buyer for your house?
"You've Got a Friend in Real Estate"
Mortgage interest rates have found a “new normal” since the Presidential election. We had become accustomed to thirty-year fixed rate mortgages coming with rates in the “3’s” but since then we’ve settled into a new range, operating in the “4’s”. With the Federal Reserve raising the Fed rate a third time in the past four months that has prospective homebuyers wondering if they’ll be stuck with rates in the “5’s”.
Predicting rates is difficult to do. If I could make that sort of prediction I’d be on Wall Street or in Las Vegas rather than helping people with their mortgages. The experts that I follow have forecast that while the Fed may not be done with their increases, mortgage interest rates are likely to stay in this range. I would be surprised if rates moved much higher than where we are but I’d be even more surprised if we dropped down into the “3’s”.
That being said, let’s take a quick look at the impact of rate on your buying power. A .5% increase in the 30-year interest rate adds almost $60 to your monthly payment on a $200,000 mortgage. Another way to look at it is that a .5% increase in rate reduces buying power by $15,000. From the seller’s perspective, an increase in rates can potentially disqualify prospective buyers by limiting their buying power.
Historically speaking, today’s rates are still near the lowest end of the spectrum. Homebuyers have financed homes at rates MUCH higher than this and with the high cost of rents, purchasing a home will continue to be an attractive option. With the uncertainty of where rates will go, those who are in the market to buy a home should at least take the first step in getting a solid pre-approval and strategy in place. A prepared homebuyer will have the advantage and that is where the big savings can be found, regardless of rate.
Call Todd Wiggins with First Community Mortgage with any questions and/or to get a quote on today's Mortgage Rates. 615.554.1983 (NMLS 211744)