3 Keys to Helping You Decide When to Make the Move
“Hey Blake, when are things gonna get back to normal?” I've been getting this question a lot the last few months. If you've been wondering when things will be getting back to the way they were a couple years ago, you’re not alone! Hopefully the things I'll be sharing with you will give you direction towards the goals you want to achieve for yourself and your family. First of all, I’ve got something you might not expect me to say: Buying a house isn’t for everyone. And that’s totally okay! If you’ve been holding off on home-buying, hoping for the market to return to “normal,” let’s take a moment to reflect on whether now is the right time for you. The New Normal: Are You Ready to Embrace It? Just a few years ago, we had interest rates hovering between 2% and 5%, and median home prices that felt a lot more manageable. If you’re feeling stuck on the sidelines, waiting for those days to return, I encourage you to ask yourself a couple of important questions: #1 Are you okay sitting in your current living situation for another year? Whether you’re cramped in a three-bedroom house when you need four. Or maybe your lot feels too small for your growing family. Consider the implications of waiting. If your current home isn’t meeting your needs, sitting still may not be the answer. #2 What bothers you more- the interest rates and home prices, or not creating the life you want? It’s easy to get caught up in the numbers, but let’s remember: dollars and cents aren’t the only factors that matter. Take the time to identify what the more important needs are for yourself and your family. #3 Remember Your Resources Friends, it's been a crazy year of learning and readjusting for everyone in the real estate business. From lenders and agents, to tax professionals, there are a lot of people who have been studying, learning, and seeking answers to all the questions you may have. Remember that you are not alone in this. Better information helps you make better decisions. We're just a phone call, email or text away, and we absolutely love helping our people win. Your Next Steps The Shawn Team is here to help. We believe that making a move—whether it's now or later—is about helping you create the life you want. Whenever you're ready to make that move, we are in your corner. Blake Shawn is a Real Estate Advisor and Team Leader for The Shawn Team of Real.
The Best Things Come in Twos
Hello and Happy Almost-Fall! This is the time of year when Central Valley peeps show 2 things: Hope and Determination. We hope the weather will get a little cooler. We are determined to tell summer that it doesn’t have to go home, but it’s time to move on out of here. We put up our fall decorations months before the leaves change, hoping those beautiful colors will get here sooner. We are determined to dress for fall, so we wear turtleneck sweaters while still needing sunscreen. BUT- What I’m REALLY excited to talk to you about is the announcement coming next week about the lowering of interest rates! You may have been hearing things like: “The top market focus this week will be speculation on whether the Fed will announce a cut of 25 or 50 basis points on September 18th. The markets are currently estimating a 28% chance of a 50 basis point cut.” Or you may have heard: “The August CPI inflation reportwill come out this Wednesday and the markets are expecting to see a 0.2% monthly increase in prices, leading to a 3.2% annual Core CPI inflation, and a 2.6% annual total CPI inflation.” But what does it really mean for buyers and sellers? What A Lower Interest Rate Means for Buyers Buyers, a lower interest rate means 2 possibilities for you: a lower monthly mortgage payment or being able to afford a more expensive home. Let me show you how this works. Let’s say that you are interested in buying a home. You go onto The Shawn Team app, put in what you’re looking for, and see some amazing homes. One great feature on the app is the mortgage calculator that's built right onto the same page as the listing information. So as you're looking at the home features, pictures and price, you can get an idea of what your monthly payments would be on the house you’re interested in. The Breakdown Let's look at the maths. We will compare a 6.5% interest rate with a 6% interest rate. This will show how a .5% drop in rate can affect pricing. (Your interest rates and pricing may vary. Your lender will be able to help you determine what your rate will be.) Option 1: Lower Monthly Payment First, we will see the difference in monthly mortgage payment with a reduced interest rate and the home price being the same. 6.5% Interest Rate (Average current rate) Home Price: $475,000 Monthly Payment: $2,798 6% Interest Rate (reduced by .5%) Home Price: $475,000 Monthly Payment: $2,674 This is a savings of $124 per month! Option 2: More Home A reduced interest rate can also give you the option of affording a more expensive home while keeping your monthly payment the same. 6.5% Interest Rate Home Price: $475,000 Monthly Payment: $2,798 6% Interest Rate Home Price: $491,000 Monthly Payment: $2,797 This increases your affordability by $16,000! What A Lower Interest Rate Means for Sellers Here are 2 great benefits for Sellers with the lowering of interest rates: Benefit 1: More Buyers Your pool of qualified buyers would increase! Using the above scenario, Buyers who had their limit at $475,000 can now raise it to $491,000. More buyers means more offers and the possibility of better offers. Benefit 2: More Money in Your Pocket Because buyers will be able to afford more home, you may also be able to list your home for a higher price without affecting the buyer's monthly payment. What's Next? Enjoy the season we are in, while looking forward to more good things to come. One thing is for sure- lower interest rates are going to be good for everyone! Take Care Friends, Have you downloaded our app yet? Find it here on Google Play and iTunes! This Market Update and similar such communications are for informational purposes only and are based on publicly available information. These materials are general communications, which are not impartial, and are provided solely for discussion purposes, and not in connection with any product or service offering. The opinions and views expressed in this Market Update are as of the date of this communication and are subject to change. Any forward-looking views and statements contained in this Market Update are based on current estimates or expectations of future events or results. Actual results may differ materially from those described in this Market Update. The views expressed in this communication should not be attributed to Guild Mortgage Company as a whole and may not be reflected in the strategies and products offered by Guild Mortgage Company.
Good Things on the Horizon
HAVE YOU HEARD? Interest rates dropped! Booyah! This is fantastic news for both buyers and sellers in the market. We've been following things closely to see what trends are emerging and the landscape is shifting in favor of nearly everyone involved. Let’s dive into why things are looking up. First, buyers can be optimistically hopeful. Lower interest rates mean more affordable mortgage payments, making homeownership a more accessible dream. This drop in rates is especially beneficial for first-time buyers who might have been hesitating due to financial constraints. With reduced monthly payments, buyers can afford more than they previously could. For buyers, especially first-time homebuyers, decreased interest rates mean lower monthly mortgage payments and a higher borrowing capacity. Essentially, you can get more bang for your buck. Imagine paying less over the life of your loan while potentially being able to afford an upgraded home or a better location. WHY ARE INTEREST RATES LOWERING? MARKET CORNER with LACIE ZACHARY To get more insight into what’s happening with interest rates, we met with Lacie Zachary with Guild Mortgage, who gave us some very encouraging insights into these changes. “The recent lowering of the interest rate was in large part due to the number of people on unemployment. As of this morning, the Fed Futures market is predicting an 88 percent chance of a 50 basis point rate cut in September with the Futures market predicting the Fed cutting rates 150 basis points by next March. What this equates to is about a 1.5% reduced interest rate. “On September 6, we will see the August Non-Farm Payroll report. If this does not show a rebound of the unemployment rate, then we will likely see another drop in interest rates. This would be very encouraging news, indicating that our economy will have a soft landing.” WHAT THIS MEANS FOR SELLERS For sellers, this can also be a significant win. With buyers eager to take advantage of lower rates, the market sees increased activity. More potential buyers can lead to competitive offers, potentially driving up property prices. Additionally, homes are likely to spend less time on the market, making the selling process quicker and smoother. If you’re not quite ready to sell but are thinking about it, now would be a good time to address minor repairs, doing some touch-up painting, and decluttering to help with staging in the future. WE ARE IN THIS TOGETHER We’ve been able to weather a lot together over the last year! With these changes that are happening, we are feeling heartened about opportunities. We love our people and our community. This news is exciting for us because of what it means for you. It means growth. It means achieving goals. It means a happy change for your family. It means opportunity. WHAT’S NEXT? If you’ve been out of the real estate game for a little while, an easy way to start becoming more familiar with the market is with our amazing app. It’s the best real estate market app out there, hands down. It’s better than Zillow. It’s better than Realtor.com. It’s so user friendly, and best of all WE NEVER SELL YOUR INFO TO ANYONE! (Anyone else tired of spam?) Here are the links to access and download our app. Take a look and keep an eye on what’s out there! Google Play and iTunes. Take care, Blake Shawn and The Shawn Team The Shawn Team 559-556-3600 info@theshawnteam.com The Shawn Team 1951 Hillman St. Tulare, CA 93274