Best Time to Buy, A Conversation Starter

The Best Time To Buy

Realtor.com recently published an article stating when the best week is to buy a home and I don’t think it’s going to surprise you.. but do your clients know?  While this market has been frothy with negativity, some buyers are still taking advantage of opportunities.  Nathan Rothschild said “buy when there is blood in the streets”.  Warren Buffet, maybe a little more eloquently said “be fearful when others are greedy and greedy only when others are fearful.”  We are entering into a time when a recession is imminent, the Fed is forecasting “pain”, and housing is “correcting”. Now is not the right time to buy for some; but for others, it’s the perfect time.

New listings continue to be a point of contention, sellers are holding back as buying in today’s rising interest rate market is more expensive than staying put.  With new listings down, active inventory will not only come down due to the approaching holiday season but also interest rate lock.  The reduction of inventory as we end 2022; will kick off 2023’s buying season with fewer choices than we had in 2019.. this is not healthy.  It will also keep home prices from dropping in the Spring.  So this idea of home prices correcting is happening now.  40.1% of sellers dropped their price to sell last week.  Buyers are asking for inspection items repaired and they are getting it.

Mortgage purchase applications were up last week by 0.2%.. not a lot I know, but it’s still positive since  they have been going down for the last 10 weeks.  Do these buyers know their week is coming up?  Realtor.com claims September 25 through October 1^st is THE WEEK for home buyers, as there are traditionally 8.4% more homes for sale and properties are priced an average of $20,000 less than usual.

Mortgage rates topping 6.3% certainly puts a crunch on affordability and will keep many buyers on the sidelines.  But those buyers who are willing to bet on home prices continuing to remain strong and know there are opportunities in front of them to refinance when interest rates reduce, are the ones with a checkmark in the win column. Because long term, real estate always goes up.

Ps. If you’re looking to sell a home, Realtor.com says your best week is April 10-16^th.  😉

Homes Are Expensive, Why Not Build Your Own?

Our move to OneTrust Home Loans was for a lot of reasons, but reason number one is YOU!  Helping you find options in a challenging market.  Existing home sellers are on strike.  They are not selling because their home has an incredibly low locked in interest rate and a ton of equity.  So the alternative is building!  With our new land and construction loans, we can help you build the home of your dreams.

Let’s Start with the Land/Lot Loan …

• The land you find can be raw land, no utilities
• You will have up to 24 months to locate a builder, get all permits ready and close on a construction loan
• Minimum loan amount is $150,000 for a maximum of 5 acres
• Keep cash flow strong with interest only payments

Once plans are made and your ready to build, our flexible Construction Loan options mean you can choose the loan program that best fits your financial goals and building schedule.  We offer both a One and a Two-Time Close Construction Loan.

One-Time Close Program Features …

• Flexible loan options including Jumbo, FHA, VA, Conventional, and USDA
• Save money with only one appraisal and set of closing costs
• Rates are locked in prior to closing, with final terms converted to permanent terms once construction is finalized
• Primary residences only

Two-Time Close Program Features …

• Potential to obtain lower rates for long-term financing loan
• Up to 12 months construction term available
• Appraised value may be used for permanent take-out financing
• Owner-occupied, second home, and investment properties

If you want more information on this or our fix-and-flip, commercial, stand-alone seconds; email me at nrueth@theruethteam.com!

REAL Time Updates, Text’s From The Rueth Team

You can look up rates online, but how nice would it be to have them handy, on your phone if you’re working an open house or talking to a prospective buyer.  Did rates take a dump on Friday or are they trending favorably.  We don’t want you to be a lender, but knowing what your buyers are looking at can help you close the deal… especially when they are looking at the top of their range.

Would it be helpful to have the ONE THING that everyone’s talking about?  Like, the one thing that could affect rates and/or the housing market this coming week.  Or, what just happened that will have a ripple effect we will all feel.  I love, love, love putting together my Saturday blog for everyone but maybe you don’t have time to read it as you’re running out the door to meet a client.  We’ve got you on this too!

Starting next Friday if you text “UPDATE” to 855-930-0377, YOU will be in the know.   We will send very short messages so you know current rates, what’s moving the market, and breaking news in the industry.  No marketing. No advertising.  Just the fast facts!