Since many on this site may be buying or selling a home at any given time, own investment properties, or commercial real estate I'm posting this weekly update to stay current.
The data is well researched from multiple sources concerning the real estate & mortgage market.
Thus, it is fact based and only analyzing the data/trends without regard to government policy.
As I stated previously let's keep the thread informational for those that might be in the market and leave policy discussions in "The Corral".
Current Rates -
30 Year Conventional - High 6's
15 Year Conventional - High 5's
30 Year Jumbo - High 6's
30 Year FHA - Low 6's
30 Year VA - Low 6's
Shocking 1st Time Home-Buyer Data -
1st Time Home-Buyer are an integral piece to the housing life-cycle. You need them to come into the market to buy the homes of the "move-up" buyers in order for them to purchase a larger home - typically to accommodate a growing family or other lifestyle change. Over the past 10 years that age has sky-rocketed from 31 to an all-time high of 38.
Home Sales vs Affordability - 3 Issues
First, there are lots of homes for sale. But with the rise in home prices there is still a shortage of affordable home. That may be why as we mentioned above the average age of a 1st Time Home-Buyer is 38 years old, likely because it takes that long to get to an income level where you can afford to buy a home.
Second, the cost of building a new home remains high. The costs remain near an all-time high. In addition, the land/lot costs also exploded during the last few years - it all starts with the price of the "dirt".
Finally, in many parts of the country property taxes have increased dramatically as they are based on the rising value of the homes + homeowner's insurance rates have skyrocketed in many areas. I have a client right now buying a $600,000 home on the intercostal in Dickinson, and their insurance quote for homeowner's/wind-storm/flood was $18,000 a year. The property taxes and insurance are approaching the cost of the mortgage payment on a monthly basis.
Florida Market - Not Imploding But Not Sunny Either -
Florida was one of the hottest markets during the recent housing boom. But lots of what we discussed above may first come home to roost in Florida. Also lots of Florida in particular the Miami Area Market has lots of foreign buyers from Latin America - will a strong dollar dampen this insulator of Miami real estate?
What's Happening in the Top 50 Home Markets Currently -
Austin says, "Ouch"!
And a Little Jab at My Realtor Friends & Why They Should Stay In Their Lane -
Here is your average realtor that truly thinks when the FED cuts short-term rates it lowers long-term mortgage rates - the exact opposite happened and usually does.
I do love my realtors though - they are the ultimate optimists.
Would love to see a better 2025 - let's go!
Final Thoughts -
May everyone have a Safe & Happy New Year!
Take Uber, Lyft, or let a Designated Drive take you home if you have been overserved - we want to see every OB back in this thread in 2025.
1 Down & 3 To Go!
I didn't have this on my "Bingo Card" at the beginning of the season but nonetheless...
BEAT ASU!!!
Happy New Year!
MH
The data is well researched from multiple sources concerning the real estate & mortgage market.
Thus, it is fact based and only analyzing the data/trends without regard to government policy.
As I stated previously let's keep the thread informational for those that might be in the market and leave policy discussions in "The Corral".
Current Rates -
30 Year Conventional - High 6's
15 Year Conventional - High 5's
30 Year Jumbo - High 6's
30 Year FHA - Low 6's
30 Year VA - Low 6's
Shocking 1st Time Home-Buyer Data -
1st Time Home-Buyer are an integral piece to the housing life-cycle. You need them to come into the market to buy the homes of the "move-up" buyers in order for them to purchase a larger home - typically to accommodate a growing family or other lifestyle change. Over the past 10 years that age has sky-rocketed from 31 to an all-time high of 38.
Home Sales vs Affordability - 3 Issues
First, there are lots of homes for sale. But with the rise in home prices there is still a shortage of affordable home. That may be why as we mentioned above the average age of a 1st Time Home-Buyer is 38 years old, likely because it takes that long to get to an income level where you can afford to buy a home.
Second, the cost of building a new home remains high. The costs remain near an all-time high. In addition, the land/lot costs also exploded during the last few years - it all starts with the price of the "dirt".
Finally, in many parts of the country property taxes have increased dramatically as they are based on the rising value of the homes + homeowner's insurance rates have skyrocketed in many areas. I have a client right now buying a $600,000 home on the intercostal in Dickinson, and their insurance quote for homeowner's/wind-storm/flood was $18,000 a year. The property taxes and insurance are approaching the cost of the mortgage payment on a monthly basis.
Florida Market - Not Imploding But Not Sunny Either -
Florida was one of the hottest markets during the recent housing boom. But lots of what we discussed above may first come home to roost in Florida. Also lots of Florida in particular the Miami Area Market has lots of foreign buyers from Latin America - will a strong dollar dampen this insulator of Miami real estate?
What's Happening in the Top 50 Home Markets Currently -
Austin says, "Ouch"!
And a Little Jab at My Realtor Friends & Why They Should Stay In Their Lane -
Here is your average realtor that truly thinks when the FED cuts short-term rates it lowers long-term mortgage rates - the exact opposite happened and usually does.
I do love my realtors though - they are the ultimate optimists.
Would love to see a better 2025 - let's go!
Final Thoughts -
May everyone have a Safe & Happy New Year!
Take Uber, Lyft, or let a Designated Drive take you home if you have been overserved - we want to see every OB back in this thread in 2025.
1 Down & 3 To Go!
I didn't have this on my "Bingo Card" at the beginning of the season but nonetheless...
BEAT ASU!!!
Happy New Year!
MH
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