To learn more about Christian Johnson or how you can best “Date the rate”, click here.Ĭhristian Johnson is the branch manager for Caliber Home Loans. We are still seeing desirable homes and desirable neighborhoods in a bidding war, but not with the fervor we witnessed in the spring. For quite some time, people have been having a hard time getting a new-build house because of the stall, and they are paying a premium to get an older house. This demand has caused prices to drive up throughout the area. This means extra housing is needed, and builders are having-and will have-supply issues and a difficult time keeping up with the pace. We are getting over 10,000 people a month. People from all over the country are moving to North Texas. We are still going to see some bidding wars. What are some of your predictions in the North Texas home market? You can buy a house at a reasonable price and get those appreciation gains for a few years, then refinance your mortgage loan later. You may be paying $12K in additional interest (due to the current rates), but gaining $75k in appreciation-that’s why you marry the house, but date the rate. If you have a $500k house with 10% appreciation over two years, that will be a $625k home at that time. What does “Marry the House, Date the Rate” mean? We’re in the middle of a cycle, and cycles are totally normal. More people can refinance, and appreciation will lower. It’s very reasonable to think we should get lower rates in 12 to 24 months. Right now unemployment is still low, and the word recession has been avoided. The FED won’t do anything until unemployment goes above 6%or the pressure of curbing recession causes them to cave. We anticipate a 5% to 10% appreciation rate over the next couple of years. What has caused this drastic appreciation in homes? We simply don’t have enough homes to meet the need. The market has calmed down considerably, but because there is so much need and not enough inventory, the appreciation rate will remain higher than normal for the next few years. When you combine the low rates of the past two years, plus a 20% appreciation in homes when Dallas homes normally appreciate at a rate of 5% to 8%, the apprehension is to be expected. There is still a need for people to buy a house, but apprehension has people sitting on the sidelines. Apartments remain at a 97% occupancy rate. How is the North Texas housing market doing? It’s still a good time to purchase a home in North Texas. We are trying to get back to a balanced market, which is good news. It’s not free eventually, you have to pay for it. There is a ripple effect from giving the store away for free. Buyers need to know that the interest rates we had during the pandemic were extremely unusual, but they lasted two years, which created a mindset that rates in the twos and threes are normal. The challenge for lenders has been communicating the message that the average interest rate in the past 30 years has been 6.5%, and right now, we are actually buoying near that point. This pivoted the mindset of consumers when it came to buying homes, because any time a big change like that occurs, it causes a lot of fear. This shifted the market and put the home buying and refinance market in a tight spot, especially the refinance market. The FED initially raised interest rates by three-quarters of a point, and then did so again in June and September. In this ever-changing real estate market, what has been top of mind for homebuyers?
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