Home Buyers are Looking and Rates are Headed Up

Home Buyers are Looking and Rates are Headed Up

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It’s that time of year when home sellers and home buyers start to get worried about either finding a home or selling their current one before winter. Lets face it, it is not fun moving in the cold weather nor is it fun to have buyers coming in

Home Buyers are Looking and Rates are Headed Upand out of your home in the winter tracing up floors and carpet. For home sellers the time to sell is now and for home buyers it is also time to find something that can close in a short period of time, we all know the pickings have been scarce for home buyers and many home sellers are priced higher. The market seems to leveling out as far as a Sellers Market vs a Buyers Market which is good news for both as home sellers realize the glory days of sellers markets are soon to be short lived and it is now time to sell.

Wayne, Oakland, Macomb and Livingston counties has increased by 29.7 percent from 12,781 in June 2013 to 16,572 this last June 2014 in comparison and many believe that the sellers market will continue through spring of 2015, but in real estate who really has a crystal ball? I certainly don’t but I’m optimistic but also a realist. The benchmark 30-year fixed-rate mortgage rose to 4.27 percent from 4.24 percent last week, according to the Bankrate.com and even a 0.5% jump in rates can easily raise a mortgage above your comfortable limit for home buyers. Mortgage rates continued moving higher at a fairly quick pace today.  Some borrowers may now start to see rate quotes moving up an eighth of a point.  This is significant because most of the recent movement in the rate market has only affected the closing cost side of the equation.  This can be thought of as a fine-tuning adjustment whereas actual changes in rate are a bigger deal.  For instance, closing costs change daily, and sometimes multiple times during the day.

Advice:

“Lock, Lock, Lock….rates are on the rise and if you are locking at any time in the next 3 days, now is as good a time as any. I think we’ll see rates move lower in the coming WEEKS, but the current short term trend is for higher rates.” –Brent Borcherding brentborcherding.com

If your a home buyer or home seller in my opinion it is the time to make a move if you are planning to sell or buy this year, there is great opportunities for sellers and we know that home buyers need more inventory to make decisions in a home to purchase.

Whats The Deference Between A Buyer’s Market and A Sellers Market?

Buyers’ Market

A buyers’ market refers to a marketplace that favors home buyers because more homes are listed than can be expected sell in the near future. If, for example, 20 homes are listed in a neighborhood, and 5 were sold in the last month, the neighborhood has a 4-month supply of homes for sale.

Sellers’ Market

Of course, the market can – and does – change based on general economic conditions such as rising or falling interest rates, or the local business climate such as a new company opening nearby. If, for example, all 20 homes listed plus 5 new listings sell within a few months, then the market has become a sellers’ market, where buyer demand meets or exceeds the house-for-sale supply.

 

 

What is the difference between a “Buyers’ Market” and a “Sellers’ Market?

 

What is the difference between a “Buyers’ Market” and a “Sellers’ Market?”


 

 

 

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