Ben Mercuri - Benchmarq Realty
- Weekly mortgage demand from homebuyers drops 12%.
- Building & Material prices up 36% as inflation continues to surge.
- Tight housing supply continues to fuel housing price increases as median home prices increase 14% annually compared to last year..
- The month of April '22 has seen homes sales fall to there lowest level since the start of the pandemic.
Ben Mercuri
Benchmarq Realty, LLC
5/5/2022- Federal Reserve has just raised its federal funds rate by a half point, a move that has not been seen in over a decade! What does that mean to consumers? The central bank sets the Federal Funds rate. This is the rate which banks both local, regional and national borrow and lend to each other. These rates are not the rates consumers like you and I pay, however each time a rate increases or a decrease happens it will affect all of our savings and borrowing interest rates. For example; Home buyers that were qualified for a $300,000 mortgage last week just saw a increase in what that monthly payment would look like. Today, do to the rate increase, a potential buyer could be looking at their buying power diminishing and lowering the amount that they are prequalified in addition to a higher monthly payment!
Ben Mercuri
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Mortgage rates are expected to continue climbing higher, consider making moves to lower your credit score so that you to can take advantage of the best rates available. Here’s what you can do.
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2022 Real Estate Trends
· Gray kitchens are becoming less popular & all white kitchens might be starting to date themselves!
· The mid-century modern furniture trend may finally be over.
· Barn doors could be replaced by other types of statement entryways.
· Accent walls likely won't be as trendy this year.
· Matching furniture sets may start to look dated.
· Peel-and-stick wallpaper will likely be trendy this year.
· Green cabinets could be one of the biggest kitchen trends of the year.
· Industrial styling may be the next big trend.
· Plaster walls may make a comeback.
· Wicker and rattan furniture will likely be trending.
· Natural fabrics may gain popularity over synthetics.
· Prioritize Storage throughout the home!
· LOW LOW INVENTORY will continue throughout the year…
· MULTIPLE OFFER SCENARIOs…
Labor shortage
The pandemic cost millions of Americans their jobs. The Bureau of Labor Statistics found that 9.6 million of them are actively seeking work, however businesses are reporting significant labor shortages. Weekly jobless claims are at a pandemic-era low just this past week, but businesses, particularly in the restaurant, service and construction industries, are still struggling to hire.
Experts think that the labor force is unlikely to return to what it was prior to the pandemic and while it's hard to pinpoint a definitive reason for the disconnect between Americans looking to re-enter the labor force and a possible catastrophic labor shortage, the following four main possibilities are leading indicators;
1. Unemployment benefits are a disincentive – employees have been in a position where they were literally making 4, 5 and sometimes $6 an hour more on UI (unemployment insurance) with the pandemic bonus.
2. Covid-19 health concerns - 500,000+ people in the US have died from COVID-19, so it's no surprise that the possibility of contracting a deadly disease would discourage people from going back to work.
3. At home care is still needed - the main reason adults can't return to the workforce is because they still need to stay at home with their kids. Some have not sent their children back to school since the covid-19 outbreak and have since chosen the online class method and many still cannot find the proper child care for there children which will not allow them to return back to the office.
4. Workers are holding out for higher wages - To account for financial struggles, large US companies have publicly raised their minimum wages during the past 2 years. (But still, many seek to “couch-surf” and collect unemployment vs. re-entering the labor force)!