Area Real Estate News & Market Trends

 

May 6, 2022

What Rising Interest Rates Mean To You

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

Posted in Market Updates
April 19, 2022

Mortgage Rates Climb & How Your Credit Will Affect Your Rate!

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.
  1. Check your credit report, this is essentially a history of your credit activity and includes payment histories, credit card balances and other debt. A number of factors on that report help determine your credit score. Traditionally, you are allowed 1 free credit report a year from the three main credit scoring companies: Experian/ Equifax/ TransUnion. You can reach out to each directly or visit there website.
  2. Pay your Bills on time. Late and missed payments can knock down your score. Be consistent in paying your bills on time to improve your credit.
  3. Lower your credit utilization rate; All mortgage lenders will look to see if you have high balances on credit cards. Even if you pay your credit card bills in full each month, you may still have a high utilization rate. Making an extra payment in the middle of the billing cycle can help knock the balance down before the statement comes out.
  4. Consider a credit builder loan; Some community banks and credit unions offer credit-building loans, these are loans designed to help the loan holder establish good credit as they make timely payments.
  5. Watch for credit inquiries; If you are looking to purchase a home, hold off on any other big-ticket items, like a car, furniture and other big price tag items. Also, don’t open new credit cards or new lines of credit, which will result in more inquires for your credit sore. The higher level of inquires the higher the interest rate!
March 29, 2022

2022 Real Estate Trends

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…

Posted in Market Updates
March 22, 2022

Labor Shortage

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)!

 

Posted in Market Updates