Current home sales are still down in March and compared to March of 2022. Inventory is 41% lower than pre-pandemic levels and single family housing permits are down 31% while builder's continue to remain cautious do the interest rates.
Some of the nations largest real estate lenders and financial institutions are forecasting something far worst than the Great Financial Crisis to come! Commercial real estate! Over $1.4 trillion of CRE mortgages have to be refinanced in the next 2 years, and a enormous amount of that debt is held with regional banks.
WOW! Mortgage refinance demand surged 18% week to week but was still 75% lower than the same week one year ago. Recently, Mortgage Bankers said mortgage home purchase applications rose 3% for the week and were 37% lower than the same week one year ago. The average loan size on a mortgage purchase application increased to $428,500 — the largest average since May 2022.
This time last year, desperate buyers were willing to waive finance contingencies, inspections, and more to snag their dream home. No more.
Realtors are finally in a position to be able to negotiate on the buyer’s behalf one again. No more eliminating contingencies. No more paying $100,000-plus over the asking price. No more having to decide minutes after the max allowable 15-minute showing window to make an offer, knowing that every hour they wait, the competition for that house will increase. The power is in the hands of the buyers once again.