by Kelly Overgard, contributor, Prior Lake Neighbors Magazine - March Edition
Everywhere you turn is conflicting information on where mortgage rates and home prices are going. After a whirlwind few years of mortgage refinances, a crazy homebuying market, and an exhausting pandemic, some people are burnt out and just want to sit still. That can be one of the worst decisions to make if you or your family needs to move.
Sellers
We need properties for people to buy. Prior Lake is a fantastic place to live and very desirable to buyers. Listing your home now means you can take advantage of the low inventory. There are highly qualified buyers already looking in our market. Does your family need to buy a bigger home, downsize to slide comfortably into retirement or simply want a different home?
Selling your current home first means you can write a purchase agreement on a new home without any contingencies. In the end that will make you a more desirable buyer.
Realtor Kathy Young from RE/MAX Preferred explains there are options for sellers. “You could potentially list and sell your home with a delayed closing date or rent back for a short period of time from your buyers. That would give you time to find your new home. Although the market has slowed, everything is still negotiable. The shift in the market has created an amazing opportunity for experienced Realtors to help sellers and buyers craft balanced terms on both sides.”
Buyers
With 36 years in the mortgage industry, I’ve experienced every type of market. Do not base your family’s housing strategy on interest rates alone. The reality is rates have doubled since the pandemic. Those low rates were not sustainable and were driving home prices to exorbitant heights. That means there is good news for most buyers. The increase in rates slowed the frenzied seller’s market which makes it possible for most people to enter or re-enter the market to buy. Some of my pre-approved buyers in the past few years shopped for six to 12 months losing in multiple offers before giving up. Now is the perfect time to start shopping again.
If your mortgage pre-approval is based on a payment you can afford, balanced with cash you have available to close, you can buy a home a home at any interest rate.
Another reality is when interest rates go up, rent will also increase. Investors need their rental properties to “cash flow”. Buying a home is the best way to stabilize your housing payment. It is the only way to ensure your rent will not skyrocket.
Sellers and buyers, how do you know which of the information out there is accurate or, more importantly, applies to you? You need a mortgage and real estate expert on your team. Kelly and Kathy are hosting homeownership seminars over the next few months. You can contact Kelly at (952) 913-7797 or kelly@kevnikmortgage.com for dates and location. We are lucky to have Mandi Vote – State Farm Insurance present on how to protect one of your biggest assets.
Have any questions? Reach out to us. We are your home loan experts and are up to date with all the market industry information. kelly@kevnikmortgage.com
Positively Changing Your Home Finance Experience. 🏠
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