“We had been among the more bullish outlooks for this year for home prices, and we've taken our home price growth forecast and revised it so we expect home prices to slip for the year, but less than 1%,” Danielle Hale, Realtor.com’s chief economist, told Yahoo Finance Live.
“We'll start to see home prices rebound more convincingly in 2024,” she added.
Still, the pace of growth will be nothing like sellers or buyers have seen in a while. A normal pace, that is.
For instance, 117 economists and housing experts polled by Zillow expect home prices to increase at an annual rate of 3.5% until 2027 after bottoming out this year. That would be a more stabilized trend last seen in the 1990s before the housing boom and bust of the 2000s and follows the rapid run-up in housing values during the pandemic.
“A return to more normal growth would be welcome after the rollercoaster ride that home prices have been on lately,” Jeff Tucker, Zillow’s senior economist, said in the survey release.
2381 Net Sales – Project inception to 3/12/2023
2285 Closings – Project inception to 3/12/2023
96 Homes in Backlog (sold homes under construction)
https://www.dropbox.com/s/acd72tyyjz6e9al/Dusty%20Rose%20-%20Roaring%20Creek.mp4?dl=0
/my_files/temporary_files/Sun%20City%20Move%20In%20Ready%20Homes%202-1-23.pdf
How does a Fed rate increase impact the economy?
- In an effort to limit inflation, the Fed has been raising rates.
- Even though a higher rate can make borrowing money more costly, it can also increase returns on certificates of deposit and savings accounts, and drive a stronger U.S. dollar.
Though mortgage rates have steadily risen over the last few months, it may still be a great time to consider:
- Taking advantage of our rate buydown programs in order to buy a new home:
- Temporary buydowns lower the interest rate for a set time period at no cost to the buyer
- 3-2-1, 2-1, and 1-0 programs are available
- Sellers and third parties, such as real estate agents, can fund the buydown cost
- Available for: Conforming, High Balance, HomeReady, and Home Possible. Also available for FHA, USDA, & VA – including high balance (2-1 and 1-0 only)
- Consolidating debt*
- Since credit card interest rates are also increasing, this could be a good time to consolidate your debt into one affordable payment, thus skirting the more than 20% interest you may be paying with your credit card.
- Funding major expenses (like college tuition or home renovations)
- Refinancing to eliminate mortgage insurance
- Setting home financing goals
- Assisting with Pre-Approvals and TRU Offer underwriting approvals
- Selecting the right program for a home buyer or home owner's needs
- Reviewing how different mortgage programs can impact a budget
I am here as a resource: reach out today to get answers your questions about rates or home financing options!
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New loan limits for 2023 are being announced, and I want to make sure you don't miss out on any information that can help your clients.
The updated limits for each loan program are listed below. Click on the links provided to view more details and search for limits by location to view the specific higher limits available in high-cost areas.
FHA 2023 Loan Limits
Baseline loan limit: $472,030
Ceiling limit for high-cost areas: $1,089,300
Click here to view FHA's announcement of the new limits
Click here to find the limits which apply to your specific area
2023 FHFA Conforming and VA Loan Limits
Baseline loan limit: $726,200
Ceiling limit for high-cost areas: $1,089,300
Although the VA eliminated loan limits effective in 2020, the VA follows loan limits set by the Federal Housing Finance Agency (FHFA) on conforming loans for VA-eligible borrowers with less-than-full (referred to as 'remaining') entitlement. There are no loan limits for Veterans and service members with full entitlement; however, they still must qualify for the requested loan amount based on their credit profile, income, and assets.
To view the 2023 Fannie and Freddie conforming loan limits for your specific county, please go to FHFA's website.
If you have any questions about how to help your clients maximize their buying power, please reach out to me today! I look forward to continuing to work together to help home buyers and home owners achieve their goals in 2023.
Click the blue link below for a video tour.
http://www.youtube.com/watch?v=RQET0Fztwr4
- The Fed has been raising rates in an effort to limit inflation.
- Though a higher rate can make borrowing money more costly, it can increase returns on certificates of deposit and savings accounts, and drive a stronger U.S. dollar. What does this increase mean for homeowners and buyers?
- Financing home renovations
- Buying a new home and taking advantage of rising home inventories*
- The tides started to turn in 2022... home buyer demand lessened, opening a window of opportunity for buyers. This led to some much-needed inventory gains, with for-sale housing rising annually for three straight months, according to Realtor.com.*
- Consolidating debt**
- Since credit card interest rates are also increasing, this could be a good time to consolidate your debt into one affordable payment, thus skirting the more than 20% interest you may be paying with your credit card.
- Funding major expenses (like college tuition)
- Refinancing to eliminate mortgage insurance
- Assisting with Pre-Approvals and TRU Offer underwriting approvals
- Reviewing how different mortgage programs can impact a budget
- Setting home financing goals
- Selecting the right program for a home buyer or home owner's needs
Chase HansenLoan OfficerNMLS #1321014 |
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A quarter of U.S. homebuyers to looking for homes in a different metro, according to an analysis by the real estate company Redfin.
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The top destinations are relatively affordable and sunny.
Las Vegas, San Diego and Tampa, Fla., closed out the top five places where Redfin users are looking to move, according to the analysis. Keep in mind that Mesquite mirrors the Las Vegas Vegas pretty much. So I think Mesquite will stay strong despite other areas seeing a decline in Home Buyers.
So why not a housing crash too?
Americans who lived through the 2008 crisis may be watching the red-hot market starting to cool and getting flashbacks. And for prospective homeowners, it might be appealing to put your plans on pause until the market bottoms out so you can snag a house at a great price.
But experts say there are good reasons to believe that however this shakes out, it won’t be a return to 2008 — which will no doubt be a relief to anyone whose apple bottom jeans and boots with the fur have been long put away in storage.