Assuming interest rates go down, and at what pace, do you think: 1. There will be more buyers than sellers, resulting in increased prices; 2. More sellers than buyers, resulting in price reductions?; or 3. Will it be an even amount of buyers/sellers with prices being steady? Do you think the answer will depend on how fast and how much the rates go down? For example, if rates plummet quickly (presumably due to a poor economy), will there be more sellers? Interested to hear your ground level perspective. Frustrating market. Thanks for the insightful videos.
Hi Chris. My Chris says that is a great name. It's his favorite joke. Ok, back to business. Give us a day or two for us to write up some answers here. Thanks for watching and commenting.
Hi! This is a crystal ball prediction question, but I'll give you my take. The most important thing is the overall economy. So long as the economy is moving along okay, there will be plenty of buyers. Interest rates in the 5% range is the magic number in my opinion. When rates came back down in the 5s at the end of 2022, we saw a noticeable pick up and I expect that can happen again when we get rate cuts, but it has to be substantial to see a noticeable impact. I think #1 is mostly likely to happen based on your scenarios. When rates come down, more sellers will put their home on the market, but they will also be buyers of replacement properties. New buyers will also enter the market still making for higher demand vs supply. But again, it's all dependent on the stability of the economy and if that gets shaky, buyers will likely sit on the sidelines because they aren't feeling economically secure. I do have a lot of economic concerns with individual and consumer debt being very high, inflation still increasing, etc but I've had these concerns for years and things are still chugging along, lol. That's my two cents and thanks for the comment!
The deal breaker for us are interest rates!! We have above 800 credit score, and are getting punished by these 7% rates. We are not buying anything until they drop into the mid 5% range. For example, we are qualified for 650-700k. A difference of 2 percentage points is almost $1000 a month in interest!
Hi @Twobarpsi we completely get it. Hindsight is 20/20 and the people that jumped on it 2019-2021 benefited the most when rates were low and prices were still relatively low in that $650k to $700k range mentioned. Now we are just hoping for 7% and under the next year or two. We don't see mid 5% for a long time, but no one knows for sure. We always appreciate your comments and support. ~Genung Team
Assuming interest rates go down, and at what pace, do you think:
1. There will be more buyers than sellers, resulting in increased prices;
2. More sellers than buyers, resulting in price reductions?; or
3. Will it be an even amount of buyers/sellers with prices being steady?
Do you think the answer will depend on how fast and how much the rates go down?
For example, if rates plummet quickly (presumably due to a poor economy), will there be more sellers?
Interested to hear your ground level perspective.
Frustrating market.
Thanks for the insightful videos.
Hi Chris. My Chris says that is a great name. It's his favorite joke. Ok, back to business. Give us a day or two for us to write up some answers here. Thanks for watching and commenting.
Hi! This is a crystal ball prediction question, but I'll give you my take.
The most important thing is the overall economy. So long as the economy is moving along okay, there will be plenty of buyers. Interest rates in the 5% range is the magic number in my opinion. When rates came back down in the 5s at the end of 2022, we saw a noticeable pick up and I expect that can happen again when we get rate cuts, but it has to be substantial to see a noticeable impact.
I think #1 is mostly likely to happen based on your scenarios. When rates come down, more sellers will put their home on the market, but they will also be buyers of replacement properties. New buyers will also enter the market still making for higher demand vs supply.
But again, it's all dependent on the stability of the economy and if that gets shaky, buyers will likely sit on the sidelines because they aren't feeling economically secure. I do have a lot of economic concerns with individual and consumer debt being very high, inflation still increasing, etc but I've had these concerns for years and things are still chugging along, lol.
That's my two cents and thanks for the comment!
The deal breaker for us are interest rates!! We have above 800 credit score, and are getting punished by these 7% rates. We are not buying anything until they drop into the mid 5% range. For example, we are qualified for 650-700k. A difference of 2 percentage points is almost $1000 a month in interest!
Hi @Twobarpsi we completely get it. Hindsight is 20/20 and the people that jumped on it 2019-2021 benefited the most when rates were low and prices were still relatively low in that $650k to $700k range mentioned. Now we are just hoping for 7% and under the next year or two. We don't see mid 5% for a long time, but no one knows for sure. We always appreciate your comments and support.
~Genung Team
Assume loans, I believe that happened for my folks back in the day and season change. Early summer, people wanna sell. My opinion :)
Hi Tina. That is interesting that your parents had an assume loan back in the day. Thanks for watching and commenting.
In the 70's , we had assumable and wrap around loans.
I would love an assumable loan. Are there many out there