In today’s #TREU
- Real Estate Market Overall Trend in the last 3 years.
- Financial Sector volatility and what we might see in mortgage rate.
- Buying New Homes in 2023 the right way.
- Residential vs. Commercial landscape shifting.
- Year over year trend may appear sluggish, but it’s more of 2021 and 2022 fast train slowdown, not market crash like some fear mongering media portrays. So don’t panic.
- Poorly managed banks are being bought up, so quantitative easing (QE) might be coming sooner than expected. Not because we solve the inflation problem, but to prevent banking system collapsing. With that pressure, we may see lower than 6% mortgage rate this spring and summer which fuels the real estate market. Typically speaking lower interest rates, higher real estate price. Higher interest rates, lower real estate price.
- New home builders are offering lower interest rate and price discounts. Many home builders use short term financing. With a higher cost to borrow money, they need to sell left-over inventory to move to new phase of construction. So if you are looking for a new home this year, ask for more incentives and price reduction. And as always look for the best lot in the subdivision. How to find a right home in new subdivision video from 2019:
- Calmer waves in residential, bigger waves in commercial section. Due to high office and retail vacancies, especially in downtown areas. Big tech layoffs creating potential ownership change in commercial real estate as home office demand continuously growing since the pandemic.