Fed Cuts Rates. What Does This Mean For the Housing Market?
Current Interest Rates: What Homeowners Should Know Before Moving Up
The housing market has been on a wild ride with interest rates over the past two years. From historically low rates in early 2022 to the sharp increases that followed, many homeowners found themselves locked into mortgages with exceptionally low rates, making the prospect of upgrading to a larger home less appealing. However, recent changes could shift the landscape in your favor.
How Rates Have Changed and What It Means for You
In early 2022, interest rates began their upward climb as the Federal Reserve responded to inflation. By late 2023, the average 30-year fixed rate peaked at around 7.79%, making moving up to a larger home or refinancing an existing mortgage a costly decision. However, as we navigate through 2024, there’s good news on the horizon: rates have started to ease. Currently, the average 30-year fixed rate sits at about 6.20%, and market experts predict further declines towards 6% by the end of this year and potentially down to 5.5% by late 2025.
For current homeowners eyeing a bigger home, this could be the perfect window of opportunity. While today’s rates are still higher than the historic lows seen in the last few years, they are notably more favorable than the peaks of 2023. This could mean significant savings on your next mortgage and a more comfortable monthly payment than you might have anticipated a year ago.
Timing Your Move
If you’re holding off because you’re comparing today’s rates to those seen in the early pandemic years, remember that those were unique, temporary lows. With the Fed’s recent adjustments, we’re moving towards a more balanced market, and waiting for rates to return to 2020-2021 levels might keep you on the sidelines longer than necessary. The current trend suggests rates will gradually decline, making now a strategic time to start planning your next move.
How to Approach Your Next Steps
Before diving into a new home purchase, take some time to reassess your financial position, including your current home equity, which could be substantial after the recent run-up in home prices. Additionally, consult with a mortgage advisor who understands the nuances of the current market. They can guide you on locking in a rate that fits your financial goals and timeline.
The key takeaway? Don’t let the fear of higher rates hold you back from making your next move. The market is shifting, and staying informed will empower you to make the best decision for your family’s future. For a deeper dive into the current rate environment, read more about the latest changes [here].
Ready to Sell? The Essential Questions You Must Ask Yourself Before Putting Your Home on the Market
There's something quite delightful about getting acquainted with the homes we sell. Sure, we can stroll through, jot down measurements, and snap a few pictures, but the real charm emerges when our clients reveal the tales of their lives within those walls.
That's precisely why, during the early stages of our home-selling process, we (The Justiz League) inquire about the objects of their affection—the things they adore about their homes.
Now, we're not talking about the overtly grand features like colossal walk-in closets or state-of-the-art kitchen gadgetry. No, no—we're after those hidden gems, the often-overlooked minutiae.
The enchanting morning sunlight that graces your living room, the snug little nook by the fireplace where your little one loses themselves in a book, or perhaps the flourishing herb garden you've tended to with tender love and care on the back patio. These, our dear friends, are the magical details that make your home truly extraordinary.
So, before bidding adieu to your beloved home, ponder this: What sets our home apart? What do we cherish here that we know will be an elusive treasure elsewhere? Then, inhale deeply, express gratitude for your sanctuary, and divulge those sentiments to your agent, so they can weave your adoration into a narrative that will captivate buyers.
As we wrap up this heart-to-heart, we find ourselves curious: What do you love about your home—something only you would know? Do share in the comments! We promise to peruse each and every one with delight!
The Inside Scoop: Essential Real Estate Trends Sellers Can't Afford to Ignore
If you're flirting with the thought of selling your home (or merely have an insatiable curiosity for the latest real estate buzz), welcome aboard!
Armed with flair, I've crafted a tantalizing array of top trends that you simply can't afford to miss. From the enchanting sorcery of virtual staging to the irresistible charm of flawless home presentation, and unraveling the mystery of the ever-shifting market, these nuggets of knowledge will catapult you ahead of the curve and make your home-selling journey smoother than the creamiest crème brûlée.
Feast your eyes on these delectable insights:
Virtual staging: The cutting-edge of home showcasing, leveraging digital wizardry to create stunning, photorealistic interiors that entice buyers to envision themselves in your property. With virtual staging, you can effortlessly update outdated decor, reimagine empty rooms, and create a magazine-worthy visual experience that captures the imagination of potential buyers. Although we really prefer regular staging if it’s an opinion.
Home presentation and condition: Command the limelight with immaculate taste and meticulous attention to detail. A well-presented home can make all the difference in captivating potential buyers. Invest in decluttering, deep cleaning, making minor repairs, and refining the home's curb appeal to create a dazzling first impression that'll be impossible to forget.
Market nuances: Skillfully navigate the intricate dance between price points and days on the market. Understanding local market trends and properly analyzing comparable homes can help you price your property competitively. Keep a keen eye on fluctuations in buyer demand, interest rates, and economic factors that may influence the time it takes to sell a home at a particular price point.
Ensure this post finds a cozy nook among your favorites for future reference, and don't hesitate to reach out for my complimentary, brimming-with-wisdom Seller's Guide that will further hone your home-selling finesse!
From Blending In to Standing Out: How to Turn Your Home into the Talk of the Neighborhood
Ah, spring in Edmond - a time when the birds are chirping, the flowers are blooming, and the demand for homes far outstrips the supply. A delightful conundrum for home sellers, but only if they're shrewd enough to make the most of this low-inventory escapade. To help you become the talk of the town, here are a few clever tips to add to your repertoire:
The art of pricing: In a market where buyers are clamoring to pay top dollar for a new abode, it's essential to work with a seasoned real estate agent to set the perfect price. Strive for that sweet spot—competitive, but not so high that it raises eyebrows among potential buyers who can sense seller hubris from a mile away.
All that glitters: With the pickings so slim, your home must be the belle of the ball. Ensure it's clean, clutter-free, and staged to perfection. After all, who doesn't love a showstopper that oozes charisma and charm?
The flexibility factor: While you may have the upper hand in negotiations, don't let it go to your head. Be open to adjustments in closing dates, repairs, and other finer details. After all, a little bit of give-and-take can make your home even more alluring to potential suitors.
Stirring up urgency: Want to add a dash of excitement to your home-selling journey? Consider setting a deadline for offers or hosting a chic open house. Consult your trusted real estate agent for the most effective strategies that will have buyers in your neighborhood chatting over the fence about your property in no time.
Schedule a time to speak with your real estate agent at Calendly.com/justizleague.
The New Construction Process: Explained
Does this sound familiar? You are driving around Edmond and looking for your dream home. You see a few houses that you like, but nothing that checks all of the boxes. Then you find the perfect new neighborhood.
It’s in the right school district, has plenty of green space for your furry friends, there is a beautiful walking trail, clubhouse, gym and then the neighborhood pool starts calling your name! The only issue is that the lot you love doesn’t have a house on it! There is a builder sign, but you’re unsure about building. I mean, isn’t the process long, complicated, and fraught with headaches?
Well, do I have good news for you! The process is simpler than you might think, especially in a planned community. Oklahoma City is lucky to have builders in all price ranges that are fantastic to work with. And, if you are working with a Realtor to build a new home, we can help coordinate the process and keep your stress levels down. Wondering where to start when building your dream home? The process can be daunting, but let's break it down to a few simple steps.
Generally, the new construction process will follow these five steps:
Choose a lot.
There are a lot of things to consider when picking your lot. If building on raw land; slope, drainage, and utilities need to be considered. In a planned community, pay attention to traffic flow, noise, location to amenities, and home orientation if those are important to you.
Select a floor plan.
This is one of the most important things you will choose. You want to make sure that the space works for your needs! A few things you’ll want to consider are bedroom and bathroom count, single vs multi-level, open concept vs traditional layout, extra spaces like a bonus room, study, theater, etc. Some builders will have set floor plans to choose from, while custom builders can work with you to design a totally customized layout.
Pick the upgrades.
Some upgrades will almost always add a dollar value to your home, while other upgrades are just personal preferences. Additional usable square footage will almost always add value, while cosmetic upgrades like upgraded flooring or high end light fixtures may be personal preference items.
Sign the contract.
Your Realtor will help navigate the contract terms and explain different options with your contract. Each builder will have their own contract terms and process to sign the contract.
Watch your home come to life!
Once you get under contract, the process can begin! Your builder will give you an estimated timeline on the construction process based on your individual home and lot.
Whether you’re thinking of custom building or buying new, let us help guide you through the process. We know and work with the best builders in Oklahoma City and Edmond and would be happy to introduce you to them.