Listing Courtesy of JACK LINGO REHOBOTH
Now that we are deep into July, with summer in full swing, there might be vague thoughts running through your mind about some potential real estate moves—but certainly not until the fall. Right now all most of us are thinking about is whether another chilled glass of summer-something-or-other is in order. Rehoboth Beach mortgage rates and what the folks in Washington might be doing to affect them are not exactly what occupies an idyllic July afternoon.
But if you’ve been paying attention to any newscasts long enough to reach the dull-as-dishwater economic stories they throw in toward the end of the broadcasts, you may also have an inkling that conditions are about to change. And the evidence does suggest that mortgage rates in our area face a likely increase come fall. If your vague suspicion does come to pass, and if you’re among those considering buying or selling a home in Rehoboth Beach this year, now should be the time to stop “thinking” and start “doing”.
Exhibit A for that proposition comes from one Michael C. Fratantoni, who happens to be the Chief Economist of the Mortgage Bankers Association (MBA). When he recently spoke at the National Association of REALTORS® office in Washington, he made no bones about it: mortgage rates will continue upwards, with a first significant Fed hike likely in September. September! The 30-year fixed mortgage, which we all know has lingered at historic lows—below 4%—for several years, is likely to hit 4.4% by the end of 2015 , then move beyond 5% next year.
It’s enough to stifle any thoughts about that frosty beverage.
The good news for Rehoboth Beach homeowners planning to list is that Fratantoni doesn’t believe any of these factors will keep the nations’ buyers away. After a pretty lackluster 2014 performance, the MBA forecasts a 14% year-over-year increase in purchase-money mortgage originations in 2015—and nearly 9% in 2016. Nationwide, incomes are also expected to rise, and with new household formations on the rise, the national real estate market looks to remain in fairly good balance.
While it seems there’s no instantaneous need to drop all your summertime activities to rush your home onto the market, with mortgage rates in Rehoboth Beach expected to rise sooner rather than later, it’s certainly worth making it a priority to give me a call this week. After that, there will definitely be ample time to finish enjoying that delightful chilled summer beverage. Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.
The upheaval in global financial markets over the past few years may have been unnerving for almost everyone, but among the hardest-hit group was first time home buyers, in Sussex County and across the country. Many had to deal with the stress caused by an uncertain economy, the fallout on business and job security, and, more directly, a pronounced increase in the difficulty of securing mortgages.
The good news for Delaware first time home buyers is how the national situation has stabilized. It’s confirmed by the increase in the number of people interested in buying a home for the first time—which has climbed out of the slump. The latest NAR (National Association of Realtors®) annual Profile—a yearly report describing home buyers and sellers—shows that new entrants into the residential market accounted for 39%, just 1% shy of the pre-crash mark.
If you’re selling a Delaware home and have priced it attractively, it could pay to be mindful of this important segment of our market.
So just who are Delaware’s first time home buyers? That’s where the NAR report gives us some important clues. Three-quarters of first time buyers across the nation fall into the category of current tenants —those living in rented accommodations—with 18% still living with parents. As you’d expect, almost all (98%) of that segment hope to fund their purchase with a mortgage, with 81% preferring a fixed-rate loan. Some first time home buyers plan to use personal savings for the down payment, but many others plan to get help from family. (Sussex County home sellers take note: one possible incentive to make your listing stand out might be to include an offer to cover closing costs.)
Three-quarters of respondents were aged from 22-42. The single most common reason given for buying a home is to start a family (70%), and of those buying a home for the first time, 51% are married couples. With proportions like those, any home in a family-friendly area should benefit by pointing out attractions like local parks, playgrounds and superior schools.
Maybe the most interesting statistic in the report was that 28% of the first time home buyers were already making plans to move again within five years! It may follow that, at least in many cases, first time home buyers in Delaware may not want to deal with remodeling issues. Attracting them could be the final reason to bring your property into “move-in” condition.
Well thought-out marketing is the key to success with any listing, whether it’s catering to Delaware first time home buyers or to any other segment. If you are thinking of selling your own home, a call to me and a some preliminary groundwork on a marketing plan that will work for you is definitely in order!