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As Summer begins to wind down, I also hope to see you at one or several of the events around town. There are also back-to-school outings that I've included in case these may be helpful to you and your family.
On the Real Estate Front
This month there is good news to share on mortgage rates but I want to start by sharing some gleanings from an article I recently read on a few Housing Myths as published on Realtor.com.
So here are the main points of the article, summarized for your review. Again, these are summaries. If you wish to read the entire article, you may find it on Realtor.com
MYTH 1: The Housing Market is About to Crash, Just Like in 2008
There are so many factors I could go into to explain why it is NOT the same market and conditions, but the most salient factor is that in 2008, it was the subprime mortgages coupled with an economic downturn which resulted in homeowners defaulting on their loans, an oversupply of homes then available on the market, and an eventual market crash.
However laws passed in 2010, led to tougher regulations and verifications on a buyer's ability to pay for their loans.
MYTH 2: Owners Have Such Good Rates, They Will Never Sell
Selling appears counterintuitive given the above. However, lives and needs change, people relocate, families grow, seniors retire, and there exist a host of other reasons why people need or want to sell their homes.
MYTH 3: As Rates Rise, Home Prices Drop
Home prices are driven by inventory and demand and so far, there has been no lowering of home prices. Though they have not escalated at the previous rate, the increase has been gradual, but steady. Below, I will share some good news on interest rates which in any event, can always be refinanced later on.
NOW THE GOOD NEWS ON MORTGAGE RATES:
- As of yesterday's news, mortgage rates for a 30-year fixed rate loan dropped to 6.4%, the lowest they've been since April 2023
- And mortgage rates for a 15-year fixed rate dropped to 5.9%; the lowest they've been since May of 2023
- Given ongoing positive economic markers, the feds continue to signal that mortgage rates may continue to drop in September
SELLERS, with more buyers being able to purchase homes, I'd be so happy to help you list yours, and help you find your next one.
BUYERS, with a drop in interest rates, and a slight uptick in inventory, you will have more choices to consider when making an offer.
SELLERS AND BUYERS, I am here to help both of you make the most informed and best possible choices in this important investment. Just call or text or email me today!
MARKET HIGHLIGHTS
Below, please find national real estate housing data and infographics from the National Association of Realtors. Keep reading to view the summary for the Louisiana market and in particular, St. Tammany and Tangipahoa Parishes.
We think you'll be most interested in what is happening here, but it helps to be aware of national market trends.
Please keep in mind that on the national level, data lags one month behind.
NATIONAL SNAPSHOT FOR JUNE
- Pending Sales - increased by 4.8% month over month [while in the regional South they increased by 6.3%]
- Existing Home Sales - decreased by 5.4% - month over month
- Home Prices - increased 4.1% - year over year
Continuing Challenges:
- Interest Rates
- Affordability
- Inventory Shortages
- Insurance Rates
Nationally, the month of June continued to trend toward a Sellers Market with 4.1 months of Inventory.
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