Tag: interest rate

Portland Market Update For Early-August 2023

Posted on by Tony Le

Find out what’s happening in the Portland real estate market for Early-August 2023.

 

 

What’s up all, I’m Tony Le with the Houselab team at Living Room Realty, here to tell you what you need to know about the market for early August 2023.

Let’s face it, the current housing market presents some challenges. Inventory in Portland is limited, interest rates are still relatively high compared to this time last year, and sellers who were able to lock in those low interest rates aren’t looking to sell any time soon. As a buyer, things can look daunting, but don’t give up just yet.

 

Market Action Index

The good news for buyers is that the Market Action Index is currently sitting at 49, down from 53 last month and inching towards a buyers market. Inventory, while still limited, is also up, currently sitting at an average of 1,235 homes with a Median List Price of $689,950.


Rate Buydowns

One of the strategies that sellers are offering are rate buy down credits to potential buyers. There are two common types.  Option #1 A permanent rate buy down and Option #2 a 2-1 rate buy down. 

The key difference between a permanent rate buy down and the increasingly common 2-1 rate buy down, is that the 2-1 is temporary, lasting two years. Typically the first year will be 2 percentage points lower than the current rate and the second year will be 1 percentage point lower before returning to the “normal” interest rate at the time of closing. If you have any questions about buy downs, reach out to your agent or lender for more information. 


When Should I Buy?

The question is, when will rates go down? And even more importantly, when they do drop, and the market floods with new buyers, what will the competition do to sales prices? Will we see buyers give away the farm, just to get the house? This is why leveraging one of the rate buy-downs in today’s less aggressive market could be the key to getting your dream home.

 

Make A Move

Living Room Realty is committed to connecting you with as much information to help you make an informed decision. If you’re ready to make a move, give us a call today. We’d love to help you find your next Living Room.

 

4 Reasons to Buy A Home This Winter!

Posted on by Living Room Realty

Here are four great reasons to consider buying a home today instead of waiting.

1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Insight report revealed that home prices have appreciated by 5.6% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.7% over the next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have hovered around 4.8%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of REALTORS® are in unison, projecting that rates will increase in 2019.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way, You are Paying a Mortgage
There are some renters who have not yet purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person building that equity.

Are you ready to put your housing cost to work for you?

4. It’s Time to Move on With Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.