What’s Behind Declining Home Prices?

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Homeowners in the Triad are frustrated. Inventory is low, demand for their homes is high, and they’re receiving multiple offers from prospective buyers, but home prices are still dropping.

How can that be? Supply and demand economics would say that if there’s only a little bit of something that a lot of people want, the price should go up.

In real estate, things don’t always work this way. The factor that is causing this counterintuitive price drop is the banks. Banks don’t care that you’re pushing home values up; they feel that a given home is worth X amount, therefore, the amount they will loan will reflect that.

Now, the buyer can pay the difference out of pocket, but we’re seeing in certain price ranges that that is not always the case.

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Be cautious out there if you’re a homeowner.

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Be cautious out there if you’re a homeowner attempting to sell your home. Just because you get the highest and best offer doesn’t necessarily mean that it’s going to stick. It could come right back down to where it might have been in a more reasonable market.

If you need help, I’m here for you. We’ve been doing this a long time, so we can walk you through the process, make sure that we diligently price your property to get top dollar, and get every offer to stay. Do you really want to see a house four or five times just to get an offer to stick? We’ll always get you the most money in the shortest amount of time.

For any questions or if you need assistance, feel free to reach out to me. I’d be glad to help.

Why You Shouldn’t Worry About Interest Rates

Interest rates have gone up recently. However, they are still historically low.

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There seems to be a lot of people out there worried about interest rates right now. Yes they have gone up, but they are still historically low.

Back in the day, rates were in the mid to upper teens. Even when I started this blog, rates were around 8% or 9%. Right now, they are only around 4.25%. You may be tempted to wait and see if they go down, but I wouldn’t do that. It won’t save you a lot of money in the long run, anyhow. You’re better off locking in a rate now when you’re ready to buy. 

By ready to buy, I mean once you have money saved up for a down payment, you can commit to living in your property long-term in order to see the appreciation.

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Waiting for rates to drop might not be the best strategy.

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In the past 10 years, we have only had around 2.5% appreciation. In other parts of North Carolina, they’ve seen 20% or 30%. If you’re planning on buying a home in the near future, we suggest trying to finance the purchase in a short amount of time and pay off the loan. In 19 years of business, I have never done a short sale or foreclosure for someone with a 15-year loan. With rates so low and equity building so quickly with a 15-year loan, you could sell in a short period of time if you had to.

I hope that tips helps you out. If you have any questions for us at all, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

Don’t Panic Due to Rising Interest Rates

With the recent rise in interest rates, I've received a lot of questions from buyers on the brink of panic. Allow me to explain why your own timing matters more than interest rates when it comes to buying a house.

Selling your Triad area home? Get a free home analysis report

Buying a Triad area home? Search all homes for sale

With interest rates going up, I've received a lot of questions from folks wondering if they should make the leap and buy a home. I'm here today to tell you to chill—there's no need to panic!

So, should you buy right now? Only if you're ready. It doesn't really matter what rates are. Even if the interest rate was 0%, that still doesn't mean you're ready to buy a house. You can take a lesson from the car business, which routinely offers 0% financing. For 99% of the public, purchasing a car when they're not financially ready is still a horrible thing to do.

The same goes for real estate—not everyone needs to own a home. Because homeownership is so different from renting, it's best people rent until they have a full understanding of what buying a home entails. With a rental, you simply walk away when you're done. It doesn't quite work that way with homeownership.

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Not everyone needs to own a home just because rates are low.

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Things can break and need to be fixed, and you need to make sure you're properly educated and ready to go before you buy your first, second, third, or 10th property. Just because you've bought before doesn't mean things haven't changed in the real estate world, especially since the market collapse of 2007. We don't want another collapse, so we want to educate you on how to properly buy a home and avoid issues in the future. We want you to be meltdown-proof when the time comes to buy.

So if you have questions about buying a house, reach out to us. We don't want you to freak out about rates because, 2017 is going to be phenomenal. We want you to get educated first because knowledge becomes power. If you'd like to talk more about this topic, don't hesitate to give us a call or send us an email. We’d be happy to answer any questions you might have.

Until then, we want to wish you a merry Christmas as we look forward to 2017!

What's Going on in the Triad Area Market?

There are many great Triad area homes for sale. Click here to perform a full home search, or if you're thinking of selling you home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (336) 553-0796 for a FREE home buying or selling consultation to answer any of your real estate questions.

Hello and welcome back to the blog! Today, we just have a quick piece of information to share with you...

The market is hot in the Triad area right now, and we need inventory! If you or anyone you know is on the fence about selling, now is the time to get top dollar for your home!

We saw a lot of homes sell late last year, and 2015 is off to a fantastic start. We highly suggest you don't wait until spring to make your move. Things are starting to move NOW, so you need to jump in the market soon if you want to get a leg up on the spring competition. 

FHA has lowered their prices, and a USDA mapping change is going to make more people eligible for those loans. 

There are many reasons to put your home on the market now. If you would like to discuss your options, we would love to hear from you. Give us a call or shoot us an email for the real estate assistance you deserve!