And just like that, it's August 2024!

Can you believe Summer is almost over?

Aug 01, 2024

Hello August!

August is here, and you know what that means…time to go back to school for many families. It also means the market will slow down a lot for a few weeks. I always have to remind myself of that! It’s almost like turning off. a faucet as many families gear up for school and get back into their routine. It can be a bit discouraging for some home sellers. Luckily, it’s temporary, and things usually pick up mid-September. So what can I say about July? It was decent overall. I can say that we are in a changing market. Rates are still higher than some buyers would prefer, but lenders are coming up with solutions like rate buy-downs and other concessions. The big news is the upcoming commission change. Moving forward, buyers will need to negotiate commission with their agent, meaning that it won’t be business as usual. Sellers still have the option to pay the buy side and most are continuing to do so to attract buyers to their homes. Let’s be clear on this. Sellers have ALWAYS had the option of whether or not to pay a buyer-side commission. The change is that it will no longer be posted for other agents to see and some sellers may decide not to offer anything, leaving it up to the buyer to compensate their agent. This means some buyers may only choose to work with sellers that offer a buyer agent commission. Regardless, it’s unlikely a seller will reduce their price even if they are not paying both sides of the deal. It’s complicated and challenging, to say the least. What IS likely, is that we will lose a lot of agents who refuse to work with the new parameters or simply lack the skill set to negotiate what they are worth. Personally, I am ready for it and have already implemented procedures and educated my sellers and buyers. We’ve seen change before and it has a tendency to get rid of some of the “dead wood” in the industry

The bottom line is that it’s still a good time to buy and sell. If you have questions, I can help. 407-948-8295

If you're curious about the current market conditions or have any real estate questions, don't hesitate to reach out. I'm here to help you navigate this market and make the most of your real estate purchase or sale.

I know many of you might be worried about selling before you buy and might need to use your equity in your current home to purchase. Well, there’s a fix for that! Watch this video I just created with my favorite human, Susie Carlton of Element Home Loans!

Sellers, wanna try out something really neat? If you own a home and would like to keep track of your equity and value, I have access to a really cool product called HomeBot. You can sign up here: HOMEBOT AI. I love this technology! It gets delivered once a month and the info is easy to read and understand. It’s a free app to use. I highly recommend you try it out. I have 500 spaces available and they are first come, first served. As always, you can always call me to get a personal evaluation of your home. 407-948-8295.

RECENT HOME SALES

Why a Foreclosure Wave Isn’t on the Horizon

Even though data shows inflation is cooling, a lot of people are still feeling the pinch on their wallets. And those high costs on everything from gas to groceries are fueling unnecessary concerns that more people are going to have trouble making their mortgage payments. But, does that mean there’s a big wave of foreclosures coming?

Here's a look at why the data and the experts say that’s not going to happen.

There Aren’t Many Homeowners Who Are Seriously Behind on Their Mortgages

One of the main reasons there were so many foreclosures during the last housing crash was because relaxed lending standards made it easy for people to take out mortgages, even when they couldn’t show they’d be able to pay them back. At that time, lenders weren’t being as strict when looking at applicant credit scores, income levels, employment status, and debt-to-income ratio.

But since then, lending standards have gotten a whole lot tighter. Lenders became much more diligent when assessing applicants for home loans. And that means we’re seeing more qualified buyers who have less of a risk of defaulting on their loans.

That’s why data from Freddie Mac and Fannie Mae shows the number of homeowners who are seriously behind on their mortgage payments (known in the industry as delinquencies) has been declining for quite some time. Take a look at the graph below:

What this means is that, not only are borrowers more qualified, but they’re also finding ways to navigate through their challenges, exploring their repayment options, or maybe even using the record amount of equity they have to sell and avoid foreclosure entirely.

The Answer Is: There’s No Sign of a Wave Coming

Before there can be a significant rise in foreclosures, the number of people who can’t make their mortgage payments would need to rise significantly. But, since so many buyers are making their payments today and homeowners have so much equity built up, a wave of foreclosures isn’t likely.

Take it from Bill McBride of Calculated Risk – an expert on the housing market who, after closely following the data and market leading up to the crash, was able to see the foreclosure crisis coming in 2008. McBride says:

“We will NOT see a surge in foreclosures that would significantly impact house prices (as happened following the housing bubble) for two key reasons: 1) mortgage lending has been solid, and 2) most homeowners have substantial equity in their homes.”

Bottom Line

If you’re worried about a potential foreclosure crisis, know there’s nothing in the data to suggest that’ll happen. Buyers are more qualified now, and that’s one reason why they’re not falling seriously behind on their mortgage payments.

I am happy to come by and check your home out! Call me! 407-948-8295

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FIND OUT YOUR HOME’S ESTIMATED VALUE. CLICK HERE!

I have known Susie Carlton for over 15 years and she is one of my favorite humans! She’s caring, smart, and simply the best! I trust her with my own family! Check out the program below. It’s kind of amazing!

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