Mortgage Rates Down a Full Percent from Recent High
Mortgage rates have been one of the hottest topics in the housing market lately because of their impact on affordability. And if you’re someone who’s looking to make a move, you’ve probably been waiting eagerly for rates to come down for that very reason. Well, if the past few weeks are any indication, you may be getting your wish.Mortgage Rates Trend Down in Recent WeeksThere’s big news for mortgage rates. After the latest reports on the economy, inflation, the unemployment rate, and the Federal Reserve’s recent comments, mortgage rates started dropping a bit. And according to Freddie Mac, they’re now at a level we haven’t seen since February. To help show the downward trend, check out the graph below:Maybe you’re seeing this and wondering if you should ride the wave and see how low they’ll go. If that’s the case, here’s some important perspective. Remember, the record-low rates from the pandemic are a thing of the past. If you’re holding out hope to see a 3% mortgage rate again, you’re waiting for something experts agree won’t happen. As Greg McBride, Chief Financial Analyst at Bankrate, says: “The hopes for lower interest rates need the reality check that 'lower' doesn't mean we're going back to 3% mortgage rates. . . the best we may be able to hope for over the next year is 5.5 to 6%.”And with the decrease in recent weeks, you’ve got a big opportunity in front of you right now. It may be enough for you to want to jump back in. The Relationship Between Rates and Demand If you wait for mortgage rates to drop further, you might find yourself dealing with more competition as other buyers re-ignite their home searches too.In the housing market, there’s generally a relationship between mortgage rates and buyer demand. Typically, the higher rates are, the lower buyer demand is. But when rates start to come down, things change. Buyers who were on the fence over higher rates will resume their searches. Here’s what that means for you. As a recent article from Bankrate says:“If you’re ready to buy, now might be the time to strike. Home prices have been rising primarily because of a longstanding shortage of homes for sale. That’s unlikely to change, and if mortgage rates do fall below 6%, it’s possible buyers would enter the market en masse, further pushing up prices and resurrecting bidding wars.”Bottom LineIf you’ve been waiting to make your move, the recent downward trend in mortgage rates may be enough to get you off the sidelines. Rates have hit their lowest point in months, and that gives you the opportunity to jump back in before all the other buyers do too.If you’re ready and able to start the process, reach out to a local real estate professional to get started.
Helpful Negotiation Tactics for Today’s Housing Market
If you haven’t already heard, homebuyers are regaining some negotiating power in today’s market. And while that doesn’t make this a buyer’s market, it does mean buyers may be able to ask for a little more. So, sellers need to be ready for that possibility and know what they’re willing to negotiate.Whether you’re looking to buy or sell a house, here’s a quick rundown of potential negotiations that may pop up during your transaction. That way, you’re prepared no matter which side of the deal you’re on.What Can You Negotiate?Most things in a home purchase are on the negotiation table. Here’s a list of just a few of those options, according to Kiplinger and LendingTree:Sale Price: The most obvious is the price of the home. And that lever is being pulled more often today. Buyers don’t want to overpay when affordability is already so tight. And sellers who aren’t realistic about their asking price may have to consider adjusting their price.Home Repairs: Based on the inspection, a buyer is within their rights to ask the seller to make reasonable repairs. If the seller doesn’t want to do that, they could offer to reduce the home price or cover some closing costs, so the buyer has the money to take them on themselves.Fixtures: Buyers can also ask for appliances or furniture to convey when the house changes hands. Having the seller throw in the washer and dryer cuts down on expenses the buyer would have when moving in. As the seller, you could leave your existing ones behind to sweeten the deal for your buyer, and get yourself new ones for your next place.Closing Costs: Closing costs typically run about 2-5% of the home’s purchase price. Buyers can ask the seller to pay for some or all of these expenses to offset the cash the buyer has to bring to the table. Home Warranties: Buyers can also ask the seller to pay for a home warranty. This is great for buyers worried about the maintenance costs that may pop up after taking possession of the home. And since this concession usually isn’t terribly expensive for the seller, it can be a good option for both parties.Closing Date: Buyers can ask for a faster or extended closing window based on their own timetable. The seller can also advocate for what they need based on their move to find the right compromise.One thing is true whether you’re a buyer or a seller, and that’s how much your agent can help you throughout the process. Your agent is your go-to for any back-and-forth. They’ll handle the conversations and advocate for your best interests along the way. As Bankrate says:“Agents have expert negotiating skills. Without one, you must negotiate the terms of the contract on your own.”They may also be able to uncover what the buyer or seller is looking for in their discussions with the other agent. And that insight can be really valuable at the negotiation table. Bottom LineBuyers are regaining a bit of negotiation power in today’s market. Buyers, knowing what levers you can pull will help you feel confident and empowered going into your purchase. Sellers, having a heads up of what they may ask for gives you the chance to think through what you’ll be willing to offer.Want to chat more about what to expect and the options you have? Connect with a local real estate agent.
Latest Real Estate Market Trends in Metro Atlanta
The latest real estate market trends in Atlanta, GA, show a mix of growth and challenges, reflecting the city's dynamic economic and housing landscape. Home Prices and Sales Median Home Prices: As of June 2024, the median home price in Atlanta is $434,000, representing a 4.7% increase from the previous year. The median sale price per square foot is $303, up 5.9% year-over-year. Another source notes a median sale price of $439,215 in the last 30 days, up 4.3% from the same period last year. Sales Volume: The number of homes sold has decreased. In May 2024, 773 homes were sold, down from 802 the previous year. In the last 30 days, 1,833 homes were sold, down from 2,167 last year. Market Competitiveness Days on Market: Homes in Atlanta typically sell after 35 days on the market, compared to 28 days last year. Offers and Pricing: The average home sells for about 2% below list price, with hot homes selling for about 1% above list price. Homes go pending in around 22 days for average homes and 11 days for hot homes. The median sale-to-list-price ratio is 98.09%, down 1.9 points from last year. Housing Supply Inventory: The total number of homes for sale increased by 10.2% from May to June 2024, with 7,628 homes available in June 2024. The months of supply increased to 2.5, up from 1.4 months last year. New Listings: There were 2,402 new homes listed in the last 30 days, up 3.2% year-over-year. Migration and Relocation Trends Inbound Migration: Atlanta continues to attract homebuyers from other metropolitan areas, with significant interest from New York, Los Angeles, and Washington. Local Retention: 79% of Atlanta homebuyers searched to stay within the metropolitan area. Rental Market Rent Trends: Atlanta saw a 1.2% increase in rent, indicating a steady rise in rental prices. Economic and Employment Factors Job Market: Atlanta's job market is robust, with an unemployment rate of 3.2%, below the national average. Key sectors contributing to job growth include technology and construction. Future Outlook Builder Confidence: Builders in Atlanta are expressing growing confidence in market conditions, indicating positive prospects for the real estate sector. Market Stability: Despite fluctuations in mortgage rates and construction costs, the Atlanta housing market is expected to maintain its momentum, driven by strong demand and favorable economic conditions. Overall, the Atlanta real estate market remains competitive with rising home prices, increased inventory, and strong demand driven by a robust job market and steady influx of new residents.
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