Housing Market Shifting

Housing Market Update

Housing Market Changes & Critical Updates on Interest Rates!

We're seeing the market start to balance out and discuss important information for buyers and sellers. Including information in Interest Rates rising soon!

Bryce Gonser: Hey, what's up guys? Bryce Gonser is Jesse Taff back with another episode of Buying the 208 and this is your Q4 market update. So, Jesse, what's been going on, and what are you seeing on the real estate side with housing prices, you know, talk to us about that?

Jesse Taff: Yeah, great question. On one side of the coin, everyone thinks we're collapsing. The other side of the coin is still very excited about real estate in the area. I'm definitely on the excited side and what we're seeing is, we for sure are seeing a bit of a cooldown or maybe a bit of a slowing or a rebalance is probably the better term, and one, of course, it was going to happen if anyone was surprised this is happening, you know, they weren't paying attention, because there's no way we could sustain the crazy market 40% appreciation year beyond what we already have. So, we needed a cooldown, rebalance to stay in a healthy real estate market zone and that's what we're seeing. With that being said, we are still seeing high demand from people living in Idaho looking to purchase their first home or even move up into their next home, and still a tonne of people relocating into the area from out of state that is bringing in and keeping prices fairly high. So, we have seen a slight dip in prices. Most of that is due to sellers and real estate agents not pricing what the market is showing.

Bryce Gonser: That's crucial. Yeah, I think that's crucial. If you guys take anything away, it's that one point right there that if you don't have, you know, a listing agent, or you know, something that just as we went crazy at the beginning of last year on home prices. It's not that way where you can just put anything out there and you know, and it's in a 20-offer bidding war, you know what I mean? You have to be dialed in, you have to be calculated with that home purchase price and you need a good agent that's going to understand okay, the comps the market, you know, adjusts accordingly because the last thing you guys want is four weeks on the market with no offers.

Jesse Taff: Yep, exactly, and just to wrap up, you know, the housing portion, we have a very specific case, the last couple of weeks where two homes, one of our listings, another agents and sellers listing in the same neighborhood are sold or went pending in three days. Theirs was sitting on the market for about 2128 days. So, three to four weeks and we actually had a higher price per square foot, but the reason was, is one price correctly for the home and then now it does make a very big difference who is marketing your property for sale. So, that's one big takeaway and then the other one is, as far as buying goes, keep in mind, the interest rate has a far bigger impact than a small one to 2% change in property or home prices. So, is it a good time to buy? That is still a Yes and the reason is that interest rates are still an incredible zone right now.

Bryce Gonser: Exactly. So, guys, even if you're putting only, you know, 5%, down, 3% down, it's still low 3%, even with private mortgage insurance or even if you opt to take like a Lender Paid mortgage insurance, meaning you don't have that obligation each month, and it's still three, three, you know, three two, you know, all-time lows for interest rates, guys. So right now, what we're seeing is, it's going to be a big November for the Fed and what they're going to do is come out, and potentially we don't know, I truthfully don't know if they're actually going to come out and give a direct date or timeline for their asset purchases and what you guys need to understand is that the Fed spends about $180 billion per month buying bonds and treasury bills to artificially keep rates low. That's how interest rates have remained so low and throughout the pandemic, that we needed instant market liquidity and so that's what happened. They've talked about easing up on this. Now, me personally, I don't know what the jobs report coming in over 50% incorrect, they thought there was going to be 500 something 500,000 something, you know, new jobs available, that people are going to come back to work and they were off by 50%, not where they thought employment coming back to right now, unemployment is at the all-time high that it was in 2008. 

Well, I don't personally see how we reverse and lay off the gas pedal when we have so many people unemployed, so many, you know, like restaurants continuing to still close, because they simply are not because of COVID. They don't have the workers that come back. I don't know how we lay off those purchases. So, in my eyes, right now, we took a little blip in the last couple of weeks. So, interest rates have climbed back up slightly, again, with good money down, you know, 20%, you're still in the sub 3% range. Anything, you know, less than that. 20%, down under low 3% range and I think, again, November is going to be you know, obviously one of two things is gonna happen, they're gonna say, Yes, we're going to lay off our asset purchases, and we're going to ease up throughout 2022, in which case, you will see rates overnight start to creep up, just because people in the bond market money will come out, or they're like, we're gonna kick the can down the road again, which is what I personally think will happen. They're gonna say, no, we're not in position, and rates will continue to stay low, but we'll see.

Jesse Taff: Exactly. So, for now, rates are still very low, they have gone up a little bit, maybe they'll come back down, who knows. But the one thing we can guarantee is when the government stops purchasing bonds and treasuries, rates will go up, and when they do that half percent 1% to 3% higher than it is now is going to drastically impact how much you pay per month or what you can afford to purchase. So, it's still a very good time to buy honestly, with the market cooling buyers have a little bit more power right now. So definitely reach out. If any of you are considering purchasing, selling anything real estate-related we're here to help, and then obviously, as always, make sure to like, subscribe and share this with anyone that you think would benefit from the info.


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