There’s never been a truer statement regarding forecasting mortgage rates than the one offered last year by Mark Fleming, Chief Economist at First American:
“You know, the fallacy of economic forecasting is: Don’t ever try and forecast interest rates and or, more specifically, if you’re a real estate economist mortgage rates, because you will always invariably be wrong.”
Coming into this year, most experts projected mortgage rates would gradually increase and end 2022 in the high three-percent range. It’s only April, and rates have already blown past those numbers. Freddie Macannounced last week that the 30-year fixed-rate mortgage is already at 4.72%.
“Continuing on the recent trajectory, would have mortgage rates hitting 5% within a matter of weeks. . . .”
Just five days later, on April 5, the Mortgage News Dailyquoted a rate of 5.02%.
No one knows how swiftly mortgage rates will rise moving forward. However, at least to this point, they haven’t significantly impacted purchaser demand. Ali Wolf, Chief Economist at Zonda, explains:
“Mortgage rates jumped much quicker and much higher than even the most aggressive forecasts called for at the end of last year, and yet housing demand appears to be holding steady.”
Through February, home prices, the number of showings, and the number of homes receiving multiple offers all saw a substantial increase. However, much of the spike in mortgage rates occurred in March. We will not know the true impact of the increase in mortgage rates until the March housing numbers become available in early May.
Rick Sharga, EVP of Market Intelligence at ATTOM Data, recently put rising rates into context:
“Historically low mortgage rates and higher wages helped offset rising home prices over the past few years, but as home prices continue to soar and interest rates approach five percent on a 30-year fixed rate loan, more consumers are going to struggle to find a property they can comfortably afford.”
While no one knows exactly where rates are headed, experts do think they’ll continue to rise in the months ahead. In the meantime, if you’re looking to buy a home, know that rising rates do have an impact. As rates rise, it’ll cost you more when you purchase a house. If you’re ready to buy, it may make sense to do so sooner rather than later.
Bottom Line
Mark Fleming got it right. Forecasting mortgage rates is an impossible task. However, it’s probably safe to assume the days of attaining a 3% mortgage rate are over. The question is whether that will soon be true for 4% rates as well.
Why a Real Estate Professional Is Key When Selling Your House
With today’s real estate market moving as fast as it is, working with a real estate professional is more essential than ever. They have the skills, experience, and expertise it takes to navigate the highly detailed and involved process of selling a home. That may be why the percentage of people who list their houses on their own, known as a FSBO or For Sale By Owner, has reached its lowest point since 1985 (see graph below):
Here are five reasons why selling with a real estate professional makes more sense, even in today’s hot market:
1. They Know What Buyers Want To See
Before you decide which projects and repairs to take on, connect with a real estate professional. They have first-hand experience with today’s buyers, what they expect, and what you need to do to make sure your house shows well.
If you don’t lean on their expertise, you may spend your time and money on something that isn’t essential. That’s because, in today’s low-inventory market, buyers are willing to take on more of the renovation work themselves. A survey from Freddie Mac finds that:
“. . . nearlytwo-in-five potential homebuyers would consider purchasing a home requiring renovations.”
A professional can help you decide what you need to tackle. It’s not canned advice you could find online – it’s recommendations specific to your house and your area.
2. They Help Maximize Your Buyer Pool
Today, the average home is getting 4.8 offers per sale according to recent data from the National Association of Realtors (NAR), and that competition is pushing prices up. While that’s promising for you as a seller, it’s important to understand your agent’s role in bringing buyers in.
Real estate professionals have an assortment of tools at their disposal, such as social media followers, agency resources, and the MLS to ensure your house is viewed by the most buyers. According to realtor.com:
“Only licensed real estate agents can list homes on the MLS, which is a one-stop online shop of sorts for getting a house seen by thousands of agents and home buyers. . . . This is certainly one of many good reasons why the majority of home sellers decide to employ the services of a listing agent rather than going it alone.”
Without access to these tools, your buyer pool is limited. And you want more buyers to view your house since buyer competition can drive your final sales price higher.
3. They Understand the Fine Print
Today, more disclosures and regulations are mandatory when selling a house. That means the number of legal documents you’ll need to juggle is growing. That’s why Investopediasays:
“One of the biggest risks of FSBO is not having the experience or expertise to navigate all of the legal and regulatory requirements that come with selling a home.”
A real estate professional knows exactly what needs to happen, what all the paperwork means, and how to work through it efficiently. They’ll help you review the documents and avoid any costly missteps that could occur if you try to handle them on your own.
4. They’re Trained Negotiators
If you sell without a professional, you’ll also be solely responsible for all the negotiations. That means you’ll have to coordinate with:
Thebuyer, who wants the best deal possible
Thebuyer’s agent, who will use their expertise to advocate for the buyer
Theinspection company, which works for the buyer and will almost always find concerns with the house
Theappraiser, who assesses the property’s value to protect the lender
Instead of going toe-to-toe with all these parties alone, lean on an expert. They’ll know what levers to pull, how to address everyone’s concerns, and when you may want to get a second opinion.
5. They Know How To Set the Right Price for Your House
If you sell your house on your own, you may over or undershoot your asking price. That could mean you’ll leave money on the table because you priced it too low or your house will sit on the market because you priced it too high. Pricing a house requires expertise. Investopediaexplains it like this:
“. . . There is no easy or universal way to determine market value for real estate.”
Real estate professionals know the ins and outs of how to price your house accurately and competitively. To do so, they compare your house to recently sold homes in your area and factor in the current condition of your house. These factors are key to making sure it’s priced to move quickly while still getting you the highest possible final sale price.
Bottom Line
There’s a lot that goes into selling your house. Instead of tackling it alone, let’s connect so you have an expert on your side throughout the entire process.
How do you make sure your open house goes smoothly and gets the job done?
An open house is a tried and true way to attract potential buyers and create buzz when your house goes on the market. So how do you make sure your open house goes smoothly and gets the job done? Consider the following insider tips and tricks to help ensure you have a successful open house.
Out with the old. It might sound a little harsh, but you’re going to want to remove about half of your belongings. The goal is to sell your house, so any unnecessary clutter is really just getting in the way of that. This might mean storing away all those sentimental vacation knickknacks, framed family portraits, toddler toys and bulky furniture. Buyers want to see fresh, clean open spaces. They need to imagine their things there, not yours. If storage is an issue, look into a nearby short-term storage facility to help move things out during this time.
What’s on the outside counts. In this instance, what’s on the outside matters. First impressions are huge, so make sure your lawn is cut, trees trimmed, toys and garbage cans … are all stored away. Think about planting some pretty flowers or adding a few big flowerpots and a welcome mat by the door. This would also be a good time to power wash the outside and clean the windows. Also, replace any outdated light fixtures and consider painting your front door a welcoming color.
Shine up your kitchen and baths. Get them as sparkly clean as possible–we’re talking cleaning every square inch. Focus your attention on decluttering these spaces. Buyers want to see your counter tops, your backsplash, your shiny appliances – not your blender, toaster and junk mail. It’s also smart to clean out your pantry and refrigerator because, let’s be honest, people do like to snoop around.
Always take a final lap. Look at your house objectively, through the eyes of a buyer. Make sure you’ve depersonalized every room. That means dog beds, little Jimmy’s 3rd grade artwork, closets stuffed with old clothes, toothbrushes on the bathroom counter … And then look at rooms that could use a little more sprucing up. There are a few simple and cost-effective ways you can make a room look brand new. Invest in a couple new throw pillows on your bed and sofa, a new entryway rug, a neutral-colored shower curtain and a bouquet of fresh flowers. Always make sure your home smells good. There’s nothing that turns a buyer off faster than a stuffy, smelly house.
Holding an open house is a great way to gauge buyers’ interest in a property and quickly assess whether the asking price is appropriate. And preparing for an open house really comes down to two things: cleaning and decluttering. With these tips, you’re well own your way to your next real estate adventure.
A picturesque gem, surrounded by Gallo-Roman walls and towers (dating from the late 3rd Century CE), offering historic secrets and charms that many are not aware of? Welcome to Le Mans! The town of Le Mans is typically visited to experience one of the most famous and oldest car races in the world, 24 Hours of Le Mans. Of a quarter of a million attendees, there are very few who stay past the duration of the race to discover the rich history of Le Mans, which dates back to being the capital of the Gallic tribe Cenomani.
Rich in history but always moving forward, the newest addition to Le Mans is Coldwell Banker Val Property, the newest franchisee to the Coldwell Banker France network. “Come visit our region for its incredible cultural heritage,” says Director of Coldwell Banker Val Property, Catherine Gourmelon. The beautiful old town flaunts a Roman legacy seen by the distinctive pink mortar and ochre sandstone wall around the city, as well as medieval houses with propped open doors, gorgeous courtyard gardens, paved streets, and museums to satisfy a range of interests. Perched along the beautiful River Sarthe and overlooked by the spectacular Cathedral of Saint-Julian, directors and film makers have long prized this destination as a period film set. You, too, could experience this real-life movie set and take in the unique history among the city walls.
Where do you live: Coldwell Banker Val Property is located in Le Mans, the department of Sarthe in the region Pays de la Loire
What is the perfect weekend day like? Le Mans prides itself on having one of the best-preserved city walls found anywhere. Of the 1,300 meters of wall that originally surrounded the city, dating from the third and early fourth centuries A.D., more than 500-meters remain today in marvelous condition. The wall is significant in size and condition and is also remarkably recognized for its geometric decorations and the lovely hues of its ochre sandstone held together by pink mortar. Walk around and take in the beauty of our unique city. Le Mans offers a rare set of half-timbered houses, Renaissance mansions and cobbled streets of the period used as natural scenery for many films such as Cyrano de Bergerac by Jean Paul Rappeneau, Le Bossu by DE Brocca or Le Mans 66 with Matt Damon and Christian Bale. Be sure to visit the highlight of Le Mans, the Saint Julien Cathedral, and end the afternoon with a coffee at the Jacobins Market, one of the most beautiful markets in France!
What are the common modes of transportation there: Le Mans is at the heart of an excellent motorway and rail network. The city is 55 minutes by TGV (high-speed train) from Paris Montparnasse, 3 hours from Lyon and 3h 30m from Strasbourg.
Tell us about the foods your area is known for: “Les Rillettes” (pork pâté with a stringy appearance, seasoned with salt and pepper and slow cooked in its own fat), the world’s best cheese monger, Fabien Degoulet, and one of the best chocolate makers in France, “Bellanger”
What is your favorite meal? At home or at a restaurant: I truly enjoy having dinner at Auberge de Bagatelle, the Michelin-starred restaurant that serves unforgettable meals. Located in an old inn that’s been wonderfully renovated, Chef Jean-Sébastien Monné creates exquisite dishes.
Where do you recommend someone vacation in your region, why: Rent a boat and go up the Sarthe to explore the hidden villages, hike in the Mancelle Alps, or visit the Loire castles while tasting local wines
What is your favorite recreational or leisure time activity: It is fun to go see basketball games. Le Mans Sarthe Basket (MSB) is a basketball club playing in the first division. Many people also like golfing. Le Golf des 24 Heures is a 24-hour golf course affiliated to the French Golf Federation. An original competition takes place there every year too!
Share a little known but interesting fact about the area/region: The 24 Hours of Le Mans race is a 24-hour endurance car competition held in June (usually the 24th week of the year) on the road circuit south of the city of Le Mans and on a section of the famous Bugatti circuit. This event exists since 1923 and is one of the 3 most prestigious races in the world with the Monaco Grand Prix and Indianapolis 500 miles, attracting more than 500,000 spectators from all over the world. Unlike fixed-distance races whose winner is determined by minimum time, the 24 Hours of Le Mans is won by the car that covers the greatest distance in 24 hours. Racing teams must balance the demands of speed with the cars’ ability to run for 24 hours without mechanical failure.
If you were to live in any other region where we have a Coldwell Banker presence, where would it be and why: If I lived anywhere else it would be Arcachon, France, as it is famous for its quiet beaches and delicious oysters.
Territory Summary:
Le Mans, city, capital of Sarthe département, Pays de la Loire région, northwestern France. Situated in the former province of Maine, the city lies southwest of Chartres at the confluence of the Sarthe and Huisne rivers. Le Mans derives its name from the ancient Gallic tribe of the Cenomani, whose capital it was. In the late 3rd century CE, the Gallo-Romans surrounded the town with walls, parts of which still survive. Le Mans was mainly a market town for the agricultural products of the region until the mid-19th century, when new industries developed and later expanded, principally producing railway, motorcar, and agricultural machinery; textiles; and tobacco. Every year, 24 Hours of Le Mans, probably the world’s best-known automobile race, is held at the Sarthe road-racing circuit just outside the city. Nearby there is a museum of early motorcars.
Key Facts:
Population: 560,000 inhabitants in the Sarthe department / 3,790,000 inhabitants in the Loire region
Language(s) Spoken: French
Climate: Oceanic with Continental influence
Currency: Euros
Industry Facts:
Types of Architecture: 11th Century houses, renaissance, 19th Century with “Mancelle” type houses with slate roofs
Price per sq. ft/meter: Approx 2000/m2
Average years in house/apt: 7 years
Something else interesting? Le Mans is classified as the 6th best area to live in France, 2nd least stressful city in France, and the most advantageous area to invest (August 2021)
This Spring Presents Sellers with a Golden Opportunity
If you’re thinking of selling your house this year, timing is crucial. After all, you’ll want to balance getting the most out of the sale of your current home and making the best investment when you buy your next one.
If that’s the case, you should know – you may be able to get the best of both worlds today. Here are four reasons why this spring may be your golden window of opportunity.
1. The Number of Homes on the Market Is Still Low
Today’s limited supply of houses for sale is putting sellers in the driver’s seat. There are far more buyers in the market today than there are homes available. That means purchasers are eagerly waiting for your house.
Listing your house now makes it the center of attention. And if you work with a real estate professional to price your house correctly, you can expect it to sell quickly and likely get multiple strong offers this season.
2. Your Equity Is Growing in Record Amounts
According to the most recent Homeowner Equity Insight report from CoreLogic, homeowners are sitting on record amounts of equity thanks to recent home price appreciation. The report finds that the average homeowner has gained $55,300 in equity over the past year.
That much equity can open doors for you to make a move. If you’ve been holding off on selling because you’re worried about how rising prices will impact your next home search, rest assured your equity can help fuel your move. It may be just what you need to cover a large portion – if not all – of the down payment on your next home.
3. Mortgage Rates Are Increasing
While it’s true mortgage rates have already been climbing this year, current mortgage rates are still below what they’ve been in recent decades. In the 2000s, the average mortgage rate was 6.27%. In the 1990s, the average rate was 8.12%.
For context, the current average 30-year fixed mortgage rate, according to Freddie Mac, is 3.85%. And while recent global uncertainty caused rates to dip slightly in the near-term, experts project rates will rise in the months ahead. Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae, says:
“For homebuyers, we believe that borrowing costs will likely rise with the increase in mortgage rates….”
When that happens, it’ll cost you more to purchase your next home. That’s why it’s important to act now if you’re ready to sell. Work with a trusted advisor to kickstart the process so you can take key steps to making your next purchase before rates climb further.
4. Home Prices Are Climbing Too
Home prices have been skyrocketing in recent years because of the imbalance of supply and demand. And as long as that imbalance continues, so will the rise in home values.
What does that mean for you? If you’re selling so you can move into the home of your dreams or downsize into something that better suits your current needs, you have an opportunity to get ahead of the curve by leveraging your growing equity and purchasing your next home before prices climb higher.
And, once you make your purchase, you can find peace of mind in knowing ongoing home price appreciation is growing the value of your new investment.
Bottom Line
If you want to win when you sell and when you buy, this spring could be your golden opportunity. Let’s connect so you have the insights you need to take advantage of today’s incredible sellers’ market.
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