Home affordability is gone

Memorial Day Weekend.

The 2024 Spring buying and selling season is coming and going quickly. Not much comes to mind that has changed in favor of the home buyer. A touch more inventory in some pockets but the cons keep stacking up.

Affordability needs to ease up on all of us!

So, fortunately or unfortunately, we are in the position to go down the list with everyone that has interest in participating in this housing market and attempt to get prepared.

Worse than going to the dentist…. the pre-approval process…. not for the faint of heart 😊

We are making you look reality in the face as we walk you through this below:

• Mortgage Rates – up!
• Property Taxes- up!
• Homeowner’s Insurance – up!
• Homeowner’s Association Dues – up!
• Material and labor expense for improvements/repairs – up!
• Closing costs – up!
• Utilities – up!

Those are the easy ones… what about these?

• Car Insurance – up!
• Health Insurance – up!
• Current Monthly installment debt
• Current Monthly revolving debt

We are not done yet…

• How much have you saved? Prove it.
• How much do you earn? Prove it.
• What is your credit score? Prove it.

Once you do get your pre-approval letter, the easy stuff is done, and you face the wrath of running into a seller who is holding out to get top dollar or staring at multiple offers on their home. Constant challenges and emotional swings (I can do this – I quit and will continue to rent) along the way.

All of this leads to purchase mortgage applications plummeting to levels last seen in 1995. The same level of transactions as 1995, but with an additional eighty million folks living in the US!

It certainly feels like something needs to give or change….

Will it be the Federal Reserve cutting rates?

Will it be a newly elected president in November?

Will a recession grip the nation with high unemployment?

Although it may not be a suitable time for most to buy a new home, it is the right time for others, and we are here for you.

We pride ourselves on not only sharing the latest mortgage products, but also sharing things you might not be thinking of to help home buyers proceed with extreme confidence to help their success.

Cheers!