Homebuyers Are in the Mood to Buy Today

Homebuyers Are in the Mood to Buy Today | MyKCM

According to the latest FreddieMac Quarterly Forecast, mortgage interest rates have fallen to historically low levels this spring and they’re projected to remain low. This means there’s a huge incentive for buyers who are ready to purchase. And homeowners looking for eager buyers can take advantage of this opportune time to sell as well.

There’s a very positive outlook on interest rates going forward, as the projections from the FreddieMac report indicate continued lows into 2021:

“Going forward, we forecast the 30-year fixed-rate mortgage to remain low, falling to a yearly average of 3.4% in 2020 and 3.2% in 2021.”

 With mortgage rates hovering at such compelling places, ongoing buyer interest is bound to keep driving the housing market forward. Rates also reached another record low last week, so homebuyers are in what FreddieMac is identifying as the buying mood:

“While the rebound in the economy is uneven, one segment that is exhibiting strength is the housing market. Purchase demand activity is up over twenty percent from a year ago, the highest since January 2009. Mortgage rates have hit another record low due to declining inflationary pressures, putting many homebuyers in the buying mood. However, it will be difficult to sustain the momentum in demand as unsold inventory was at near record lows coming into the pandemic and it has only dropped since then.”

There’s no doubt that even though buyers are ready to purchase, it’s hard for many of them to find a home to buy today. Mortgage rates aren’t the only thing hovering near all-time lows; homes available for sale are too. With housing inventory as scarce as it is today – a nearly 20% year-over-year decline in available homes to purchase – keeping buyers in the purchasing mood may be tough if they can’t find a home to buy (See graph below):Homebuyers Are in the Mood to Buy Today | MyKCM

What does this mean for buyers?

Competition is hot with so few homes available for purchase and low mortgage rates are helping to drive affordability as well. Getting pre-approved now will help you gain a competitive advantage and accelerate the homebuying process, so you’re ready to go when you find that perfect home you’d like to buy. Working quickly and efficiently with a trusted real estate professional will help put you in a position to act fast when you’re ready to make your move.

What does this mean for sellers?

If you’re thinking of selling your house, know that the motivation for buyers to purchase right now is as high as ever with rates where they are today. Selling now before other sellers come to market in your neighborhood this summer might put your house high on the list for many buyers. Homebuyers are clearly in the mood to buy, and with today’s safety guidelines and precautions in place to show your house, confidence is also on your side.

Bottom Line

Whether you’re looking to buy or sell, there’s great motivation to be in the housing market, especially with mortgage rates hovering at this historic all-time low. Let’s connect today to make sure you’re ready to make your move.

Real Estate Will Lead the Economic Recovery

Real Estate Will Lead the Economic Recovery | MyKCM

With more U.S. states reopening for business this summer, and as people start to return to work, we can expect the economy to begin improving. Most expert forecasts indicate this economic recovery will start to happen in the second half of this year. As we get back to work and the financial landscape of the country begins to turn around, many experts also agree that real estate has the potential to lead the way in the recovery process.

According to Ivy Zelman of Zelman & Associates:

 “Housing will fare better than expected during this severe downturn.”

In addition, CNBC notes:

“Mortgage demand from home buyers shows unexpectedly strong and quick recovery…The quick recovery has surprised most forecasters.”

Robert Dietz, Chief Economist and Senior Vice President for Economics and Housing Policy of the National Association of Home Builders (NAHB) says:

“Overall, the data lend evidence to the NAHB forecast that housing will be a leading sector in an eventual economic recovery.”

One of the big reasons why housing has the potential to be such a driving force is the significant impact it has on the local economy. This impact is particularly strong when a newly constructed home is built and sold. According to a recent study by the National Association of Realtors (NAR), the average new home sale has a total economic impact of $88,416. As outlined in the graphic below, this is a combination of income generated from real estate industries, expenditures, and new home construction.Real Estate Will Lead the Economic Recovery | MyKCMWith so many unknowns today, especially in the wake of a worldwide pandemic, one known factor is the bright spark the housing market can play in local and national recovery. Buying and selling a home goes well beyond personal growth and satisfaction – it supports our economy as a whole.

Bottom Line

According to experts, the economy will begin to recover in the second half of this year. With real estate as a driver, that recovery may start sooner than we think.

Ultimate Indoor/Outdoor Living in Russian Hill

Constructed in 2014 and part of a boutique 3-unit building, this 3 bedroom, 3.5 bathroom Russian Hill condominium is the ultimate in indoor/outdoor living. The finest finishes and every amenity rule.

Beautifully configured for entertaining, the dramatic great room opens onto a spacious, sunny terrace with an outdoor kitchen with a Fire Magic grill, Soleic outdoor cabinets, a Dekton countertop, and a gas fire pit. The deck flows out to an expansive south-facing garden that has been enhanced with an outdoor approximately 20-foot Christie projector movie theater with surround sound, perfect for movie night or large gatherings to watch your favorite sporting event. This lovely home is distinguished by its exquisite craftsmanship and inspired selection of appointments. The bright chef’s kitchen boasts Calacatta marble counters; Bertazzoni and Miele appliances; and abundant Liecht custom cabinetry and an expansive island.

The three bedrooms’ stunning en-suite bathrooms are appointed with Carrara marble, French limestone, and Waterworks fixtures. The suite on the lower level opens onto its own deck leading to a luxurious custom Nordic six-person sauna with LED controls. With a 288 sq. ft. upper deck*, a 1464 sq. ft. backyard*, and a 216 sq. ft. lower deck (not including the sauna)*, this home is the ultimate entertaining space.

The icing on the cake at 827 North Point is the electronic systems that are present, which include: Crestron home-automation system controlling aspects of the home directly from your phone, wherever you have service; a Sonos and Marantz sound system with Definitive Technology in-ceiling speakers in the living areas, bedrooms, and bathrooms; Sonance outdoor speakers through the yard and patio; 5.1 channel surround sound home theater in the living room; Lutron automatic lighting controls; multimedia wiring for Cat-6 network and distributed audio and video; a QMotion automatic shading system with remote controls; a Siedle front door entry system with a video and intercom; and a Crimewatch alarm system with sensors and cameras on all external doors. The home is completed by a convenient in-unit laundry (washer and dryer included), energy-efficient multi-zone radiant heat with Nest thermostats; and one-car parking and storage in the building’s garage.

*All sq. ft. measurements are per appraiser.

Contact Michelle Balog at (415)810-7890 for more information.