Joe Knows Mortgages

All signs point to rising interest rates.  The inflationary fears have started to materialize and have affected the Bond markets.  Over the next few years, Trillions of dollars will be pumped into the economy, and many fear that this will cause hyperinflation.

Because interest rates are determined by the price and yield of Mortgage Backed Securities, when consumer confidence comes back, there will be a flight away from fixed income instruments, and towards equities or stocks.  In other words, money will stop flowing towards bonds, and will start moving towards other items that will more likely beat inflation.

While bonds offer a fixed rate of return and are stable, in times of inflation, your rate of return may not be beating inflation.  When there is less demand, the price of the bond will go down, and the yield will go up; the yield is the interest rate.  Again, this means that interest rates are headed up.

What does this mean?

Rates are still low; however, we know that they are heading up.  If you know ANYONE who is looking to purchase a home or Refinance their existing home, it is time to let them know that they need to act soon.  A rise in interest rates will mean decreased purchasing power and increased costs.  Rates are still relatively low, and prices are still low; it is still a great time to buy a home!

With over 25 agents attending from 10 different offices from all over Brevard County, this event was a wild success.  While giving exposure to the property is the goal, it is also nice to have a time to speak with your professional peers from a myriad of different offices.

For those who attended, thank you for previewing this spectacular property.  Please keep this wonderful home in mind when you have buyers that are looking for the very best. 

For those who did not attend, I hope to see you at next month’s event.  If you did not receive an invite, and would like to attend future events, please contact Joe Harris at joeharris321@gmail.com

This months Luxury Home Showcase will be in the Exclusive Cloisters Community.  This event is by invitation only.  If you would like to be on the invite list for next month’s event, please email Joe Harris.

 

Opportunity Everywhere!

 

After completing my market analysis for April, I continue to see that Brevard County remains one of the best values in coastal florida.  Between the rivers, and the beaches, where else can you enjoy such a high quality of life, and pay such a reasonable price for a house?

Check this out!  80% of the sales of single family residences in the month of April are under $200,000.  That means that home pricing has presented an opportunity for more people to achieve the dream of home ownership.

While the low priced sales get the majority of the attention, we are still experiencing many move up buyers, and first time buyers in the $200,000 to $500,000 range.  With 98 sales in this range, many are finding outrageous bargins that simply can not be passed.

                As you can see from the financing stats, cash is still king!  35% of buyers in April chose to pay cash for the property.   This is a good thing; this means that people are looking at the real estate in our market and saying that the prices are so low, it is worth risking their cash to purchase the property.  In years past, roughly 10% of purchases were done with cash.

One of the biggest misconceptions is that there is no financing and lending available right now.  I am here to tell you that is just not the case.  With the overwhelming majority of 64% of the transactions being financed, you may clearly see that money is available.  Not only that, the money is cheap!  Buyers have been getting historically low interest rates.

As a professional living and working in Brevard County, it is great to see home prices that are affordable to many.  It has been said many times over that in times of disparity there is opportunity.  Right now you can buy a house at a deep discount, at historically low interest rates, to give you one outstanding opportunity!  If you have the means to purchase a home, there is truly no better time than right now.