Fall marks an end to summer. But in the mortgage world it can be a fast moving time of year. Chong talks about Fall Market Tips with Ana Dubin and Bob Myers of The Myers Team, RE/MAX Services. They dip in to how the potential recession may affect real estate and mortgages.
GDW Summer is wrapping up and fall is almost here. There’s not only a change in the weather, but it’s not always a colder economic climate. That’s the good news.
GDW Chong Yi is back, along with Ana Dubin and Bob Myers of The Myers Team at RE/MAX Realty Services. Thank you all for coming.
GROUP Thanks for having us!
GDW So we’re changing seasons but you’re still saying that the market is still very good to go out and buy. What are some fall market tips?
BOB It is. We’re just finishing up spring market and summer. We’re dealing with buyers who are trying to buy homes before the school year starts. That’s one of the factors that we’re dealing with. Interest rates are very low right now, so that’s going to help the market considerably. What are your thoughts Ana?
“As long as your house is well priced and well staged, you will get quite a response.”
ANA Honestly a lot of people think that the fall is a big slow down against the hot spring. We’ve had an increase in terms of an uptick, as long as your house is properly priced. Bob just had a competitive offer situation last week. As long as your house is well priced and well staged you will get quite a response.
GDW The staging we talk a lot about. Bob, what are your tips for that?
BOB I know! I try to say to homeowners that they should think of how they would prepare themselves for a first date. That is the impression that you need to make when someone is walking through your house for the first time. You have one shot at a first impression.
GDW Inside AND outside. Inside is taken care of but it’s the outside is the first look.
CHONG That’s why I never get second dates! I never get second dates! I don’t listen to Bob. I’m a moron.
GDW We also talked about, if your house went on the market in early spring. Maybe they didn’t listen to their realtors and price it at what you suggested. Now is the time to lower that price? What is your best fall market tip?
“If you didn’t get the sort of response that you anticipated during this past spring, which was one of THE HOTTEST springs that we’ve seen in a while. Then you need to revise you price.”
ANA Definitely. If you didn’t get the sort of response that you anticipated during this past spring, which was one of THE HOTTEST springs that we’ve seen in a while. Then you need to revise you price. Listen to your agent. Have them walk though. Give you their honest feedback. We tend to be very honest with our clients, to a fault. We’re protecting their best interests.
GDW You guys are the professionals. You mentioned the interest rates. Chong, there are some big cuts there. It’s the lowest we’ve seen in a while? Where are we?
CHONG The Federal Reserve cut rates back in July. Actually end of July. “Back in July” like it was so long ago! Haha!
“Federal Reserve cut [rates] for the first time in 10 years…Interest rates are going to go low”
CHONG They cut it for the first time in 10 years. What that means, and this is the misnomer that many people think, it’s not directly affecting mortgage rates. It’s affecting the short term rates of how banks loan to other banks. But that does have a really big affect on how mortgage rates are derived. Essentially what they’re saying is they’re cutting rates because they see a little bit of weakness in the economy. By lowering the interest rates, they’re allowing more money to be lent to other banks so they can actually hire more and pump out more money into the economy.
CHONG So what does that mean for us mortgage rates-wise? It means that interest rates are going to go low. I don’t want to say the “R” word but I think we’re going to be going into a recession shortly. Shortly could mean 6 months, it could mean 24 months. The way we’re headed, that’s where we’re going. For us in housing, it’s a great thing. Interest rates are going to go lower. I don’t want to say how low, but low 3% potentially.
GDW How low can you go?
CHONG Exactly. So if you own an house now, oh my goodness, is the value of your house going to go up! And if you don’t own a home now, then you should be buying because what you buy today is going to be worth more tomorrow. That’s my fall market tip.
GDW Oh! I like that.
“Labor Day is also a time when the market picks up.”
ANA Definitely. Some of the people that I’ve been speaking to last year that have been pre-approved and kind of on-the-fence are much more motivated and coming back into the fold. They’re seeing now is the time to pull the trigger.
BOB Labor Day is also a time when the market picks up. Between Labor Day and Thanksgiving. After that is really the slowest time of the year, between Thanksgiving and New Years. Just for the holidays.
GDW Get your house out there now, before the rush. Great fall market tips.
CHONG Bob mentioned this earlier, the inverted Yeild Curve. We won’t go into that. That’s a whole other different conversation. But both of these guys have said this earlier. The amount of money you make on the sale of your home is paramountly dependent upon you have to listen to your realtor. If you price it too high, you’re going to make less. If you price it just right you could make more.
GDW In a bidding war!
CHONG Right, in a bidding war.
GDW Chong, Bob, Ana. Thanks so much for being here and sharing your fall market tips. As we head to the end of summer to the beginning of fall. If you want to inquire about a new mortgage or refinancing, contact Chong Yi of The Yi Team at www.theyiteam.com.
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