Curtis Rudolph Realtor: February 2015

Tuesday, February 17, 2015

Attention renters, rates are about to drop!

If you are a renter, relief is on it's way. Rental rates have been at an all time high for a few years now. However, if you are a landlord, I see trouble ahead.

This is my opinion of the buying, selling and renting of real estate for 2015.
Mortgage interest rates are about to climb, according to all the rumors coming from the new Fed Chairwoman, Janet Yellen. They've been near zero for many years to help stimulate our wobbly, but growing economy.

Many home owners were hit hard when the economy tanked. Homes were forfeited to the banks and hedge fund conglomerates were gobbling them up and renting them back to those that were displaced.

It's been 8 years since the peak and 4 years since the bottom.

Most hurt during the great recession have recovered financially and have been trying to time out re-entering the market to get the lowest rate as they heal their credit and rebuild capital for a downpayment.

That time is now as interest rates are wobbling around a once-in-a-lifetime low.

However, everyone seems to be sitting around and not taking action. This holding back is causing a pressure cooker situation of buyers.

When the Fed says "let them rise", the pressure cooker full of buyers will surge to the market buying up the inventory. New homes entering the market will sell at top dollar as the rates rise and inventory will be low.

Where did these buyers come from?
These buyers were all renting!

Rental homes will flood the market as these buyers leave that market.
Vacant rentals, cost owners a lot of money.
They would rather slash the price, then let it sit empty.

I expect this to occur now through June and then go crazy through the summer and fall.
If you are buying, buy now! Rates may never be this low again in our lifetime.
If you are renting, buy now! Rates may never be this low again in our lifetime.

Or if you can't buy, be willing to negotiate to stay or find someone willing to accept your price.
Don't be scared! The landlord would appreciate the reduced rate more than a vacant rental and pray for a new tenant.

Buying, selling or renting in the Tampa bay market?
I do that!

Curtis Rudolph Realtor®
813.240.6054 cell/text
Realty Direct Tampa
www.CurtisRudolphRealtor.com

Wednesday, February 4, 2015

Buyer beware! Rising interest rates will do opposite of what you think!

Traditionally, when mortgage rates go up, the price of homes go down. However, unlike history, raising interest rates this time will do the opposite. Interest rates have been so low for so long, it's become expected and has caused buyers to take the wait and see approach.

Mortgage rates are near historical lows. Freddie Mac reported last week that a 30 year fixed rate mortgage averaged 3.66% and a 15 year fixed rate mortgage rate averaged 2.98%.

In my opinion, we won't see rates like this again in our lifetime.

Janet Yellen at the Federal Reserve continues to hint that she plans to raise its target federal funds rate the middle of this year, which will cause mortgage rates to rise. Many economists predict that a 30 year fixed rate mortgage will average 5% by the end of the year.

This move by the Fed will cause a surge of buyers that have been sitting on the fence to jump into the buying game.

The laws of supply and demand will prevail.

Current inventories will be purchased and new supply will be less than demand, causing a sellers market. Sellers can ask what they want, because there will minimal competition.

The Fed is asking the markets to be patient when asked the timing, describing it's approach to picking the time to raise the target rate. So, buyers beware! The clock on a low mortgage rate is ticking!

Homebuyer's need to move fast if they want to get a low price and a low interest rate, according to Realtor.com. In my opinion, affordability may decline as much as 10% this year. So, get in the game!

Buying or selling a home in the Tampa bay area?

Call me today!

Curtis Rudolph Realtor®

813.240.6054 cell/text