What is happening with interest rates? Realtors' businesses are picking up steam, even though we know rates are ticking up. The 10-yr Treasury just hit a high since 2011 (3.51%), and Sweden just raised their bank rate by 100BPS last night! As the FED gears up to meet again and controlling inflation remains top of mind, they've got a .75-1% FED rate increase on the table. We know the recession is coming, and the FED is trying to fast-track it so that consumers will finally stop spending!
But if realtors are seeing a pick-up and are anticipating a solid October, WHY?
The text number is 855-930-0377. Text UPDATE to be added to the list
Some of what you'll learn in this 18-minute episode includes:
"If I purchase a median home last month in August, the median DMAR 11-county area home price was $579,900.
I buy a $579,900 home with 5% down, I'm putting down $28,995.
If I get a 6% interest rate and I get a 3.8% appreciation because that's what Core Logic is expecting that we're going to see for the next year forward, 3.8%, not the crazy double digits that we've seen.
Historically before the pandemic, the United States appreciated 3.6%. So we're returning back to normal.
So if I have a 3.8% appreciation in five years, I have a gain.
If that stays consistent with principal reduction every single year, knocking down my loan amount and a little bit an increase in value of 3.8% because I only put a limited number amount down and the power of leverage. I have the opportunity of that entire home value going up at the purchase price, not my down payment.
That's going to give me a net worth of $161,000.
I can't make that in the stock market in the next five years, unless your chooser is spot on because mine's broken. I can't make $161,000 in the next five years. And even if we see a dip and a slowdown, which again, because we have so limited supply, but even if the whole secret is don't sell, don't sell. Hold on through the dip and for the next five years. And that's where you're going to regain this opportunity.
In fact, year one with a 3.8% appreciation and the principal reduction based on a 6% interest rate, I actually make a 102% on my down payment.
I put down $28,995. I'm going to net out in equity gain $29,588.
That's just math, right? That's not a motion. That's just math."
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Investing in Real Estate in the Denver Market
Why Would You Buy Real Estate Today?
Is it Boom or Gloom for the Housing Market?
DMAR August 2022 Recession Red Flags Have Been Drawn
How Does an Appraisal Work, and Do I Need One?
Three Steps to De-stress the Home Buying Process
Where is the market heading and what does it mean for homebuyers?
What to Tell Clients About Today’s Housing Market
A Higher Interest Rate Can Save You Money
Is the FED Hurting Housing?
DMAR July 2022 - Inventory is double but it is not enough
What are three ways to get into the housing market, today?
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Buying a Home Today - Why I Shouldn’t Rent
3 Shorts on DTI - Debt to Income Ratio.
What is an Appraisal Waiver and Can I Get One?
Why Are Interest Rates Going Up So Fast?
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