Monday, August 29, 2022 / by Kathryn Jones
Real Estate Opportunity Not Seen In Over 2 Years!
Man, 2022 has been interesting. Thanks to you and your referrals, we've been flourishing...but I wonder if you know what is happening out there. Crazy things afoot! In real estate AND personally. (I'll save the personal thing for last.)
I'm sure all of you know if you read my updates that 2021 was a crazy awesome year for sellers. Our buyer clients saw us HIGHLY CAFFEINATED all year long (and well into 2022), as we rushed to be the first to look at new listings, get offers written, contracts secured, and help folks get where they wanted to go. Then...it happened.
First, my wife entered her 5th decade. I know you're not supposed to tell a woman's age, but I just did, so now I'll try and recover and tell you there's some sort of "dog years" math at work there, because we've been married 27 years now and she looks 26. Math is hard.
ANYWAY....right about the time she had a birthday, the news exploded:
"Inflation at a 40 year high" and "Fed looks to raise interest rates by 3/4 a point in each of the next two months." I'm paraphrasing, but you get the picture.
We'd already begun to see some hesitation on the part of buyers, that I remember as early as March. Remember that Russia amassed their troops at the border of Ukraine during the Winter Olympics in February. We were still selling above list price for our sellers back then, but the buyers were starting to get nervous. We got fewer offers on each deal. It just felt different.
Then June's news rattled everyone. The news broke on a Friday and by Monday, lenders were quoting interest rates around 6.25%....the highest in YEARS. As I type this, the Fed Chairman has just made a speech in Jackson Hole, Wyoming. Looks like more hikes in the future.
This is not a doomsday thing, and mortgage rates are not the same as the Fed rate. The most recent hike was 3/4 of a point and yet mortgage rates fell back into the 5's. So don't panic....and recognize that there is OPPORTUNITY in every situation.
We see opportunities here for buyers. For the first time in 2 years or more....BUYERS have choices, and can negotiate. I've compiled a short video with impressive charts to try and demonstrate this visually.
I got the slides in the above video from this David Tandy Austin Market Update. For sellers, it's a case by case basis, depending on what you have, when you need to be sold by, and other factors. I'd encourage a phone discussion if this is what you're wondering about.
I got the slides in the above video from this David Tandy Austin Market Update. For sellers, it's a case by case basis, depending on what you have, when you need to be sold by, and other factors. I'd encourage a phone discussion if this is what you're wondering about.
So...what are your questions? Let's talk! Our main office line is 512-888-9205 or my cell is 512-698-RUSS. We are here to help you make EDUCATED decisions.
Now for the fun thing I promised. Are you aware that I have been writing Cowboy Poetry now for about 8 months? In April, I actually won an award in Wichita Falls for one of my original poems. I have some funny ones and some that are intended to stir the soul a bit.
Well, guess what happened? Debbie and I took our daughter to see Michael Martin Murphey recently at a venue in Red River, NM. I had an opportunity to bounce one off of him that I'd just written 2 or 3 days previous. He smiled, seeming to humor me, and then went back to what he was doing. I remember thinking "This is how you have to treat fans when you're famous...politely, and then escape."
Well....
Next thing I know, he' s halfway through his amazing set, and he starts talking about our conversation. Then he invites me to come ON STAGE and do the poem! My daughter managed to catch most of that on her phone. And of course....my wife was in the bathroom. LOL.
Here's a link to see Michael Martin Murphey introduce me. I hope you enjoy the poem.
