?While the stock market has done exceptionally (some say, unreasonably) well despite the correction in the first week of September, it is the housing market that continues to be the cornerstone of our economy.
?Last month saw another record home price increase driven by the record low inventory and high demand aided by record low interest rates.
?Fewer homes were for sale last month than in any August in the past 20 years.
Jo Dixit, the co-founder of InBestments.com, has a unique vantage point being a Designated RE Broker and a Loan Originator. She mentioned that “the recent monthsâ historic low mortgage rates have helped keep inventory off the market, as many homeowners choose to refinance rather than sell. The year-on-year active inventory is down by 43%. But the pent-up demand from legions of home shoppers eager to take advantage of historically low-interest rates, some to leave apartments or upsize into larger spaces in the new work-from-home universe â didnât let up.”
On the mortgage front, the FHFA has delayed its surprise adverse 0.5% refinance fees until Dec 1, 2020. This 0.5% will make refinance costly. If you are doing a $300,000 refinance, you will be paying $1500 as an adverse refinance fee. If youâre considering refinancing your home mortgage, locking in a rate as soon as possible is encouraged.
Though the adverse refinance fee goes into effect December 1, many lenders will adjust their pricing to include it before that. To be on the safe side, itâs best to lock in your rate by early September.
“The few homes that are on the market are flying off, and this excess of demand is causing record-high prices for single-family homes, stated Vinod Sharma, CEO of InBestments.com, USA’s first residential real estate wealth platform. “In the four-county Puget Sound region comprising of King, Pierce, Snohomish, and Kitsap, year-over-year (YOY) prices jumped a whopping 17%.”
“In the four-county Puget Sound region comprising of King, Pierce, Snohomish and Kitsap, year-over-year (YOY) prices jumped a whooping 17%.”
?For perspective, if you bought a home say for $700k a year ago, this home is now valued at $819K thus adding $119k in wealth by way of price appreciation alone.
If you are looking to buy that dream home or a few investment properties the next two months of September and October will be the best months until next March for the greatest selection and availability.
There are 800+ cash-flow/income-producing properties listed below $600K on www.inBestments.com in King, Snohomish, Pierce, and Kitsap counties.