For our communication this week, we wanted to share some real estate news making headlines.
On Wednesday, The US Federal Reserve announced that it would cut interest rates for the first time since the Great Recession in 2008. While the federal interest rate doesn’t go hand in hand with mortgage rates, they oftentimes follow. “Lawrence Yun, the chief economist at the National Association of Realtors also believes the rate cut will have little impact on the 30-year mortgage, as the decline had already been anticipated. Still, other types of borrowers – those with adjustable-rate mortgage and commercial real estate loans – will benefit from the rate cut” https://www.inman.com/2019/07/31/fed-cuts-interest-rates-what-it-means-for-the-housing-market/.
Foreign Purchases of US Residential Real Estate: On a national level, it’s always helpful to have an overall understanding of the real estate market. Economist Elliot Eisenberg noted last week: “In the year ending 3/19, foreign purchases of US residential real estate declined to $77.90 billion, down from a peak of $153.01 billion two years ago, their weakest level in six years. Chinese buying activity declined the most; by 50% or $13 billion in just one year. Slowing global growth, a Chinese trade fight, and a rising dollar are why. Impacts are being most felt in luxury sales” https://econ70.com/2019/07/24/alien-acquisitions/.
Home Renovation ROI: Homeowners often want to spend money on renovations that will yield a return. Here’s one of the most helpful tips to consider: don’t get rid of the bathtub. “Large, luxurious standing showers are trendy, but getting rid of a bathtub altogether could prove to be a costly mistake. ‘Families with small children will most likely want a bathtub,’ says Jean Brownhill, CEO and founder of Sweeten, which matches homeowners with contractors. ‘Older homeowners will more likely want a walk-in shower for accessibility’s sake. Think about your neighborhood demographics and who has been moving in and out. If it’s largely an older demographic, building a walk-in shower is probably a good idea. If it skews younger, keep that bathtub’” https://magazine.realtor/daily-news/2019/07/31/renovations-with-the-worst-roi. Take a look at the article for more tips on ROI.
As always, please contact us with any questions you may have regarding the real estate market. This weekend, we will be holding an open house on Saturday from 10-12 at 29010 US Hwy 160. We would love you to stop by and say hello!