“In addition to a full-percent interest rate cut, the Fed will take other stimulus steps, saying COVID-19 “weighs on economic activity and poses (economic) risks.” The move should benefit adjustable rate mortgages, credit cards and other short-term loans.”
“The Federal Reserve took emergency action Sunday and slashed its benchmark interest rate by a full percentage point to nearly zero (0% to 1/4%) and announced it would purchase more Treasury securities to encourage lending to try to offset the impact of the coronavirus outbreak. The central bank said the effects of the outbreak will weigh on economic activity in the near term and pose risks to the economic outlook. The central bank said it will keep rates at nearly zero until it feels confident the economy has weathered recent events.
The Fed also said it will purchase $500 billion of Treasury securities and $200 billion of mortgage-backed securities to smooth over market disruptions that have made it hard for banks and large investors to sell Treasuries.”
Archive for month: March, 2020
“ATTOM: The business of buying single-family homes to rent lost some steam after rents stopped increasing as fast as the purchase cost for those rental properties.
“The business of buying single-family homes for rent has lost a little steam this year across the United States as rents aren’t rising quite as fast as prices for investment rental properties in the majority of the country,” says Todd Teta, chief product officer at ATTOM Data Solutions.
“But from the national perspective, things are generally holding steady for landlords in the single-family home rental market,” he adds. “Also, profit trends are moving in favor of investors in higher-rent counties and against those in lower-rent regions.”
As I write this market report, I realize there are two very important aspects of how we are all evaluating the real estate market today. Certainly the numbers from the most recent market report of January 2020 tell a story but also the recent stock market tumble in light of the corona virus concerns is top of everyone’s minds.
Let’s start by talking about January results because they are important to decisions we all will be making today to sell or buy in Florida. First – January was a great month in Florida Real Estate – especially in Palm Beach County. When comparing to January 2019, January 2020 showed an increase in the number of sales, both average and median prices and total dollar volume. However, new listings were down from January last year as well as December 2019 – for a myriad of reasons. What does this mean to our Palm Beach County market? – Well, we now have less inventory and as a result for the market from $300,000 to $599,999 – we have a balanced market – so, therefore, buyer’s make realistic offers and seller’s realize that there is no longer an advantage in a balanced market so before you choose not to respond to an offer – maybe consider a counter! With inventory trending down this balanced market condition may change – stay tuned. The higher end market, however, is a different story – over $600,000 and upwards of the $1,000,000 mark it is still a buyer’s market – a great amount of homes are sitting – over $1 million shows 19 months of inventory – reminder that 6-9 months is considered a balanced market. If you are holding out for a cash buyer, we would suggest reconsidering – cash sales as a percent of all sales is around 37% – but with the interest rates so low, the cost of borrowing money is even more desirable. What do we recommend? That we as agents, dig deep into the pre-approvals – talk to the lenders who pre-approved the buyer – have they run credit, have they reviewed tax returns or w2s? IN other words how far into the process did they go and do they have any concerns? Homes are being sold – the process, as always, needs to be properly managed and homes need to be properly marketed!
As for our recent turn in the financial markets – and how this will impact real estate in Florida – Personally, I believe homes will continue to move in Florida – we may simply have to adjust how we show and how we all work together to get homes sold. There is even more value in videos and remote showings – photography is critical. Also – how we interact at face to face showings – for now we simply don’t shake hands – we just need to be smart about how we do business – in any field right now.
Join us as we support the important work of The Achievement Center for Children and Families. Click Here for more Information about The Achievement Center for Children and Families.
Now in its 19th year, the Delray Beach Home Tour draws hundreds of guests from all over South Florida and beyond for an exclusive tour through some of Delray Beach’s most distinctive residences. Guests enjoy a leisurely day of exploring unique residences, a catered luncheon and trolley service between homes. With over 600 attendees, 100 volunteers, and dozens of community supporters, this well-orchestrated signature event raises much-needed funds for the Achievement Centers for Children & Families. This year’s Home Tour will be in the Lake Ida Neighborhood of Delray Beach and features a wide variety of architectural styles and design elements that provide home decorating enthusiasts an inside look into the world of distinctive Delray living.
As real estate professionals, our goal is to ensure that our clients have the best experience when buying or selling a home. We, as real estate professionals, are in one of the few industries where competitors must work directly together to accomplish their goals.
From the initial showing all the way to closing we are side-by-side working through issues and ensuring that our respective clients have a wonderful experience. Why is this important?
Aside from providing a positive, stress-free experience for consumers – it can lead to referrals! There is no greater compliment than a referral from a past client! To have our phones ring is the key (no pun intended) to our success.
Click to read the full article By Noreen Payne
AMY STARK SNOOK,
Phone | 561-571-2289
All About Florida Homes