I know this market is not for the faint of heart! There is a lot of "information" online, on the news, coming from our "Uncle Jimmy" at Thanksgiving, that can make it hard to know what is "right".

Rather than share opinions, I try to focus on the data, on the facts. Here is a "Buyer Survival Guide" that accurately depicts the state of the market with facts, not opinions. 

Click this link to download.

If you, or someone you know, was waiting for "prices to drop/crash/fall/correct", etc., you may have already missed it. I watch closely a few different national measurements of how house values have risen/fallen, and the National Association of Realtors, Case-Shiller, and Freddie Mac all agree that prices (nationwide), dipped about ~1-4% this last summer of 2023, but have immediately turned around and started increasing again. See the blue circle below highlighting the "dip". 

What happened? Rates did rise and that suppressed demand. However, there is still a tidal wave of potential buyers that have been waiting for the right opportunity.

So long as there is demand, house prices will stay strong.

Also, you likely already know that a "homesale contingency" can put buyers at a disadvantage in a competitive situation. The buyer would be asking the seller to allow them to cancel the deal if they can't sell their current home in time - this presents risk for the seller. 

For that reason, we try to avoid the homesale contingency at all costs:

Here are 3 clever ways to avoid a homesale contingency:

1. Bridge loan – you can pay off your existing mortgage and/or take out a loan just for your equity so you have money available for your down payment! As an added bonus, most of my clients have little/no closing cost with this option for the bridge loan portion!
2. We can often do the bridge loan at the same time as the new purchase loan, which is convenient, and then the buyer doesn't need to apply for a bridge loan before they need it.
3. There are many versions of this type of loan, and the financing market has been changing rapidly over the last 12 months, so it doesn't hurt to double check if you, or someone you know, has explored all of their options!
4. Some people qualify to buy a new place with a 5% down payment (with money they have on hand, or borrow from a retirement account), and after selling their current home, lower their new mortgage balance. This process is called a “re-cast”.
5. This one is my personal favorite: Rent out your current home! We can use that new rental income to “Cancel out” your mortgage payment. That way you qualify for your new home as if you didn’t have an existing mortgage payment! 
6. I've actually prepared a spreadsheet to help homeowners analyze this situation. You can take a look at it here.
7. People are often overwhelmed or unsure of how to proceed with a rental property. I'm not going to pretend to be an expert, but I do have 4 long term rentals, and I am currently embarking on a short term rental, so I have some personal experience as well to share!

Questions on any of this? Don't hesitate to call / text at 414-488-0438!