Rates
Well we knew it wouldn’t last, rates just statistically be this low with all the good economic news.
So this week we have seen the correction we thought we would, and rates pull back from almost going into the 3’s and now have settled in the low 4’s.
But we really can’t complain, rates in the low 4’s, really!
This week it was once again about Europe, with their Central Bank once again trying to stimulate their economy by dropping their lending rates to record lows, AND they are encouraging banks to start lending by for the 1st time, charging banks to hold their money. So banks are better off lending to other, because if they hold their money in the European Central Bank, it is gonna cost them!
US economic news was all pretty good:
-ISM manufacturing came in at a VERY strong 56 vs est. of 55.4
-Factory orders came in 0.7% vs est. of 0.5%
-ADP private payroll in at 179K vs est. of 210K, little low, but positive.
-Jobless claims 312K vs est. of 310K, still low and getting closer to <200K
-Non-Farm payroll 217K new jobs vs. est. of 210K, nice number
So this week was a little roller coaster, but the overall line is rates worsened this week.
I suspect our mini correction is over, next week will be a whole new batch of numbers, we are in a cautious float, but at these levels, I think I would lock.
Taxes
Well assessments came out this week for ADA and Canyon counties, WOW, that is all I can say WOW.
The values are HUGE, and we are getting more and more people calling asking if they can refinance and cash out. I also got quite a few leads for people who want to purchase and have referred them out of people who want to sell.
BUT the drawback will come when everyone’s tax bill comes due, I have seen houses jump from $1080 tax bill to $1789, OUCH.
The Market
Ok, I am going to call it, April we have switched from a Seller’s Market to a Buyer’s Market, maybe early May, but we are definitely seeing a switch. I am going to wait for some statistic to prove it, but we are switching because:
1-Home prices have gone through the ROOF and the assessments just proved that, so we are seeing more and more people come onto the market.
2-Home prices have gone through the ROOF, which has priced many people out of the market, try finding a home <$100,000 in Ada County.
3-We are seeing more and more offers being accepted less than listed price and more and more price changes.
4-Builders are offering incentives again.
So what does this mean, well, I thing we are going to go through a mini price recession, whereas prices will plateau and maybe even decline a little. We are not seeing wages increase in this area, but home prices and taxes are, so less and less people who are qualified for a home, are not going to be able to afford a home.
I anticipate the summer being a hot market for buyers that qualify as so many home owners see their assessments, call Realtors and get homes on the market.
Did I mention WOW on assessed values!
Lead Generator
Well let’s take that WOW and make some money, Lead Generator.
It is a GREAT time to call up all of your existing clients and ask them if they have reviewed their assessed value and if they have any questions.
And if they are thinking about moving, because you would gladly do a FREE CMA on their home, because their assessed value is only based on the market from 1/1/2013 to 12/31/2013, and being it is June, values have probably gone up another 10-15%.
Also nice time to send out mailers or cards!!! Just in the phone calls I have received this week, I know there is LOTS of chatter in the counties regarding assessments.