{"id":4037,"date":"2018-11-21T09:14:35","date_gmt":"2018-11-21T14:14:35","guid":{"rendered":"https:\/\/dankrell.com\/blog\/?p=4037"},"modified":"2019-04-25T06:57:55","modified_gmt":"2019-04-25T10:57:55","slug":"real-estate-thanksgiving","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2018\/11\/21\/real-estate-thanksgiving\/","title":{"rendered":"Real Estate Thanksgiving"},"content":{"rendered":"
\"real<\/a>
A Real Estate Thanksgiving<\/figcaption><\/figure>\n

Thanksgiving is a time to take stock and be thankful.\u00a0 Although the original Thanksgiving may have had a religious purpose, today\u2019s secular holiday is about traditions.\u00a0 However, it seems as if the tradition of enjoying a peaceful meal with family and friends has been increasingly difficult over the past few years.\u00a0 But since the election is over, let\u2019s try to talk about something worthy of discussion (at least until the next election cycle begins), such as real estate and housing. Yes, it’s a “Real Estate Thanksgiving.”<\/p>\n

Why shouldn’t we focus on something we all can get behind? There is a good chance that your dinner guests will include someone will be moving next year<\/a>.\u00a0 Whether they are buying, selling, or renting a home, someone at the dinner table will be affected by such issues as housing affordability, mortgage rates, and availability of homes.<\/p>\n

Things to talk about during your Real Estate Thanksgiving might be about mortgages, home sales, home prices, rent, maintenance, etc.\u00a0 The topics are seemingly endless.<\/p>\n

Talking about mortgages during the Real Estate Thanksgiving.\u00a0 The current news is about mortgage interest rates<\/a>.\u00a0 How high will mortgage rates go?\u00a0 Housing experts agree that mortgage rates will likely be about 5 percent next year (although the Fed just announced they may hold off on interest rate hikes after spring).\u00a0 Paying more interest on your mortgage may not be your idea of positively affecting home sales.\u00a0 However, increasing mortgage rates typically moderate home price growth because of affordability.\u00a0 Another silver lining of increasing interest rates is a stimulated lending environment.\u00a0 As a result, mortgage companies will likely further loosen lending requirements, which will increase the home buyer pool.<\/p>\n

Real Estate Thanksgiving and home sales could focus on the reasons for the fall slowdown.\u00a0 Will home sales<\/a> rebound this spring?\u00a0 You\u2019re probably aware that home sales have dropped off during the fall.\u00a0 Major media outlets have grasped the news and created the meme depicting \u201chousing bubble 2.0.\u201d\u00a0 You can\u2019t really blame them because there are many economists who are projecting bleak home sales to continue through spring.<\/p>\n

The main reason for a disappointing 2019 forecast given by many industry insiders is affordability.\u00a0 I contend that this rationale is shallow and one-dimensional.\u00a0 There is no doubt that rising interest rates and increasing home prices are on the minds of home buyers.\u00a0 However, the lack of home sale inventory is a dimension that is often forgotten when discussing home sales and rentals.\u00a0 The lack of available homes for buyers and tenants to choose has forced many into fierce competition.\u00a0 The result has been upward pressure on home prices and rents.<\/p>\n

You have to also consider the economy at your Real Estate Thanksgiving. The strength of the economy<\/a> is an aspect affecting the housing market that many haven\u2019t discussed.\u00a0 Whether you want to admit it or not, the economy is the strongest it has been in decades.\u00a0 Consumer outlook is optimistic.\u00a0 Home buyers and renters have expressed confidence about their job prospects too.\u00a0 Employers are competing for talent, influencing the highest wage increases in over a decade.<\/p>\n

Commenting on the economy, First American chief economist Mark Fleming believes that the economy will be a major force in the housing market (How Will a Potential September Rate Hike Impact Existing-Home Sales?<\/em><\/a>; blog.firstam.com; September 18, 2018).\u00a0 One of the features of his analysis for 2019 is \u201cIt\u2019s the Economy and First-Time Home Buyer Demand, Stupid.<\/em>\u201d\u00a0 He described a pent-up demand from a wave of millennial of first-time home buyers who will be in the market next year.<\/p>\n

Fleming explained that home sales slump during an adjustment period that home buyers undergo when interest rates increase.\u00a0 The same thing occurred in 2010 when rates increased from 4.5 to 5 percent.\u00a0 However, the economy was struggling at that time, and home sales were stagnant.\u00a0 Fleming described First American\u2019s positive housing forecasts overcoming rising interest rates, saying,<\/p>\n

\n

“According to our Potential Home Sales Model, the boost from the strong economy and first-time home buyer demand should overcome any downward pressure from rising rates on home sales<\/em>.\u201d<\/strong><\/p>\n<\/blockquote>\n

Original article is published at https:\/\/dankrell.com\/blog\/2018\/11\/21\/real-estate-thanksgiving\/<\/p>\n

By Dan Krell<\/a>. Copyright \u00a9 2018.<\/p>\n

If you like this post, do not copy; instead please:
\nlink to the article<\/a>,
\nlike it on facebook<\/a>
\nor re-tweet<\/a>.<\/p>\n

\"Protected<\/a>
\nDisclaimer<\/a>. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.<\/p>\n","protected":false},"excerpt":{"rendered":"

Thanksgiving is a time to take stock and be thankful.\u00a0 Although the original Thanksgiving may have had a religious purpose, today\u2019s secular holiday is about traditions.\u00a0 However, it seems as if the tradition of enjoying a peaceful meal with family and friends has been increasingly difficult over the past few years.\u00a0 But since the election … <\/p>\n

Continue reading “Real Estate Thanksgiving”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[567,234,1012,288,29,17,225,13,26,27,356,1170],"tags":[516,966,893,511,466,445,500,807,821,1174,797,593,1060,517],"class_list":["post-4037","post","type-post","status-publish","format-standard","hentry","category-economics","category-economy","category-home-buying","category-housing-market","category-market-conditions","category-mortgage-interest-rates","category-mortgage-programs","category-real-estate","category-real-estate-market","category-real-estate-market-trends","category-real-estate-news","category-selling-a-home","tag-buying-a-home","tag-economics","tag-economy","tag-home-buying-process","tag-housing-market-2","tag-housing-market-trends","tag-interest-rate","tag-market-conditions","tag-mortgage","tag-mortgage-interest-rates","tag-real-estate","tag-real-estate-market-2","tag-real-estate-news","tag-selling-a-home"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p1VZLf-137","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/4037","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/comments?post=4037"}],"version-history":[{"count":5,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/4037\/revisions"}],"predecessor-version":[{"id":4338,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/4037\/revisions\/4338"}],"wp:attachment":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/media?parent=4037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/categories?post=4037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/tags?post=4037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}