Navigating Market Turbulence | 1-Minute Market Update w/ Martin

Unlock the secrets of today's real estate market with insights you can't afford to miss. With the housing market heating up in major U.S. metro areas, discover how recent Federal Reserve interest rate cuts have sparked increased buyer activity, leading to a 2% rise in pending home sales. However, the waters aren't all smooth sailing, as a recent mortgage rate hike adds complexity for those looking to buy. Join us as we dissect these trends, bringing you valuable knowledge to make informed decisions.

Our guest, top Redfin agent Sashana Godwin, sheds light on the unique challenges and opportunities in coastal regions, particularly Florida, where the aftermath of Hurricane Alene and escalating insurance costs are reshaping the market landscape. Sashana emphasizes the importance of seizing opportunities rather than waiting for the perfect moment, offering strategic advice for potential buyers navigating unpredictable market swings. Whether you're eyeing a new property or are fascinated by real estate dynamics, we bring you expert perspectives and timely updates to stay ahead in these fluctuating times.

Transcript

Speaker 0: 0:00

It's a mixed bag. While most of the country is seeing a bump in activity, coastal regions facing climate risk are feeling the squeeze. The market's movement is all about timing and staying ahead of these rate fluctuations. Buyers are watching closely, are you? Just a day after the storm in Florida, it's October 11th 2024, and this is your real estate market update. The housing market is heating up in most major US metros, with pending home sales jumping 2% year-over-year for four weeks ending October 6th. That's the biggest rise we've seen in three years, signaling that buyers are out in full force. Redfin's Home Buyer Demand Index, which tracks tours and buying services, is near its high since May, and mortgage purchase applications are up 8% month over month. New listings are also climbing, continuing a trend we've seen for almost a year now. What's driving this surge? Buyers have been jumping into the market since late September thanks to the Fed's interest rate cuts, even as mortgage rates have been dropping for weeks. The typical housing payment is now $2,526, one of the lowest levels since January and down 5.8% from a year ago. But keep in mind this is compared to last year, when sales slowed due to mortgage rates spiking to 7.5%. However, there's a twist Mortgage rates just jumped again After a strong jobs report. Rates went up from 6.26% last Thursday to 6.62% on Monday and that could slow things down for buyers in the weeks to come. Now this is due to the 10-year treasury. Remember, guys, if you pay attention to the 10-year treasury, the 10-year treasury is what dictates what the rates are going to be for mortgages on any given day. If you look at the 10-year treasury and yesterday, let's just say it was 3.8 and today it's 4%, that means that the mortgage rates today, on that day, is going to be higher. But the opposite also holds true. It was 3.8% yesterday and then today is 3.6%. That means that the mortgage rates dropped that day. Some buyers might hold off, but others are still making molds. Sashana Godwin, a top Redfin agent in Seattle, says her listing received 10 offers over the weekend despite the rate hike. Her advice if you love a home, make an offer. Don't try to time the market, as rates could swing either way. But not everything is rosy, especially in Florida's coastal areas. Pending sales are falling in place, like West Palm Beach negative 17.6%, tampa negative 15.5% and Miami negative 14.8%, partly due to Hurricane Alene and rising insurance and HOA costs linked to climate disasters. Redfin's survey also shows that nearly a third of young adults are rethinking their move after witnessing hurricane damage. So what's the takeaway? It's a mixed bag. While most of the country is seeing bump in activity, coastal regions are facing climate risk, are feeling the squeeze. The market movement is all about timing and staying ahead of these rate fluctuations. Buyers are watching closely and staying ahead of these rate fluctuations. Buyers are watching closely. Are you Now?

Speaker 0: 3:08

As it pertains to Florida, florida is still a great state A little biased because I have property here in Florida. While that hurricane was scary, it is still a great state. The temperature is amazing now here in October. Policies economic policies are great for businesses. Fundamentals are really good. However, I do understand why some people might not want to move to Florida or buy in Florida. Are you interested in starting your financial freedom journey through real estate? Check out wwwmartinreimasterycom and let's get you started now. And this wraps up this week's real estate market update. See you guys next week. Peace out.