Brian and David discuss the roar of this week’s bear market and its effect on mortgage rates, Brian’s son-in-law’s adventures in home buying, and what to do when you have too much grass to mow.
This week’s highlights:
- Mortgage rates are changing during these weird economic times, but remain low, so seize the day!
- Unsurprisingly, supply and demand in the Wisconsin home market is drastically different than it was this time last year.
- Brian and David tell you how to get some green out of your acres.
Mortgage rates are no longer historically low?
With all of the uncertainty from the coronavirus pandemic, mortgage rates are no longer at record lows. Brian warns that if you had an accepted offer this week, mortgage lenders cannot lock in the sweet 3.25% from earlier in the month. David says to lock down the current rate (not as low, but still low) while you can!
Don’t play blackjack with your interest rate. In this wonky bear market, Accunet can offer a rate of 3.75% on 30-year-fixed mortgage, with 25% equity, an APR of 3.8%, and $1,900 in costs.
Accunet is here to answer any homebuying questions you may have, and can give you a custom rate quote!
March 2020: Housing market supply and demand
Brian’s son-in-law Tim and his wife Grace have been on an adventure in Wauwatosa over the last few weeks as they try to sell their current home and buy a new one.
But Brian wanted to know, in these rocky economic times, what is the state of the home market in Wauwatosa?
- Only 19 homes sold and closed in February 2020, whereas this time last year saw 104 houses change hands.
- The entirety of March 2019 saw 90 new listings, but this March only 21 were listed.
- Looking ahead to April, last spring saw 70 new listings in Tosa, whereas April 2020 is projected to have 110 for sale.
- Currently, there are 34 single-family homes that do not have offers; a number that David dubbed “slim pickings”.
These fluctuations have been typical of homes in the Milwaukee suburbs the last few months, along with Oak Creek, Whitefish Bay, Brookfield.
Buying or selling your home? Accunet’s Quick Start form can help you decide your next steps!
What to do with excess acreage
Brian told the story of a client who recently wanted to acquire two parcels of land that were up for sale as separate lots. The client wanted to purchase them separately, and eventually, sell them separately, but build a home that encompassed both parcels.
Brian interjected to warn the client that he could not sell the land separately if he built over both.
When land is put together to make the next-door lot buildable, it ends up being worth much less in the long run. All the client would gain is “excess acreage,” as David put it…essentially just more grass to mow.
The best-case scenario is to maintain each as its own lot, break the transaction into two pieces.
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