Preferred Properties of Texas

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What You Need To Know For A Real Estate Recession

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You’re probably aware that the economy is in poor shape. The inflation rate is at its highest level in 40 years, the interest rates have doubled from early this year, while real estate prices are literally on the rise.

The United States’ economy naturally expands and contracts. Expandions are usually a sign that the economy is in good health and last for several years. A recession is a period when the economy contracts by more than two quarters consecutively. This means that we must slow down, hopefully only a little. That is a recession. It usually lasts less then a year.

Because it was fun, we printed and spent way too much money. Inflation kicked in and the Federal Reserve is trying slow down things a bit.

We don’t know whether we are currently in recession, but the housing market is experiencing a reset right now.

  • Interest rates have risen
  • Monthly mortgage payments up
  • Less buyers and renters are eligible, so housing prices will fall. However, there is still a shortage of homes to rent or for sale.

Consumers should recognize that interest rates will remain in the 6%-8% range for at least the next few years. This is a more common range. To stimulate the economy, the super low rates that we witnessed during COVID-19 were sub-sidised.

Second, determine the length of your occupancy. If you plan to move within four years, rent now and buy now if your plans are to remain there for at least four.

Buyers should marry the house but not date the rate. Refinance as soon as rates fall below current levels. We will soon see another round of stimulus and the Fed will lower rates. Your home will be worth much more in the future than it is now. Take a look at ARMs. Make sure your pre-approval letter matches your offer.

Sellers, adjust your expectations to the current market conditions. There are no longer any 10 over-priced offers for the first weekend. Buyers who are still interested in buying a home are extremely price-sensitive. Consider pricing your home realistically. You might consider upfront payment for an appraisal. A prepaid 2-1 rate buydown can help you attract buyers.

The bottom line is that the US housing market is starting to cool down. It has been so hot for so long that most sellers aren’t ready to accept less than their full value in most markets. We aren’t seeing realistic asking prices discounted and don’t expect to soon.

It is still a buyers market and there is a severe shortage of homes for sale.

There are no reasons for home prices to fall or interest rates to drop in the next six to twelve months. We  don’t believe we will see another housing crash as in 2008. Forget about foreclosures anytime this year.

Original Blog: https://www.fox5atlanta.com/news/what-buyers-and-sellers-need-to-know-for-a-real-estate-recession

Buyers Feel Pinch of Rising Interest Rates

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Although homeownership is the largest investment and source of wealth for most households in the United States, there are many factors that make it more difficult to achieve homeownership, particularly for first-time buyers. Rising mortgage interest rates are the latest factor. The average rate for a 30-year fixed mortgage rose 2 percentage points from 3.22 percent in the first half to 5.7 percent in the second half of 2022.

Potential buyers face many consequences from rising interest rates. They reduce buyers’ purchasing power. The mortgage payment increases with rising mortgage rates, which in turn leads to a decrease in buyers’ purchasing power. This means that it is more difficult for them to get a mortgage loan. The mortgage rate rises means that the income required to be eligible for a mortgage loan for the same home is higher. This effectively pushes out more buyers from the housing market. With a 3 percent rate of interest, 34.8 percent Texas renters could afford the first-quartile price for a home in 2Q2022. With a 6. percent interest rate, this percentage drops to 24.7 per cent.

A higher interest rate equals a higher mortgage payment. This increases the buyer’s debt to income (DTI). This makes buyers more risky to lenders and could reduce the chances of getting a mortgage loan. A higher DTI ratio can make it more difficult to repay mortgages, especially for those who have lost their job.

Higher interest rates mean higher mortgage payments. This reduces the return on homeownership and prolongs the time it takes to break even.

 

To read more click on original article: https://www.recenter.tamu.edu/articles/tierra-grande/Home-Stretch-2362

There Are Many Ways To Move.

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You don’t have to rent a truck or hire movers when you move. You have other options for moving your belongings.

A moving truck may not be necessary for you. You might be able share a truck with another customer of a moving company if you don’t move a lot of items. This option is available for interstate moves.

FedEx states that freight is any shipment exceeding 150 pounds. You can send bulk items by air, sea, land or any combination thereof. It may be economical depending on your move.

A company can drop off a portable storage container at your home. You fill it up with your belongings. It is picked up by the company and shipped to your new residence. Ask if portable storage containers can be placed on the street or property of your future and current homes.

Not all your possessions are treasures. Consider whether it is worth the effort and cost to move an item. If the item isn’t worth it, you can sell, trade, or dispose of it and then buy another one once you get to your destination. It’s easier and cheaper to move with less.

 

Original Blog: https://www.texasrealestate.com/members/posts/theres-more-than-one-way-to-move/

Things to Look for in Homestead Land

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Buying land to build a homestead can help you achieve your goal of self-sufficiency.

Homesteading, also called hobby farming, is not a new concept. It is seeing a revival due to growing interest in self-reliant rural lifestyles. While you can grow a productive edible gardening garden on most properties, even in the suburbs, a true homestead requires substantial acreage. You should also do extensive research to ensure the land is suitable for your needs.

It can be very rewarding to start your own homestead. It is important to plan carefully, especially for the land you purchase.

There are a few factors that will determine how much land you need to build a homestead. You can read more in the next section. However, the most important factor to consider when searching for land is available acreage. This should be realistic to meet your hobby farming goals.

Access to water is not a requirement for your land. However, if it’s located in rural areas, it may not. It does have to have access to at least one reliable source for potable water, such a well. Although it is not necessary to have an additional source of water for fishing or swimming, it is an added bonus.

If you buy land with already-built structures, you may be able to get access to the road. If you are buying land that is not in use, you will need to consider your access options. This includes road frontage options as well as cost and maintenance.

It is important to know what kind of soil your have. You may need to get soil testing done before you invest. This will ensure that you have the right type of soil for your project.

Pay attention to the CCRs (Covenants Conditions and Restrictions) and zoning regulations for the property that you are interested in. You may be limited in certain areas even in rural areas. It is important to understand these limitations before you make any decisions.

Your family size and the amount of food you plan to grow will determine the ideal size for your homestead. A small family may only need two acres if it is well managed. Larger families and larger homesteads will require more. A good rule of thumb is to have one acre per person. This includes enough space for animals, trees and any other items you want to keep on your property.

If your looking to buy land contact our office and speak to one of knowledgeable agents.

Preferred Properties of Texas is here for all your Real Estate needs!

Original Blog: https://www.landhub.com/land-news/how-to-pick-good-land-for-a-homestead/

Happy Labor Day!

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Buying or Selling a home in Stephenville, Erath County or surrounding area, give Preferred Properties of Texas a call! 

Let us take the LABOR out of selling or buying your next home!

Scents That Could Sell Your Home Faster

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It is important to stage your home inside if you want to sell your house quickly. In an increasingly competitive market, the first impression a potential buyer has when they walk through your door is crucial.

The curb appeal will determine whether someone steps over the threshold. But, could it be that the first thing they see as they enter is undoing all the hard work they have put in?

While we don’t doubt that you love scented candles it is worth looking into which scents might make your home more appealing if you’re trying to sell. It’s a good place to put those popular and impactful scents in the entryway of your property.

Fresh laundry is a wonderful smell. Freshly washed linen is second in the list of scents that can help you sell your house. 36% of participants said it would win their hearts.

According to the survey, 27% of respondents rated this scent as a winner. You can also leave a French Press or a timer on your best espresso maker so that people feel at home.

There are certain scents or smells that you don’t want to have lingering in your home during house viewings.

It’s not surprising that 68% said moldy or damp smells would make them turn down a property. It is in your best interests to remove mold as soon as possible, regardless of whether you are selling.

Close behind were 64% of survey participants who said the smells of vomit and cannabis would turn them off. 55% of potential buyers also stated that this smell would cause them to reconsider putting in an offer.

Short suggests that you use a steamer or pet vacuum to remove any smells from your pets. Grapefruit, orange, and lemon scents are excellent at neutralizing the musky animal smells of pets. Citrus-scented candles are very popular and can add a pleasant, fresh-smelling fragrance to your home, no matter where they’re placed.

Rose, jasmine, and lavender are all good options for selling a home.

If you choose to light candles before house viewings, it is important to keep them out of reach of anything flammable, such as furniture, curtains, bedding, or decorations. To prevent an accidental fire from starting in your house, this is important. Also, don’t place lighted candles in areas where they could be damaged by animals, children, wind, or wind. Avoid lighting scented candles in rooms without windows or poor ventilation. This can make the room stuffy and overpowering.

Although the light of a candle can be enchanting, reed diffusers are safer and less fragrant than essential oil diffusers.

It’s an easy task to keep your home clean when you invite potential buyers in.

 

Original Blog: https://www.realhomes.com/news/best-scents-to-sell-your-home-fast?utm_source=SmartBrief&utm_medium=email&utm_campaign=3BFA9068-DFBC-477B-BC94-C168B9A999F1&utm_content=9361F4BF-0919-4461-86E4-074E169E8CA3&utm_term=23ef8e9a-359a-444f-9fb8-e57c0efe2aba

Preferred Properties of Texas

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