Opportunities in the Desert – Words from Dean Rathbun, United American Mortgage Corporation
The labor market report last week added far less jobs than expected. Only 187,000 new jobs were added last month and only one sector carried half of that entire number: Health care and social assistance. All other sectors were quite low.
These weaker numbers kept our mortgage rates flat after a brutal increase to the 10-year yield over the last 5 days. The 10-year has now solidly eclipsed the 4% mark, which is a mental barrier for bond traders. Net week-over-week change is only about an .125% to rates.
There are Opportunities in the Desert
I am constantly hearing that there is “no inventory” available for sale. Dean and his colleagues spent a good deal of time looking at properties online and the days on the market.
“I was surprised at the increase in the amount of time properties are staying on the market before they go into contract. It has increased significantly. That is the first sign of a market balancing in which buyers are starting to push back. Remember, a listing price is the price the seller wants for the property, not necessarily the actual value or price of the property. House offers are a negotiation. With higher rates, there are less buyers in the pool. It’s that simple. Sellers must consider all offers these days and not just ignore the low ones. They may not like the offer, but it may be the correct ultimate price. Be bold and aggressive, especially in this market.”
This is definitely a challenging real estate market. Dean’s quote this week is from his friend Al Hensling, who in 2009 in the middle of the mortgage meltdown said, “Market volume is down? I choose not to participate”. You make your market. You choose your destiny, your volume, and your success. There are deals being closed. Will you choose to participate in the great opportunities that are out there?
My take on what Dean wrote and the market:
“Season is just around the corner now is a great time to find or sell your home in the Desert. Less competition for buyers and great opportunities for sellers. Let’s have coffee and discuss your options. If you want to find out more how to finance your home purchase in Coachella Valley, let me introduce you to Dean. He’s a wealth of information and will help you find what’s best for your situation.