Why Buy A Home This Fall - RealTalk Episode 29
Speaker 1: 00:00 It's time for real talk with Brian and Dan, the weekly talk radio show dedicated to discussing important real estate topics plus insight into the local community with a combined experience of over 50 years as local real estate brokers from the East side real estate team at Keller Williams Realty, Bellevue. Here's your host, Brian Lovett and Dan Edwards.
Dan Edwards: 00:25 Well, good afternoon. Welcome to real talk with Brian and Dan on 1150 K. K. N. W. it is Wednesday, October 30th, right 30th all day, all day. We're glad you joined us today. Just so you know, we're live streaming. Thanks for joining us online. If you're watching us online, we appreciate it and feel free to go to YouTube and look up 1150 K. K. N. W if you'd like to listen to this and past episodes, you can find those episodes on any place that podcasts are positive podcast. Did I got to figure out the term podcast aerated podcast are rated podcasting anywhere. They're podcasted. I'm also to a, you can find them on our website at the East side. Real estate team.com. We've got a great show for you today. I'm excited to have two fantastic guests in studio with us. We're going to have Mike Nakamura of Mike Nakamura photography and Wilma Peck representative for Michael's auto repair.
Dan Edwards: 01:20 But of course before we get started, as always, it's time for some real talk. This week we'll be going over several reasons. It's a great idea to buy a home this fall instead of waiting out the winter months. The first and most important reason to buy a home is that prices are continuing to rise. Corelogic's latest home price insight report shows that home prices have appreciated 3.6% over the last 12 months. The same report predicts prices will continue to increase at a rate of 5.8% over the next year. This means that the bottom in home prices has come and gone on. Values will continue to appreciate for years when he no longer. Makes sense. One of the things that we often see Dan, is buyers that say, Oh, I'm just waiting to save her bigger down payment. I've never seen anybody that can save faster than home prices were appreciate.
Dan Edwards: 02:09 That's right. Especially in this area. Right, with the prices. That's right. You got another reason. Another reason is a mortgage rates. So they're, they're projected to increase. We've seen them bouncing between three and a half to 4%. And that's really great news because the lower the interest rates, the more your purchasing power. So even while home prices are rising, if you, if you make that step towards home ownership, you're locking in a rate for 30 years. It's pretty great way. Like anybody that signs a new lease in the next month, a year from now, that lease will come up and guess what? It will change. It's going to go, your monthly payment will change. So by locking in a mortgage rate now for 30 years, it won't change unless you refinance. Right. Then you have to go with market rate. Insurance can go up modestly, but there typically is a good point.
Brian Leavitt: 02:55 Modest increases. Yeah. Yeah. So yeah, go ahead. No, the reason, let's face it, either way, you're paying a mortgage, you're not paying yours. You're paying somebody else's. Even if you rent your banking, that landlords a mortgage payment, there's some writers who haven't purchased a home yet because they're uncomfortable making taking on the obligation of a mortgage. Everyone should realize that unless you're living rent free, say with your parents, you're paying a mortgage either that or yours or the law, either yours or the landlords as an owner, your mortgage payment is a form of forced savings. The four sieving allows you to have equity in your home. You can tap into later in life as a renter. You guarantee your landlord is the person with that equity. Are you ready to put your housing costs to work for you? But I'm no work.
Dan Edwards: 03:38 Now. The last one I think is pretty funny. It's time. It's time to move on. It's time to do some adulting and finally buy that house. No, it's a little bit of tough love. So the cost of a home is determined by two major components. The price of the home and the current market mortgage rate, both are on the rise. So a lot of people have been waiting for something to happen in order to make that change. And Brian, you probably take phone calls. I take phone calls, we talked to our buyers out there who are waiting for something to happen. And I, I dunno if you're a fan of dr Seuss. Oh yeah. But one of my favorite books, dr Seuss. Oh, the places you'll go and in that, Oh, the places you'll go, there's that, the waiting place. And I mean, home homeownership may or may not be right for you depending on the time, but if you're hearing this message and you're like, ah, I know, then you know, this is your, the voice saying you're in that wedding place.
Brian Leavitt: 04:29 Right. Why not make that move? Why not take advantage of a really good time of year in the Northwest and see my take is if you're not ready to put down roots, be a renter. Yeah. Once you make that decision to put down roots, ownership flat-out wins every time. In fact, so often we're putting people into homes that their mortgages less than the rent, you know, they would pay for the equivalent a housing option. Yeah. And to circle back to the increase of prices, right. A lot of people are waiting for prices to decrease again. Right. Good luck. Well, it's a mistake because the only time they've really actually depreciated was during that great recession in the Northwest. Right. And as we talked to Pat stone few weeks ago talking about the growth into the area, there's a level of confidence that, that the area growth will be great.
Dan Edwards: 05:14 And I read in the wall street journal today kind of talking about the economy and how kind of in the third quarter, it wasn't great. It was kind of a sluggish economy. And what were the factors there? And one of the major factors was a reinvestment by corporations right into the businesses. Because of the tax breaks the year before there was a lot of reinvestment. Well because of the global uncertainty in trade, less investment. But one thing that was on there though, it was really interesting is the amount of investment into new homes, new construction since 2007, they showed a little chart, a little graph, and it showed from 2000 before the chart showed like this giant graph in 2007 after tiny bit. So it kinda goes back to what Pat was saying, right? Not enough new construction being built. And when you don't have new inventory but you have people moving the area, you're running out of inventory, it's going to keep prices going.
Brian Leavitt: 06:03 Yeah. Right. And you know, it's interesting to me too is, and we've talked about this before on this show, when I talked to a people that are considering buying the number one reason they don't is down payment, down payment. We have down payment assistance available in terms of grants, loans. I mean, there's all sorts of options. And the things I hear is, you know, Oh, it's too good to be true. You know, the idea that if it's too good to be true, it's not true. Well guess what? There are options out there that are really fabulous. I mean it's, it's incentives for people to be in home ownership. So there's a lot of ways to be creative with down payment, but also it's so frequently less than people expect it to be. So. So Dan, what's your takeaway? So my takeaway is this, when the time is right for you, you know it.
Speaker 2: 06:49 And if you've been thinking I really like to do something, the fall is a great season of the year to have less competition, right? Reach out to a broker, reach out to the two Brian or myself. We'll be happy to walk you through the process and if down payment assistance on the board, we've got great vendors that can help you with that. That's right. All right. Well, listen that concludes our real talk for today and if you're interested in this, in any other topics we covered in our real talk segment, please check out our [email protected] slash blog if you'd like to talk to us directly for your real estate questions, feel free to contact us at (425) 200-4093 thanks for listening up. Next we'll be speaking with our lender for our mortgage moment's segment. Stay tuned after this commercial break, we'll hear more about the market from Michael Burdick alone, consultant with loan Depot.
Speaker 3: 07:44 [Inaudible].