If one thing defines the real estate market in 2019 I would say “buyer frenzy” driven by consistently dropping interest rates. Feds dropped their yield by nearly 36% in 2010. Now, this
Real Estate Trend In El Paso Tx October 2018
Everyone one has noticed housing prices going up. This is the simple effect of supply and demand. When there were 2 shoppers competing for a house last year, now there are 4, giving sellers the ability to move well priced homes quickly while asking for more in return. But it's a little more complex than that. Now that more banks are borrowing money, more mortgages, that means the competition for loans has also risen. This gives the Fed the ability, because of supply and demand, to charge a higher percentage on loans. this trickles down to the consumer who ultimately pays the price with rising interest rates. You may the think 10,000 dollars over the term of a 30 year mortgage is not a lot, but when you multiply it by the hundreds of thousands of homes a year, that turns into an exponential number real quick. Cut to the point, the more expensive something gets, the harder it is to buy. Home sales will start to slow down, as will prices and the cycle will start once again.
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I've worked with many buyers and one of the most common questions I get, is what's the difference between a new build and a resale. While some of the differences may be obvious, some are not, and of