Mainsail Realty realtor John Baldree puts his longtime personal experience and his interest in following market trends in the real estate industry and in the mortgage lending business to work in keeping abreast of area patterns and trends in purchasing, sales, and financing of real estate. Looking at the present market in the Panhandle area for the next several months, Baldree foresees a deliberate, somewhat hesitant market for purchasers, who have been watching interest rates continue to move higher in tiny increments. “Purchasers are cautious and watchful right now,” says Baldree. “But there will be none of that when rates begin to go back down – and that will happen. It always does. Right now there is a lot of ‘wait and see’ in the real estate realm.”
When interest rates fall, however, is when real estate prices begin to trend upward, according to Baldree. Right now, many prospective purchasers are on the sidelines, but there are also those who take advantage of concessions in price and terms of a potential purchase. There are creative financing options that are attractive to some potential purchasers, but not to others. “Market volatility is real,” Baldree states. “And world conditions surely don’t help. These factors combine to produce a sort of unnatural market stability, resulting in a lot less competition.” Buyers who can afford to make more concessions end up with better deals. Buyers who are willing to explore more creative financing – things like 2 -1 buydowns, for example, can come out ahead in the end.
Overall, Baldree sees a correction coming. “It’s inevitable that rates will come down but it’s impossible to predict exactly when and how fast.” When that does happen, he believes that real estate prices will skyrocket, and that will basically cancel out the decrease in interest rates. Sellers are often willing to give more up, though, in order to get a house sold and closed. Now, while rates are up, and the market is a little slow, is the time when buyers can take advantage of concessions in price and conditions to find a deal that makes economic sense. “Potential purchasers need to do their homework and explore all angles for a deal that makes sense in the long term,” Baldree advises.
