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An Early Look at the 2023 Market

The spring market came early, and we’ve got the Pats to thank.

At Rutledge, we usually say that if the Patriots are in the Super Bowl, the spring market begins after the big game; if not, it starts before. As silly as it sounds, the trend continues to hold!

We've all been wondering what the real estate market will look like this year, and so far, the answer is: busy right out of the gate, though much more familiar.

While the 2023 spring market seems to be off to an exceptionally early start, rising mortgage rates, economic uncertainty, and several other factors are making transactions much more like what we were used to pre-pandemic.

We’re still seeing limited inventory in our area, but the reason pickings are so slim has changed. Now, it’s less about the pandemic and more about interest rates. Homeowners locked into low rates are hesitant to give those rates up. The good news is that while headlines would like us to believe rates are hovering around 7%, we are seeing most borrowers with rates around 5%. There are also a lot of buyers who are choosing an ARM loan for now, intending to refinance once the rates go down, so there are options. In terms of contingencies and the general flow of transactions, we are still seeing some pre-inspections and some buyers forgoing a mortgage contingency, but things have returned to normal for the most part. Of course, incredible homes in great locations still spark some bidding wars! Interestingly, many of the homes on the market are higher-priced new construction, and there is still a desperate need for more traditional single-family homes. With that in mind, if you are thinking about making a move and you prepare your home correctly, you have ample opportunity by listing this spring. I'm happy to help you think through that process and share a market analysis of your home. Book a call today, and let's talk about how I can help.

February’s Top Three: Creative Financing Options in Times of Rising Rates With interest rates rising, many buyers are thinking outside the 30-year fixed-rate mortgage box to lower their initial mortgage payments. Here are a few financing options that you might consider. Of course, always consult a lender or mortgage broker for advice about your financial situation and future plans.

  1. ARMs

Adjustable-rate mortgages (ARMs) are loans with an interest rate that varies based on market conditions. ARMs typically have a lower initial interest rate than a fixed-rate mortgage, so if you plan to refinance in a few years when interest rates ideally go back down, they can help you make the initial purchase possible.

  1. 2-1 Buydowns

A 2-1 buydown is a financing option that can help lower monthly payments in the early years of a home loan. In a 2-1 buydown, the borrower gets a rate 2% lower than the note rate for the first year, 1% lower than the note rate for the second year, and then the full note rate for years 3 through 30 of the loan. While a 2-1 buydown has a high initial cost, it can be paid for by the seller as a concession when trying to make their listed property more attractive to potential buyers.

  1. FHA Loans

Federal Housing Administration (FHA) loans are government-backed and can help first-time homebuyers who qualify make their first home purchase possible. FHA loans generally have lower interest rates than traditional loans and lower credit and down payment requirements. If you are curious about how much equity you have and how you might use it, I’d be happy to help.

Want to make a name for yourself in real estate? Boutique means better.

As a boutique agency, Rutledge Properties offers all agents thoughtful mentorship, high-touch marketing support, access to exclusive listings, and plenty of opportunities to shine. We want every one of our agents to make a name for themselves and to feel confident that we’re on their team, not interested in playing games. If you’re ready to experience the genuinely supportive culture we’ve created and thrive as a part of the Rutledge team, we’d love to speak with you. Contact Rutledge to arrange a visit.

We don't just help you buy or sell a house; we welcome you home!

Rutledge Properties is an independent, women-owned local real estate brokerage. We’ve been helping clients in the Metrowest area buy and sell their homes since 1978. Because we are not part of a big, impersonal chain, we get to do things our way—and our way is all about you. Our clients are our neighbors, and we are committed to putting their needs first every time. We leverage our insider knowledge about the community, industry-leading technology, dynamic strategies, and our worldwide network to provide a level of service that keeps Rutledge clients keep coming back to us, move after move. Contact me today to get a free market analysis or discuss your homebuying goals!

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