Happy new year! Now is a great time to ponder and think about what is coming next, whether it be about your finances, where you want to live, or what you want to be doing this year and in the future!
Looking externally, we hear a lot of discussion on how outside economic and political forces might change the real estate market. Overall, Utah tends to remain rather stable, with less economic swings than other states due to our strong economic base, businesses moving in, HAFB, and small business owners that continue to show amazing entrepreneurial spirit.
Looking to increase cash flow in your household? Recently, I have done a lot of Broker Price Opinions for the banks to help people remove mortgage insurance from their bill. The banks ask to include a valuation for any upgrades you have done, so start making a list of upgrades to have on hand when the lender sends someone out to value your home.
To those of you who have waited to refinance, there is still time, but don’t wait too long, as it is predicted that the rates are going to start changing soon. A recent article on mortgage rates in the upcoming year, from Inman News, states:
“economists agreed unanimously that, following several years of dormancy, 30-year fixed rate mortgages could finally rise from the current average rate of 3.9 percent- but they were divided on just how much it would increase, with most predicting they would stay well below 5 percent.”
By keeping the rates below 6%, the market will still remain strong for sellers, since after 6% ”…potential buyers typically exit the market.” Of course, there will always be buyers even if the rates were to rise (my mom bought a townhome in 1979 at 21%!!), but they become less inclined to buy when rates are less favorable.
If you need a lender to talk to, email and we can send a list of lenders in the area!
If you are considering a sale this year, note that as rates rise, the market will also begin to balance with a small correction from the full seller market we have just seen. This means that most likely there will be more negotiations with buyers and less “put it on the market and sell it in 4 hours with multiple offers” situations.
If you are planning to remove mortgage insurance, or sell, what better time than now to start planning spring painting, looking at new flooring or carpet to install, or adding that new countertop or updated bathroom you have always wanted to put in!
If you are looking for a quick valuation of your home, go to utah-home-value.com and type in your address! Quick and easy, to give you an idea of what to do next!
Have a very prosperous and Happy New Year!