After seeing these two articles:
and hearing that a buyer just blew out of an offer negotiation due to the seller wanting to replace the washer and dryer with an older set, it’s time for a chat.
The lower mortgage rates are starting to clog the system with refinancings, and closings are being delayed. Additional volume probably just exposes the weaknesses in each lender’s pipeline, and there isn’t much that they can do to improve it on the fly.
Threats of delays will add to other second-half difficulties:
- Can we agree that the more-motivated buyers have already bought a home this year? Those deals go down easier. In the second half – which last year was just as fruitful as the first half – prices are higher than ever. Combine with less-motivated buyers, and it’s tougher to bring deals together.
- The buyers’ squeeze for better quality has exhausted the supply. What’s left are more of the inferior houses for sale – and tougher deals.
- Those in the business who enjoyed a frenzy-like selling season should consider changing gears. Expect fewer bidding wars, and…gasp…lower offers.
- The political circus is a distraction, and a likely reason for buyers to give up and quit looking.
If we can work together to find ways to make, and keep, sales together, the better for all. Mortgage rates in the low-3s should help!