Jay's 2024 Outlook
2024’s off to a great start and the relatively mild weather has created a bit of an early spring market. We are already seeing multiple offers for most homes priced right (4-5 offers per home) and think this will increase to 15-30 offers per home in the spring.
We’re also anticipating a move down in rates this spring/summer that started late last fall. So, what does this mean? First, if you are thinking of making a move, doing so sooner than later will likely save you some money. If/when rates come down, we anticipate a rise in values.
If you buy before then, you may be able to refinance into a lower rate. If you wait for rates to come down (like a lot of people are), you’ll most likely pay more for the same home. The silver lining when rates come down and values go up is “move up” buyers selling => more inventory.
The Silver Tsunami
In the US, over 10,000 people per day turn 65. As more baby boomers downsize into one level townhomes, condos and retirement homes, we expect more inventory to come on the market!
One other byproduct of the aging population, we’re seeing a big uptick in the number of reverse mortgage conversations we’re having. Most people have misconceptions about the product because the original terms were not very favorable, and a lot of people had bad outcomes.
The product was revamped by HUD in 2017 which led to a lot of improvements in the product. Specifically, the costs went down and the amount you could borrower also went down. Once we have conversations with how the product works, clients usually ask one final question:
Why wouldn’t I do this?
The most memorable quote from a conversation I had was “we thought a reverse mortgage was just for people who ran out of money. People like us just need permission to even consider something like this because it really does make a lot of sense now that you explained it.”
A study I read said 80% of boomers have 80% of their net worth in home equity, so we expect to be having many more conversations in the years ahead. If you have any questions on how the product works and why we think it’s something to consider, send me an email or give me a call.
“I've failed over and over and over again in my life. And that is why I succeed."
Chase’s 3rd grade basketball team had a rough start this season. Turnovers, traveling violations, losing games we should have won, etc… After every game we have a debrief about what we learned and what we can do better. They show up for practice and work on those things.
In month 3 of the season, I’m happy to report we’re on a win streak and back above .500. The lesson: Never give up and get better every day! If you or anyone you know is looking to “get better” financially, we’re here to help! Just pick up the phone and give us a call!