So, I am sitting at Elevator Brewery and Draught in Columbus, Ohio enjoying their amazing craft beer and short rib macaroni and cheese. I am not just savoring the food, I am also reflecting on the thrilling Cavalier’s victory and advancement to the NBA Championship. Lucky me, I watched game 7 of the eastern finals with a roomful of Cavalier fans right here in Ohio! Also, I had the BEST or second BEST meatball I have ever had. It was veal but it was real…delicious by Marcella’s Restaurant. Yup, I can rhyme.
I have to tell you, Columbus is kind of boring and they dress funny. On Memorial Day I walked the city streets and (no exaggeration) saw a total of 7 people over the course of an hour. It really shuts down out here and yes 5 of 7 were dressed funny, that’s like a 71.4% funny dress ratio. I am not picking on Columbus, just calling it as I see it. They probably think I dress funny too.
As I fly back tonight, I will research our current and future real estate markets. I anticipate many more houses hitting the market in June and prices evening out. Buyers will get pickier before making offers and negotiate more aggressively. Great homes at proper market pricing will sell fast. While that sounds obvious, this is the time of year where sellers start pricing too high and ignore the winds of market change.
After reviewing recent economic data, I strongly believe the Fed will raise interest rates again in June. I would be bold and guarantee it based on the ultra-low unemployment, but the new trade sanctions being put forth by Trump may introduce economic doubt. If they do raise federal interest rates, I do not see it impacting mortgage rates significantly this time around. Right now rates are kissing 4.75% or more, especially if the buyer’s closing costs or mortgage insurance fees are included in the rate.
In wrapping up, I have been getting calls from clients wondering if we are hitting a peak in the market. I don’t believe so at this time. I see a calming down of double digit appreciation to more traditional rate of appreciation. However, if you are waiting to time the market, no one gets it perfect except by accident. If I had a rental that I didn’t want long term, I would give this market a hard look and likely sell it.
Thanks to all my wonderful clients and for your referrals. I am going to miss some great clients, all of whom had me sell their homes but moved out of the area, state or country. Joe and Marie, Dylan and Courtney, Dale, Margie and Randy, Keith and Rosalinda – you will all be missed. Thank you for your business and trust. If you ever need anything for family, neighbors, or even for your next move – give me a call!
Stefan West, aka Mr. Murrieta