So, here's the thing my friends...
The government has been buying down interest rates for about the past 10 years. In a 'healthy' economy interest rates are about 6%-8%. When the market crashed, the government started buying down rates to encourage it to come back. Surprisingly about 2/3 of jobs actually depend on the housing market. This is why so many folks lost their jobs when the market crashed.
In 2016, home values went up about 30%. This is an unsustainable increase in home values. (Yes, I know I went over this before, LOL). Those of us 'in the industry' see what is going on, & often coming, much sooner than the government does...and even then they will wait to do anything. By 2018, home prices were still steadily increasing, and the government was still buying down rates to unprecedented numbers. Those of us (Realtors & Lenders) who have been around the block a time, or two, started talking about how interest rates would start going up soon to balance up the market otherwise we would be flirting with inflation. We looked a lot like Chicken Little when the government kept buying down rates.... because they were making a crap ton of money off of it. When 2020 hit, we all thought, "ok, this will balance out the market. It will be a slower year, but that is ok.... the market will balance out." This worked for about 3-4 weeks, and then it is like the market drank a Red Bull mixed with some Mt Dew, and took off like a single mom with a shot at Jason Momoa. Interest rates (bought down by the government) were still insanely Amber Hurd low, and comps didn't matter as people were making offers way above market list price AND bringing in $$$$ to cover a low appraisal difference. Just so everyone knows... prior to 2020, covering a low appraisal gap with extra money was unheard of! This was very concerning as we were no longer flirting with inflation, we were doing a striptease for it. Still the government continued to buy down interest rates.... short term gains with long term consequences. Fast forward to 2022, and the housing market needs a correction.
If interest rates had gradually (.25 to .5 point) gone up over the past few years, we might still be where we are at, but prices would be lower, and it could have been absorbed. Unfortunately for all of us, that is not what happened. Finally the government has stopped buying down the interest rates, but honestly, it is a little too late. We got in bed with inflation and had its baby... even when we knew it was bad for us. Home prices are not going to tank, but they are leveling off. Many homes are making it through the weekend without a dozen offers, and crazy terms. Homes are going pending for *GASP* listing price! This is all a good thing, but man it is going to hurt to balance it all out.
Remember... I have said it before... the economy is like a bathtub. You want to get in and have enough water cover your good bits, but not so much that it floods over the rim when you get in. Well, we are flooding the whole room, down the hall, and mom is screaming at us. Water needs to be let out, and clean up needs to be done. Crappy thing (as all moms know) it is never the kid who caused the mess who cleans it up... it is the rest of us.
Rates have gone up for home loans, car loans, and yes, even our credit cards.
Home prices have gone up so much in the past year that people are going to see that reflected in higher property taxes. This is going to increase their mortgage payments as property tax increases are reflected in escrow holds from their monthly payment. Home insurance costs will also rise as it costs more to insure what you currently own.
This is a breakdown of what it means when the Feds/government start selling those back. If your eyes aren't glazed over by now... sorry for the lengthy novel... this is where my neuro-spicy (Love it!) tendencies lead me... over-explanation!

You can also holler at me with any questions......
Here is a link with the Mortgage backed securities ...  Copy & paste 
https://www.axios.com/2022/05/18/fed-mortgage-portfolio?fbclid=IwAR1YNvzo8UzF6Ex9D10T1wT7t9dVrYuT8x5cN2Cv18Y0EKqpwmsVTKc9aCs

​Next home buyer & home seller classes (in person & online) are available at:
www.learningtobuyahome.com
www.freesellerclasses.com

Don't want to go to the website?  (Hey!  it has other awesome blogs & videos on there too!), you can always email me at traciedemars@aol.com and I will email you the schedule.  


Happy May, and May the 4th be with you....
  
Do you remember that phrase, 'Big Brother is Always Watching'?  Well, no where is this more true than in real estate.  We live in the age of Alexa.  Our homes are wired with xfinity, and Ring cameras....and Alexa, and that chick is always listening.  
It 'used' to be that when I would show a home to a buyer client, we would talk about the home and the pros/cons while walking around.  We would even *gasp* sit down at a kitchen table to write up an offer.  Of course... that was 'then'.   
When I am showing homes now, in 2022, I always remind my buyer clients to wait to talk about the pros/cons of a home, or about their financial situation, or about any offer they might want to make until after we are out of the house... in fact, until we are far away from the front door even.  Why?  You guessed it...  in our day, and age, there is a very good chance that someone is watching, or listening to you.  

When I am talking with a seller client about listing their home, I like to take a little extra time on page 4, section 18 of the listing contract.  In this particular case, line (d) Seller acknowledges that is a violation of RCW 9.73.030 to intercept or record conversations of persons in the property without first obtaining their consent.  
What does this mean?  Seems pretty clear, right?  ...and wrong...  
The seller can not record conversations, or people, in their home....got it!  But what about intercepting?  This is where it gets a little more complicated.  

Recently, I had an amazing listing that I knew was going to be very desirable, and it was.  My client has cameras all around, and in his home.  On the listing, I stated that, 'cameras are on'.  This is/was notice to the buyers Realtors, and to their buyers that there are cameras in/around the home, and that they are active.  By entering the home, with that knowledge, consent is given.  Quite a few of my listings have cameras, or Rings, or xifinity, or whatever, and for these ones I always put in the agent remarks that "cameras are on".   

      My friends, a few things that you need to know is that from the moment that your Realtor opens the door for a showing, WE are responsible for you.  We are responsible for anything, & everything that happens during the showing.  This isn't HGTV, and Washington has strict laws about this.  As a group, we stay together during the showing, and yes, your Realtor leads the showing.  No Realtor should sit down at a kitchen table while the buyers roam a home unaccompanied.

   When a Realtor accesses the lockbox for the key to enter the home, a message (either text, or email, or both) is sent to the sellers Realtor letting them know that so&so from xoxo realty accessed the listing at this time.  When the showing is done, and the key is put back, another message is sent to the sellers Realtor letting them know that so&so has concluded their showing.  Then the next Realtor would access the lockbox, and the messages repeat.  I know it takes a moment, but your Realtor needs a sec to put the key back in the lockbox for the next Realtor to access.  The lockbox is there to safeguard the key to someone's home.  The lockbox is also there to safeguard entry to the home to licensed Realtors. 
 

In all of these cases, the seller knows & hears what you are saying about the home.  They hear about the offer you want to make. They hear about your personal information, or financial situation. There are a lot of other things that they hear, or see, but that is a different email!  

Our world is crazy, and many more people all the time are connecting their home, and outside areas to cameras.  Just assume that you are being watched & listened to. 

As a buyer, you need to BE AWARE! 
 
*You need to ask your Realtor if there were any special remarks or comments in the listing.  Sometimes there is information in there that you might want to know.   
*Pick up a flyer if there is one there.  Sometimes there is information on the flyer that is helpful to you, as the buyer.  For example, on one flyer I had information on work that my seller client had done to the home, and when it was done.  On that particular home I had no less than 4 Realtors ask me about the roof....that information was on the flyer ... in the flyer box, and on the counter.  


*Stay with your Realtor!  Please, I know it is difficult because often you are on a timeline for showings, but stay with him/her while they show you the home.  That Realtor is responsible for you during your time in the sellers home.  I know I talked about it above, but it bears repeating. 


*If the seller is asking for your shoes to be off during the showings, please take them off, or wear the booties that are often provided.  One of the things I always tell my buyer clients is to where easy on/off shoes for showings.  I know those boots are super cute, but they are a pain to get on & off.


*Appointments...  Appointments are often required for showings....yes, even for vacant homes.  Many times it is 24 hour notice appointments.  We know you are excited to see homes, but there is nothing worse than showing up to see a home and having 3-6 Realtors there with their clients to see the same home and they are all just waiting in a cluster.  This is why we set appointments, so that everyone has a designated time to see the home.  Of course, this means that your Realtor has to keep you on task as to time.  This can be difficult because when you see a home you really like, you want to spend more time in the home.  When you don't really like the home, you are in/out lightening flash.  It's often like herding cats really.  I usually schedule 30 minutes for showings because 15 minutes is crazy, and we need to calculate drive time between the showings.  When a Realtor, and their clients, go over their time into someone else's, it throws everyone's schedules off. 

*Ask questions.  Sometimes it is something that your Realtor knows, and sometimes it is something that needs to be asked of the sellers through their Realtor, and this is ok!  Most Realtors try to cover all the possible questions that could come up, but maybe it isn't something we thought about.  It is ok to ask questions!

*It is ok to open cupboards, or pantry doors.  It is ok to look at storage.  It is ok to look at the stove/oven, or the dishwasher, or built in microwave.  It is never ok to open someone's private dressers, or armoires.  Rule of thumb...if it doesn't stay with the home, don't open it.  

*If you feel the need to talk about the home, only say positive things.  It goes without saying, but please do NOT comment negatively on the price of the home, the decorating, the personal effects in the home, the colors, the pictures, or the opinions (whatever they may be) that are reflected in the home by the current homeowners. 
*Again...Never talk about your financial situation, or personal situation, or offer strategy, in someone's home where they may be listening, and they very well could be.  

*And if you are having an affair with your Realtor...  just...DON'T.....
As always, "may the odds ever be in your favor"  I am here for any questions, and always available to help you with your next Home Adventure... Whether you are buying, or selling...  I got you Boo!  




Have a great day, and I will talk to you soon,
;-D
Tracie DeMars
Real Estate broker 
Re/Max - Van Mall
360/ 903-3504 cell
360/ 882-3600 fax
www.traciedemars.com
traciedemars@aol.com
 
“Interested in free and non promotional home education classes?  Go to www.learningtobuyahome.com or www.freesellerclasses.com for local upcoming home BUYER and home SELLER classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.”

"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be." 
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).