September 4, 2024 • 12 mins
LET'S TALK ABOUT THE REAL ESTATE MARKET FOR A HOT MINUTE With my friend Ed Prather. If you need to buy or sell a home you need Ed and his team and you can find him here.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
What is happening in the real estate market. I decided
to check with my realtor, Ed Fraether, because he knows
what's going on. Good afternoon, I must say, good morning.
Speaker 2 (00:09):
Ed, Hi, ed Bie many thank you for having me.
Speaker 1 (00:13):
Well, thanks for coming on, because you and I had
a chat yesterday and the market is I'm just going
to use the word weird right now. Is that a
fair assessment, because things are sort of like everybody's stuck
on ready set, ready set, ready set, waiting for rates
to drop. So right now, let's talk about the state
(00:35):
of the real estate market as it is. There's some
good news in terms of availability.
Speaker 3 (00:41):
Well, I think you're right on. You know, we've used
the word weird, strange, you know, somewhat volatile, and that's
because you know, we've been talking about looking at hoping
for the FED to make cuts. We see that happening
sooner than later, but the cuts aren't here yet, and
so just like you said, we're sort of we're all
waiting for the is And of course we have sort
of these golden handcuffs. As far as you know, a
(01:03):
lot of sellers, even with the need to sell, have
a hard time letting that three percent mortgage go you know,
the FED men. At the end of July. We've seen
a lot of activity though, So you know what I
mean by that is is more mortgage applications. You know,
as we foresee and expect, a soft landing is going
to be the reality or hopefully is reality, as well
(01:25):
as showings and even offers. But I'll tell you it
is really specific to property in micro market, meaning kind
of the neighborhood. You know, is you got to be
real careful because.
Speaker 2 (01:36):
If you're not positioned well, if you're not priced.
Speaker 3 (01:38):
Well, the home could easily sit.
Speaker 1 (01:40):
And let's talk about pricing as a part of this,
because you just mentioned the golden handcuffs and the mortgage rates.
But it seems that people who's neighbor and I'm just
going to use a round number, maybe your neighbor sold
a home for seven hundred thousand dollars two years ago.
Your home may not be getting seven hundred thousand dollars
right now, but the sellers are not ready to make
(02:02):
those sort of price adjustments.
Speaker 3 (02:05):
Well, you're right on, and it's like we spoke about yesterday.
You know, I think the word that comes to mind
when I when we talk about pricing is resilience in
the metro area. You know, we saw we're going to
have our August data here within a day or two,
so certainly i'll fill you in. But you know, between
June and July we saw the medium close price basically
(02:26):
hold steady and when we see the amount of active inventory,
you'll peak above that ten thousand unit that we haven't
seen in gosh ten years. But pricing to stay steady
and where it's at, it's it's incredible. And I think,
you know, just like you had said, what we're seeing is,
you know, sellers are not willing to make those those
(02:46):
price decreases to force the sale. And because of that,
I think in many cases you have folks that want
to sell but may not need to sell. Right.
Speaker 1 (02:55):
As a realtor, I think that's got to be a
nightmare when you go and talk to a potential client
and they're like, you know, we just want to put
it on the margage and see what's going to happen.
As someone who's trying to make a sale, that's got
to be like, oh, not your favorite customer to have.
Speaker 3 (03:12):
Everybody's different, and we absolutely understand that, and I think
what we want is we understand you've been to this
mandate that bringing a house to market doesn't just happen,
and the last thing we're going to do is present
a home if it's not ready to be presented, and shoot,
with each situation being different, it's okay if we're in
(03:33):
the range of, hey, here's here's what we suspect the
market will bear, it's one thing. It's another thing if
if a seller doesn't want to put the time in
and is trying to be opportunistic and hit a price
that just isn't realistic. And we're not doing anybody any
any service by taking something like that on and having
someone go through the thrashing around and on market having
(03:57):
showing's happened if we're far off from day one on
what that pricing is and what the reality is going
to be.
Speaker 1 (04:03):
So are you finding with the people that you're meeting with?
Speaker 3 (04:06):
What are there?
Speaker 1 (04:06):
And I'm sure there's a million different but I'd love
to know kind of a general feel. Why are people
looking to sell? Are they looking to downsize, are they
looking to upsize? Are they moving? What are you hearing
from the people that are in the market to sell
their homes.
Speaker 3 (04:20):
It's a great question, and just like you said, you know,
every there's so many different reasons. You know, we see
a lot of folks that are leaving the state, and
you know, sometimes it's gosh, we hear things like traffic,
We hear things around the cost of living. You know,
we have a lot of folks moving to the south.
We hear the Carolinas a lot, and frankly, you know,
(04:44):
we have seen just the cost of things go up, yeah,
across the board. And so you know, although many folks
don't need to sell, we see a lot of folks
that want to just to make it a little bit
more bearable. And maybe those are folks that have a
long standing mortgage that is, you know, not the sixth
or the seven that we've seen as of recent and
(05:06):
sometimes it is sort of in the last eighteen months
or the last two years they've purchased the home and
kind of realized that, hey, this equation doesn't work. I
think the majority of the time we see folks downsizing,
but it really does. It varies across the board.
Speaker 1 (05:24):
So if you're talking to someone who's kind of one
of those people saying, look, you know, we're trying to
decide whether we're going to list right now. We're expecting
I and I'm trying to not be overly confident, but
I expect the Fed to drop the interest rates at
least twenty five basis points, which is basically a quarter
of a percent in September. Is do you feel the
(05:46):
same way, and if so, is that going to unleash
buyers who are able to say, look, okay, you know
what's it's not two percent but five Maybe low sixes
is a manageable thing, because I've seen mortgages in the
low sixes now.
Speaker 3 (06:01):
Absolutely, and we're seeing stuff quoted in the high fives
right now. There's sort of this unspoken rule and we've
heard it again and again especially lately, that you know,
we need to see rates in the mid five for
people to really want to make that jump ard to
let go of that three percent mortgage. So you know,
we're watching really closely. But I do expect that activity
(06:25):
will continue to increase, and we've seen it since the
end of July, you know, quite frankly, and with that
you are certainly in correlation to those mortgage rates going down.
You know, the narrative and understanding when we look at
the cuts that we expect is that to some extent,
it's already baked into the rate. You know that that
those cuts we're all looking at and expecting the same
(06:48):
thing that September you are twenty five basis points, maybe
fifty basis points. But I think the reality is is
that we're going to see a big jump in activity
as people become more optimistic about the future. I talked
yesterday about you know, it's not just the raid itself,
it's the news around the rate. It's the news around
the future and the economy and having optimism about you know, hey,
(07:11):
maybe this is still a little bit high now, but
it can work and in the future it's going to
be lower. And it looks to me and we expect
that that is going to be the case, and hopefully
that starts in just a couple of weeks when the
dead meets.
Speaker 1 (07:25):
You started this conversation by talking about, you know, neighborhoods
specific some neighborhoods are selling faster than others. But if
you've got money that you'd like to invest in real estate,
are there any deals right now? Are people sitting on
those prices waiting for them to come down.
Speaker 3 (07:42):
I would say that there are always deals the deals
come up when it's very specific to that seller. So
it's hard for me to say that, hey, in one
area there's more deals than another area because someone that
you know, we deal with folks in certain cases that
have to get to family in another state very quickly,
(08:02):
and of course with a fudicial duty. It is our job,
that is our responsibility get them the very most. But
if they don't want to bring it to market, you know,
that may be you know, create an opportunity for a
buyer and someone who who potentially has the ability to
take care of some of those repairs that certain sellers
don't want to mess with or bringing to market, and
(08:22):
or even bringing it to market at all. We have
a lot of folks that just say, hey, you know,
we need to do this quickly. You know, do you
have somebody that might be interested in And of course,
like you and I have time, we've got a big database,
so you know, most of the time we can get
that done at a price that makes sense for everybody.
Speaker 1 (08:37):
So I wanted to ask you about the buyers that
you're seeing. Are these first time home buyers, because I
feel like there are a lot of i'll call them
middle millennials who are ready to buy a home right
and they've maybe been sitting out waiting for those lower
mortgage rates. What do you see on the buy side
who is out there shopping.
Speaker 3 (08:56):
We do see a lot of first time home buyers,
and I think, you know, first I have a home
buyers want to want to own a home because the
concept of owning a home has been something that they're
you know, part of their goals. They're part of something
that they have set forth in what they want for
their lives, and they're less concerned about, you know, some
(09:16):
of the complexities and implications. I think that maybe some
of us.
Speaker 2 (09:21):
Like you and I many kind of overthink, yeah.
Speaker 3 (09:24):
We're trying to guess what's going to happen here and there.
I mean, you know, frankly speaking, we believe fully you
know that in the next you know, few quarters, you're
going to see rates come down. And so, you know,
we've seen first time home buyers be pretty active, gosh
over the last couple of years, because we remember what
it was like in twenty twenty one. You could not
(09:45):
you couldn't get an offer accept and especially as a
home first time home buyer, when you don't have a
big down payment, it's even trickier.
Speaker 2 (09:52):
So we are seeing a lot of opportunistic folks take advantage.
Speaker 3 (09:56):
And and you know, those people so far have done
quite well because they are ticking action when some of
us are overthinking things.
Speaker 1 (10:06):
Right, sometimes making a decision is better than waffling about
a decision, especially when I actually think ed and you
and I talked about this yesterday. I think when we
have the first rate cut, the market heats up. If
there's another rate cut in December, which that's it's more
debatable than the rate cut that I'm pretty certain is
going to happen in September. But if that rate cut
(10:27):
happens in December, then it becomes a feeding frenzy, and
that's when it becomes again a seller's market. And if
you're sitting on the sidelines now as a potential buyer,
I think you're missing opportunities that are out there right
this second. Because what do they say, ed, you date
the rate, you marry the house, right, you don't have
(10:49):
to worry about marrying the rate. The rate you can
REFI later. So I've just been telling like young people
that I know have been sitting on the sidelines, I'm
like I would really look right now because you you
don't want to be in it when everybody else is
in it. You want to be in it before everybody
else is in it.
Speaker 2 (11:05):
And I think you're absolutely right.
Speaker 1 (11:07):
Yeah, So if you want to buy or sell, it's
time to call Ed Braither. He and his team are
the absolute best ed. Give everybody your phone number.
Speaker 3 (11:16):
Uh seven two oh six five nine four nine five nine,
excuse me, seven to sixty five oh four nine five nine.
You know we are here to inform, you know, in
a big part of this man you said, some folks
are considering selling maybe is it now?
Speaker 2 (11:28):
Is it in the future, and then the same side
is buying if nothing else.
Speaker 3 (11:32):
You know, we are really focused and really committed and
just empowering our folks of information, you know, so they
can make an educated choice for themselves. And I'll tell
you what. As a buyer right now, you know, you've
got to be disciplined in what's a fit because there's
great opportunities and you don't need.
Speaker 2 (11:50):
To bend over backwards. And it's been a long time
since we have been able to say that. So if
you're disciplined, you've got more inventory than you used to
and I think it's a great time to start the process.
Speaker 3 (12:01):
Well, I do know that, you know.
Speaker 1 (12:02):
I I'm on realtor dot com all the time, and
like really, for someone who's not actively in the market,
I know way more about what houses are sitting and
where than I should, Okay, And I do know that
there are especially if you're a first time home buyer
looking to get into the condo market. Now is the
time to get into the condo market because there's a
lot of condos on the listing sites right now, so
(12:24):
there are opportunities. And Ed would be the guy I
would always recommend Ed Pratherer dot com, Ed p R
A t H e R dot com, Ed, I appreciate you, always.
Speaker 3 (12:35):
A pleasure to be on. Thank you so much, manmy,
and just let us know how we can help.
Speaker 1 (12:38):
I sure will, thanks Ed. He is uh, he's just fantastic.
What is happening in the real estate market. I decided
to check with my realtor, Ed Fraether, because he knows
what's going on. Good afternoon, I must say, good morning.
Speaker 2 (00:09):
Ed, Hi, ed Bie many thank you for having me.
Speaker 1 (00:13):
Well, thanks for coming on, because you and I had
a chat yesterday and the market is I'm just going
to use the word weird right now. Is that a
fair assessment, because things are sort of like everybody's stuck
on ready set, ready set, ready set, waiting for rates
to drop. So right now, let's talk about the state
(00:35):
of the real estate market as it is. There's some
good news in terms of availability.
Speaker 3 (00:41):
Well, I think you're right on. You know, we've used
the word weird, strange, you know, somewhat volatile, and that's
because you know, we've been talking about looking at hoping
for the FED to make cuts. We see that happening
sooner than later, but the cuts aren't here yet, and
so just like you said, we're sort of we're all
waiting for the is And of course we have sort
of these golden handcuffs. As far as you know, a
(01:03):
lot of sellers, even with the need to sell, have
a hard time letting that three percent mortgage go you know,
the FED men. At the end of July. We've seen
a lot of activity though, So you know what I
mean by that is is more mortgage applications. You know,
as we foresee and expect, a soft landing is going
to be the reality or hopefully is reality, as well
(01:25):
as showings and even offers. But I'll tell you it
is really specific to property in micro market, meaning kind
of the neighborhood. You know, is you got to be
real careful because.
Speaker 2 (01:36):
If you're not positioned well, if you're not priced.
Speaker 3 (01:38):
Well, the home could easily sit.
Speaker 1 (01:40):
And let's talk about pricing as a part of this,
because you just mentioned the golden handcuffs and the mortgage rates.
But it seems that people who's neighbor and I'm just
going to use a round number, maybe your neighbor sold
a home for seven hundred thousand dollars two years ago.
Your home may not be getting seven hundred thousand dollars
right now, but the sellers are not ready to make
(02:02):
those sort of price adjustments.
Speaker 3 (02:05):
Well, you're right on, and it's like we spoke about yesterday.
You know, I think the word that comes to mind
when I when we talk about pricing is resilience in
the metro area. You know, we saw we're going to
have our August data here within a day or two,
so certainly i'll fill you in. But you know, between
June and July we saw the medium close price basically
(02:26):
hold steady and when we see the amount of active inventory,
you'll peak above that ten thousand unit that we haven't
seen in gosh ten years. But pricing to stay steady
and where it's at, it's it's incredible. And I think,
you know, just like you had said, what we're seeing is,
you know, sellers are not willing to make those those
(02:46):
price decreases to force the sale. And because of that,
I think in many cases you have folks that want
to sell but may not need to sell. Right.
Speaker 1 (02:55):
As a realtor, I think that's got to be a
nightmare when you go and talk to a potential client
and they're like, you know, we just want to put
it on the margage and see what's going to happen.
As someone who's trying to make a sale, that's got
to be like, oh, not your favorite customer to have.
Speaker 3 (03:12):
Everybody's different, and we absolutely understand that, and I think
what we want is we understand you've been to this
mandate that bringing a house to market doesn't just happen,
and the last thing we're going to do is present
a home if it's not ready to be presented, and shoot,
with each situation being different, it's okay if we're in
(03:33):
the range of, hey, here's here's what we suspect the
market will bear, it's one thing. It's another thing if
if a seller doesn't want to put the time in
and is trying to be opportunistic and hit a price
that just isn't realistic. And we're not doing anybody any
any service by taking something like that on and having
someone go through the thrashing around and on market having
(03:57):
showing's happened if we're far off from day one on
what that pricing is and what the reality is going
to be.
Speaker 1 (04:03):
So are you finding with the people that you're meeting with?
Speaker 3 (04:06):
What are there?
Speaker 1 (04:06):
And I'm sure there's a million different but I'd love
to know kind of a general feel. Why are people
looking to sell? Are they looking to downsize, are they
looking to upsize? Are they moving? What are you hearing
from the people that are in the market to sell
their homes.
Speaker 3 (04:20):
It's a great question, and just like you said, you know,
every there's so many different reasons. You know, we see
a lot of folks that are leaving the state, and
you know, sometimes it's gosh, we hear things like traffic,
We hear things around the cost of living. You know,
we have a lot of folks moving to the south.
We hear the Carolinas a lot, and frankly, you know,
(04:44):
we have seen just the cost of things go up, yeah,
across the board. And so you know, although many folks
don't need to sell, we see a lot of folks
that want to just to make it a little bit
more bearable. And maybe those are folks that have a
long standing mortgage that is, you know, not the sixth
or the seven that we've seen as of recent and
(05:06):
sometimes it is sort of in the last eighteen months
or the last two years they've purchased the home and
kind of realized that, hey, this equation doesn't work. I
think the majority of the time we see folks downsizing,
but it really does. It varies across the board.
Speaker 1 (05:24):
So if you're talking to someone who's kind of one
of those people saying, look, you know, we're trying to
decide whether we're going to list right now. We're expecting
I and I'm trying to not be overly confident, but
I expect the Fed to drop the interest rates at
least twenty five basis points, which is basically a quarter
of a percent in September. Is do you feel the
(05:46):
same way, and if so, is that going to unleash
buyers who are able to say, look, okay, you know
what's it's not two percent but five Maybe low sixes
is a manageable thing, because I've seen mortgages in the
low sixes now.
Speaker 3 (06:01):
Absolutely, and we're seeing stuff quoted in the high fives
right now. There's sort of this unspoken rule and we've
heard it again and again especially lately, that you know,
we need to see rates in the mid five for
people to really want to make that jump ard to
let go of that three percent mortgage. So you know,
we're watching really closely. But I do expect that activity
(06:25):
will continue to increase, and we've seen it since the
end of July, you know, quite frankly, and with that
you are certainly in correlation to those mortgage rates going down.
You know, the narrative and understanding when we look at
the cuts that we expect is that to some extent,
it's already baked into the rate. You know that that
those cuts we're all looking at and expecting the same
(06:48):
thing that September you are twenty five basis points, maybe
fifty basis points. But I think the reality is is
that we're going to see a big jump in activity
as people become more optimistic about the future. I talked
yesterday about you know, it's not just the raid itself,
it's the news around the rate. It's the news around
the future and the economy and having optimism about you know, hey,
(07:11):
maybe this is still a little bit high now, but
it can work and in the future it's going to
be lower. And it looks to me and we expect
that that is going to be the case, and hopefully
that starts in just a couple of weeks when the
dead meets.
Speaker 1 (07:25):
You started this conversation by talking about, you know, neighborhoods
specific some neighborhoods are selling faster than others. But if
you've got money that you'd like to invest in real estate,
are there any deals right now? Are people sitting on
those prices waiting for them to come down.
Speaker 3 (07:42):
I would say that there are always deals the deals
come up when it's very specific to that seller. So
it's hard for me to say that, hey, in one
area there's more deals than another area because someone that
you know, we deal with folks in certain cases that
have to get to family in another state very quickly,
(08:02):
and of course with a fudicial duty. It is our job,
that is our responsibility get them the very most. But
if they don't want to bring it to market, you know,
that may be you know, create an opportunity for a
buyer and someone who who potentially has the ability to
take care of some of those repairs that certain sellers
don't want to mess with or bringing to market, and
(08:22):
or even bringing it to market at all. We have
a lot of folks that just say, hey, you know,
we need to do this quickly. You know, do you
have somebody that might be interested in And of course,
like you and I have time, we've got a big database,
so you know, most of the time we can get
that done at a price that makes sense for everybody.
Speaker 1 (08:37):
So I wanted to ask you about the buyers that
you're seeing. Are these first time home buyers, because I
feel like there are a lot of i'll call them
middle millennials who are ready to buy a home right
and they've maybe been sitting out waiting for those lower
mortgage rates. What do you see on the buy side
who is out there shopping.
Speaker 3 (08:56):
We do see a lot of first time home buyers,
and I think, you know, first I have a home
buyers want to want to own a home because the
concept of owning a home has been something that they're
you know, part of their goals. They're part of something
that they have set forth in what they want for
their lives, and they're less concerned about, you know, some
(09:16):
of the complexities and implications. I think that maybe some
of us.
Speaker 2 (09:21):
Like you and I many kind of overthink, yeah.
Speaker 3 (09:24):
We're trying to guess what's going to happen here and there.
I mean, you know, frankly speaking, we believe fully you
know that in the next you know, few quarters, you're
going to see rates come down. And so, you know,
we've seen first time home buyers be pretty active, gosh
over the last couple of years, because we remember what
it was like in twenty twenty one. You could not
(09:45):
you couldn't get an offer accept and especially as a
home first time home buyer, when you don't have a
big down payment, it's even trickier.
Speaker 2 (09:52):
So we are seeing a lot of opportunistic folks take advantage.
Speaker 3 (09:56):
And and you know, those people so far have done
quite well because they are ticking action when some of
us are overthinking things.
Speaker 1 (10:06):
Right, sometimes making a decision is better than waffling about
a decision, especially when I actually think ed and you
and I talked about this yesterday. I think when we
have the first rate cut, the market heats up. If
there's another rate cut in December, which that's it's more
debatable than the rate cut that I'm pretty certain is
going to happen in September. But if that rate cut
(10:27):
happens in December, then it becomes a feeding frenzy, and
that's when it becomes again a seller's market. And if
you're sitting on the sidelines now as a potential buyer,
I think you're missing opportunities that are out there right
this second. Because what do they say, ed, you date
the rate, you marry the house, right, you don't have
(10:49):
to worry about marrying the rate. The rate you can
REFI later. So I've just been telling like young people
that I know have been sitting on the sidelines, I'm
like I would really look right now because you you
don't want to be in it when everybody else is
in it. You want to be in it before everybody
else is in it.
Speaker 2 (11:05):
And I think you're absolutely right.
Speaker 1 (11:07):
Yeah, So if you want to buy or sell, it's
time to call Ed Braither. He and his team are
the absolute best ed. Give everybody your phone number.
Speaker 3 (11:16):
Uh seven two oh six five nine four nine five nine,
excuse me, seven to sixty five oh four nine five nine.
You know we are here to inform, you know, in
a big part of this man you said, some folks
are considering selling maybe is it now?
Speaker 2 (11:28):
Is it in the future, and then the same side
is buying if nothing else.
Speaker 3 (11:32):
You know, we are really focused and really committed and
just empowering our folks of information, you know, so they
can make an educated choice for themselves. And I'll tell
you what. As a buyer right now, you know, you've
got to be disciplined in what's a fit because there's
great opportunities and you don't need.
Speaker 2 (11:50):
To bend over backwards. And it's been a long time
since we have been able to say that. So if
you're disciplined, you've got more inventory than you used to
and I think it's a great time to start the process.
Speaker 3 (12:01):
Well, I do know that, you know.
Speaker 1 (12:02):
I I'm on realtor dot com all the time, and
like really, for someone who's not actively in the market,
I know way more about what houses are sitting and
where than I should, Okay, And I do know that
there are especially if you're a first time home buyer
looking to get into the condo market. Now is the
time to get into the condo market because there's a
lot of condos on the listing sites right now, so
(12:24):
there are opportunities. And Ed would be the guy I
would always recommend Ed Pratherer dot com, Ed p R
A t H e R dot com, Ed, I appreciate you, always.
Speaker 3 (12:35):
A pleasure to be on. Thank you so much, manmy,
and just let us know how we can help.
Speaker 1 (12:38):
I sure will, thanks Ed. He is uh, he's just fantastic.
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Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
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If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.