WE HAVE THOUGHTS.
…and by interesting, we mean “interesting”, not “interesting!”
So yeah, there’s been a bit of chatter about interest rates inching upwards lately, and by “chatter” we mean people scream-crying from the rooftops (of the homes they can no longer afford to buy), and by “inching” we mean racing at the speed of an F-150 merging from I-696 to Mound Road (see: fast).
Things have escalated kinda quickly in the mortgage world.
Ok, so what does it all mean? Well for starters the hope is that by raising rates, those crazy bidding wars on the resale market might calm down; granted, they are not going away any time soon, but maybe they’ll get a little less… crazy. Like, 3-5 offers per listing, instead of 50.
And for builders, it means slightly fewer buyers might make materials and labor more available, and build times more… reasonable.
No, we don’t think prices are going to drop, but hopefully, they’ll level off; which will then hopefully cause rates to stop climbing and level off as well – maybe, even drop back down a bit.
What to do in the meantime… well that depends on your situation.
If you don’t need to move immediately, easing into the process slowly is likely your best bet; watch and learn now, so you can pounce on an opportunity should it arise.
However, if the luxury of time is NOT on your side, 5% rates aren’t the end of the world. Despite the craziness of the past few years where rates dropped below 3%, a 5% rate is still historically fairly reasonable; they were 8.5% when Jeff started in the biz (see: old), and a staggering 18% in the early 1980’s. Context.
While we might not love adjustable-rate products, we are seeing them start to make a comeback; a 10-year ARM is running around 4% and is obviously the less risky/more desirable option than the 1/3/5-year variety that caused so many problems during the Great Recession*.
Not sure what your next move should be (literally and figuratively)? Let’s chatand figure out the best timetable/options for you and your family.
*our legal team advises speaking with a qualified mortgage rep – not the two guys who went to MAC schools and count on their fingers…
(pictured above: Interest rates be damned, sales are still brisk at the $900K+ price point in City Modern…)
OUR NEW CONSTRUCTION COLLECTION
LOT #1 | WHISPERING RIDGE ESTATES
This home is now complete and move-in ready! Featuring the 4 bed/2.5 bath/2,760+ sqft Wellington plan by Strathdale Development, it includes a Gourmet Kitchen, trimmed & cased arches, glass doors on the study, and more! Check out the most recent pics (below) of our new modern-craftsman style trim!
LOT #15 | WHISPERING RIDGE ESTATES
The foundation is in, and progress is being made on this BRAND NEW/NEVER-BEEN-BUILT ranch floor plan by Strathdale Development. Featuring 3 bed/2.5 bath/2,450 sqft, a 3-car garage, and a ton of high-end finishes, we are excited to see this home take shape.
Located near Benstein & Glengary in Commerce, Whispering Ridge Estates is located in a particular section of the township that might be the only one which doesn’t require navigating 2-lane roads while winding around every lake in Oakland County, resulting in commute times that range from 30 min to the Donner Party. Yay! Connect with us for the details!
760 BOGIE LAKE | WHITE LAKE
If you’ve ever wanted to live on a peninsula within a peninsula (because Michigan) then this is the homesite for you.
Looking bricked and beautiful, Kensington Family Homes offers this new ranch floor plan featuring 3 bed/2.5 bath and nearly 2,000 sqft, with an attached 3-car garage. High-end finishes abound, as well as plenty of spectacular wooded and water views.
The lot is even big enough that there’s enough space for an outbuilding by the water!
OUR NOT NEW BUT NEW TO YOU COLLECTION
6739 COLONY | WEST BLOOMFIELD
Featuring 30 feet of frontage on Upper Straits Lake, enjoy lake life this summer in this spectacularly renovated home.
Offering stunning views and loaded with updates, you can live your best vacation life all year round.
Connect with Lori for the details!
IN OTHER REAL ESTATE NEWS…
LAFAYETTE WEST | DETROIT
With neighboring development Pullman Parc rising from the dirt at an impressive pace, ground has now been broken on the next development in Detroit’s architecturally-renowned Lafayette Park neighborhood, Lafayette West. The $150M development will feature 318-residential units, with a mix of condominiums and apartments, spread out over a collection of 5-story buildings, and loaded with amenities. While the location is just outside of the CBD, it’s adjacent to the Dequindre Cut, and within walking distance to Downtown, Eastern Market, and the River Walk… [read more]
THE SHORES AT CRYSTAL LAKE | PONTIAC
You know what, why not… ‘SUP PONTIAC! First, plans for The Shores at Crystal Lake are announced, and then a day later Crain’s Detroitproclaims a development boom coming to Pontiac and we’re like whoa, slow down Crain’s – let’s pace ourselves here; development news is pretty rare in these parts (see: never) so let’s just enjoy this announcement for what it presents – potential. The development, located on a vacant peninsula extending into Crystal Lake (spoiler alert: it is not crystal), will feature a mixed-use development spread over 34 acres with retail, dining, recreation, entertainment, and 1,200 (mostly multi-family) residential units. The developer plans to break ground next year, though the project still needs to clear final site-plan approval… [read more]
BUILDERS: DON’T JUST LIST YOUR HOMES…
GET THEM IN FRONT OF THE RIGHT BUYERS!
Our website caters exclusively to new-home-specific buyers, so in addition to the usual audiences found on the MLS, Zillow, etc., we also bring you local buyers searching specifically for new homes, by creating original, organic content, and pairing it with a social media strategy that guides prospects directly to your listing; and we do it for less than what resale agents charge.
Get in touch to find out how we can sell your homes AND save you money in the process.
Questions about your new home search? Call or email us today – we look forward to hearing from you! Not ready for that kind of commitment? Check out our new-home-specific-search and email us incognito. Use a name like Jim Nasium. We’ll never know it’s you…
Lou Bitove & Jeff Bortnick, owners of The New Home Experts®, have more than 35 years combined experience in real estate, much of that with builders like Pulte & Toll Brothers. They also provide market research for area builders, developers and national firms. If you’re considering a new home, remember: the builders rep represents the builder, not you. Work with the only local agents in Metro Detroit to specialize in new homes, and save money in the process – ask us how!