DID YOU KNOW? Citigroup, Goldman Sachs, Wells Fargo and JPMorgan Chase over the past year have restarted or expanded the business of spinning fresh pools of mortgages into securities. They are adding a jolt of energy to efforts to revive the so-called private-label market for mortgage bonds, which virtually disappeared after it blew up during the financial crisis of 2008. Smaller operators have long tried, but mostly failed, to rebuild what was once among the most significant businesses on Wall Street. In 2018 around $70 billion of mortgages ended up in private-label mortgage bonds, according to the Urban Institute. Though that is far below a peak of more than $1 trillion in pre-crisis years, it is the most since 2007. (WSJ)
The big question I have been asked over and over lately is: “are we at the peak?’. The downward trend over the summer has left some on edge about the future of real estate. Last year the market stalled from October through December with a surge in January. All predictions steer toward a slower appreciation of the market around 4% which is a cool down from the insane 15% increase we have been experiencing.
Since Labor Day I have seen a significant increase in housing supply and the same demand. Buyers are pickier and not as much in a rush for purchasing the first house they see. However, houses are still selling and some are setting new records while others linger on. Despite the high demand a well priced home will sell while a “defective” or overpriced home will sit. Some houses fall through the cracks too. If the house does not catch the interest of a buyer in the first 2 weeks chances are it will take longer to sell as the stigma of “something must be wrong” is applied sometimes subconsciously.
Here are some fun and interesting data:
Please reach out to me if you want a more detailed analysis of a neighborhood or would like an opinion of value for your property. I am happy for any referrals, recommendations you will share with me as well.