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December 11, 2019 2:12 pm
Plan to fail. When planning matters radio folks, this is Peter Rochon, which on planning planning matters. PO are going to discuss the housing market on today's figment of the program. We have a special guest. The owner of DOB mortgage services Debbie Boyd joining us on the program. Betty welcoming the show where we want to get some insight from somebody on the inside of things that we lets talk about what we already have seen what we know 2019 was the health of the housing market. What were you seeing what will I don't want everyone to believe by now they're having to look harder certain income can only provide and harder to find. There are more think that out there people that are buying out first time alone with everything perfect.
When I got my first out the carpeting and repainting the homes that are ready to be moved in and work there ever a lot of Americans are aging in place long-term care.
People living in our homes longer allow the home to the home the first time home buyer when grandma moved out to live with her family. How and be a great first-time homebuyer out there usually smaller, older Bogart available right now because people are a game played back that million dollar homes and depending on the picture and maybe moving Out I'm in the Dallas area about 1.5, moving very, that the pipe between 301.5.
We cannot bill the Dallas-Fort Worth Metroplex can keep everybody wanting and getting in a house or two or three months out of even starting in the quote affordable range. The starter homes really tough market, especially since, as you said nobody wants to do the fixing up or maybe it's not that they don't want to with maybe the demographic that's moving into that and looking for that kind of homes don't know how those that do know how maybe don't want to anymore than the new homeowners they've never done anything like that before, but that that of younger don't know their hands.
They really don't make them and they don't want to think that they're better spent another way, so department to department and better play and be social then culinary new and different that a priority.
So let's talk about the future.
What we see coming 2020. What is your feeling with your your hand on the pulse of the industry.
How do you see the 2020 housing market playing while I people down there because they were confident and going to rain near Garibaldi right now you couple that with the parents on the product that we need to build loan and the builder can build that they can get a network.
Because there's not enough skilled workers to go around right now and I think we can drill for local very personal. If you family dynamic and doing well. You got your job is secure you're getting a lot about how you are not secure in your job or you're having more kids or your health is not good you're not going to purchase a new house.
Great though that families feel that the strength of the political scene. I think people were knocking to move. We don't know become an in office they don't like that happen with the election we don't know what happened with that election to the presidency right now. People learn the only people that are not nervous but don't several of those yellow eyes portion of society don't make extra money going there now and think your job they're going to do it and what the election look like in talking with Debbie Boyd.
She is owner of DOB mortgage services. Debbie, can I ask you about a few mythologies of the housing market that I have heard in you and you can verify if this is what you have seen to court.
I have heard that the week between Christmas and New Year's is actually the time to get the best deal on a house.
Maybe not the hottest housing market maybe not the most houses sold in that week, but one of the best times of years to get a better deal. I agree. Right now the member is been a great month to get Neil a lot of people at the house is carried over from her many making to help payment for the relocation company. The house is vacant. Want to get it off before the end of the year so they started out the November December.
Go out and see a lot of Purcell by owner right after Christmas because something happened just want to get recruitment before they have people come in our homes again help propel right after Christmas. Now a great time to write something every day. Try because people are now whatever is causing them to know to make this change. Now they're motivated.
They've gotten through the holiday before a lot of people holiday pay is a benchmark. And once you get through Christmas. Now they can move on with their life. So a lot of people are on hold right now don't really like time before the housing market heat up in the spring and it is so that it will so maybe the decline that we have seen over its lower right now. Maybe that's just the seasonal trend and things will boom again and pick up significantly in the spring of 20 2010 closing month not slow for me but I didn't. Now I'm in Dallas. He then often stationary on how to run a rectangle. The Raleigh market. So it's also a pretty booming market moving in companies are still relocating the traditional boom in the spring.
Families want to continue living rather hopeful about and then element you know corporate relocation generally happened at the end of the summer or the beginning of the market to get you moved over the summer, a lot of company realtor doing during the year because they don't really care them live in the company. Everybody though families are uprooted and will we get the buying power. Now people without kids are people that are making a transitional change with their businesses making anytime of the year, but the traditional uptake in the yard look prettier like the flowers comeback appearance knowing area no one will think out and get lost in the snow to look at property usually left there relocating so those automatically uptake in its bring your pictures how to look their best.
Now it's hard to look past the clutter of the houses during Thanksgiving and Christmas all the stuff everywhere they like a cleaner and everything that normally widen a negative hobo closing until May when the kids are out of school, but the Debbie Boyd again owner. It DOB mortgage services who were talking to about the housing market.
Debbie we've talked so far on on this segment of the program a little bit about seasonal boom and bust with with the housing market on this program. We talk a lot about demographics and maybe this is a little bit longer term but we got the baby boomer generation.
Right now that is the peak of their earning years the peak of their buying years and a lot of them. In fact, turning the corner into sellers and downsizing. Maybe a little longer term that they are the baby boom that the boom is in their title. Do you see a bus coming in in the housing market as there are more vacancies as there are more sellers and and eventually is as the baby boom generation leaves us. I think we are going to see a lot of traffic with baby rumors in the next 10 years so I'm at the end of the baby or a gun. 55. I didn't even know I was a baby boomer something else on the baby boomer. My kids are out of college. I don't need a big house. I downside I have client in their 70s that are in the middle of the baby boomers by ages and they are finding that they don't have enough money to get by with their retirement and think happened to their health. Between the ages of 50 and 75 gone wrong. The stroke that the hardtack of parking for Alzheimer's dementia. All these things are going on that they did not see coming because they did a super active generation, and even though we talk about all the time and we say didn't happen. They don't think that happen to them and at 75. Now they're starting to sell their homes to their two-story and I can go up and down know the life of the husband validate you know can get down there the more people transition out a bigger home in the smaller home in the CSU and retirement community which I turned 55 so I can move in the mother community. You gotta be kidding. But there where the biggest housing boom in you, they cannot build small cute home fast enough for the senior, though I think what is he more booming there and then Cortes can open houses for other people people. The door then starter homes are going to move up the ladder to medium-size calm and and it cycle is a cycle every year and I think it's going to get even bigger than the other reason.
Baby boomers are going to sell their home to downside and move across the country and the cost of living deliverance cheaper to lead.
So if you're in a state that had super high taxes.
We see a lot of people leaving California not only the workers and companies there relocating, but people don't want to pay the taxes anymore.
A high tax state and you have the option of retiring somewhere with the taxes are not due you. As a result, see that the cost of some of these larger especially like the suits in suburbia houses the McMansions might come down in price as a result of that needs to sell and relocate and in the vacancies that might occur on the counter and so if you don't have a demand for the $600,000 home when you're going to sit on that a little bit longer at your city is declining or if you're to build the area that is not supporting if the workers don't have enough good job and big companies are transferring out of your state speed up and take you longer to sell the millennial seem to like the condo, the urban living apartments and they don't mind that is much do you see that I don't want to spend two hours here. I spend two hours in the like all of it. They want to be able to walk there that they want to be in the same 510 minute drive so I think depending on where they were going to find that to gravitate towards whatever they're not going to spend time going to the city to live in suburbia and work them out there going to make it different and not all bad up the revitalize a lot of downtown because they want to work there. They will walk.
I don't want to drive but rather by me all this stuff sounds funny when we talk about it because they're so different, but they don't have any intention of spending an hour in a commute one way to get to a job just to live in suburbia milk ticket out of the apartment complex and pretty clanking.
You know there to $3000 a month and most cities they can live in that living in a home about home either because they feel that anchoring them and I don't want to be forced to stay somewhere. They don't want to be like when you and I were younger you the whole dream was to get out the light and his dog and that was your life. That's not their lives. That's not what they think they want to work at home.
They don't want to attribute suburbia means nothing to not until they probably get older because there's nothing down there that are wanting to stay in his apartment. They can buy a nicer apartment have better amenities than they can living in the house by themselves. Another kind of recent trend in the housing market.
Debbie is these services that will buy your house without showing and there are a lot of different ones out there, but the advertisement is that you can sell your house now without the showings.
There are multiple services you could probably shop around to get multiple offers from that kind of stuff.
How do you see that affecting the overall housing market. Well, I think that is really cool. Wrinkle is going to be here with us to stay for a long time. Like when Amazon people think that will convenient come to your door then you have to go out tomorrow to your door, so why bother going along and you have to spend hours walking around when you can be on your phone and order that same thing with the house and they don't want people walking in and out of their house and they don't want have to show that out.
A lot of people you know I don't know if you getting any younger. But not everybody lives in England still very squeaky clean, glamorous how children need repair. Yeah, yeah, I mean there's laundry everywhere in the rack and I had to keep it nice and clean and at some point there. They say I just want to leave.
I don't want have to fix repair companies don't require a lot of repairs to let you they'll give you $10,000 less but then behind you about the defendant pink crew right next to the longer night the mind getting it and sell it and time and effort that buyers and sellers today don't want people coming in the house and they don't have time for open houses. They don't want strangers in their home and more convenient another nonemotional this is that you can get you off about companies offer you two or three bids writing go out to attribute company and they'll give you a price. No horrible prices is like buying cars without going back and forth for hours at a dealership like he used to do now. They even bring you look hardier help the tenants rights, rates, what we see is the future for rates. Let me preface that by saying what I have heard is that mortgage rates tend to hit their lowest point on election eve.
The trend has been that they've come down and they hit their lowest point on the night before a presidential election, which I found interesting on what the market thinks the true could win. So all of it going to hinge on the public opinion of how the country is going. So if the rates are going to go down because the market and in the Fed and everyone that is in part of that transaction thinks that this is going to be good for them because whoever they feel that it's a problem. They may also lower the rate because they don't want to freak out the market like when when come down like that let you remember, no one thought he would land go.
Everyone after he won the market kind of went crazy because it was a nonevent. He promised all those great things he promised to write down people would have more money in her pocket.
There was a consumer confidence. The Economy going rates to place they down the Fed can't break down when they're unsure and hoping to entice more people to buy so the stock market tends to hate uncertainty and and become more volatile when there is uncertainty, perhaps the housing market and the rates that we can get on mortgages are more advantageous for consumers during times of uncertainty I think so because they said their goal is to keep the market moving and so if people are getting nervous, then they may not want to buy a house, but if the rates are attractive enough that will override money will override their common sense.
Are there other so that beagle you don't mind going to buy a new car 0% for the first four years, because everyone has that. I think it makes sense that things are going to be better down the road. So if the presidential election shows that it may not be better going down the road and the Fed will probably keep rates low to keep the market moving to counteract some of the other bad stuff that might be going on again.
Debbie Beloit she's owner of DLP mortgage services talking about of the housing market.
What we saw in 2019. What we expect to see in 2020. Debbie, no matter what the current trend is there does seem to always be aside of the real estate industry there to take advantage of.
No matter what the trend is everywhere every month, a report about that down.
This is fallen greatly and it can be an eight point overall, I think there always is an advantage to the housing market, you gotta turn it to your advantage.
So if the housing rates go up. What is that mean that means that people are not to be able to go forward as big houses they had before. Quit buying by big they can afford the bigger house in a price range and that range may ship a little bit. But the amazing opportunity for Dr. because the people cannot afford that lending rates get too strict and we can't land a lot of people get a raise the credit for people can get and how like you to then a perfect time for landlords and investors to come out of the woodwork and buy more property because now the people I got to be rendered to the buyer so it in my understanding is always a benefit for the market. You just have to be on that side of the benefit the theater you buy a smaller house or you say a renter to the investors because now they can take more properties and rent them out to people can qualify to buy the veteran and the renter I know my business is busy. No matter which one is that and real estate has created more millionaires than most any other asset yes exactly I would say now is a great time to buy in and I would say that if you're an investor by now will be some special about parents and foreclosures see a lot of foreclosures right now because everyone making a bill, but in the election doesn't go well. Companies start laying people off.
It the economy slows down and companies lay off workers. This email, foreclosures, and that's not always bad. Now the great conference.
Dr. you know these columns at prices that are really affordable annual tournament around property.
So I just think we have to look at the market is going to punch you in the stock market goes down Dr. on sale. There's always people there to buy it right about that but you just have to say that is really good. Either way, you, Debbie. We appreciate your time your perspective on the housing market. Of course, one of most Americans largest investments in our home yet so much to do so. Thanks for providing your insights that you think your time today. We do appreciate Debbie's time here on Rich on planning planning matters radio again.
I am Peter Rochon's founder of Rochon planning if you want to look at your overall portfolio of your financial and investment and retirement plan where your house and the equity that you've built up and where real estate may play a role in your planning.
Welcome to give us a call. We do offer the opportunity for a complementary review of your total comprehensive plan to give us a call at 803 385-944-6800 338-5944 to take advantage of the time the opportunity for a complementary financial investment portfolio and planning review get fear Rochon here with Rich on planning planning matters radio for more additions of programs to visit Rich on planning.com that's rich on planning.com or call 803 385-9444 to speak with you.
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