Feb 25, 2023
In this special episode of the Martini Mortgage Podcast, Certified Mortgage Advisor and Raleigh mortgage broker Kevin Martini discusses the 4 Stages of Buyer Demand and how homebuyers can use them to maximize their advantage in the current real estate market.
Kevin starts by acknowledging the shift in sentiment among homebuyers and homeowners in the current market, caused by an information crisis about housing rather than a housing crisis itself. He stresses that demand for housing currently outstrips supply across the US, creating upward pressure on pricing.
Kevin reminds listeners that although the current shortage of homes is a challenge, it is not a new phenomenon and has been a long-term issue that will take years, if not decades, to resolve. According to research from Fannie Mae, there is a 3.8 to 5 million home shortage in the US.
He cautions that predicting a rinse and repeat of the housing crisis of 2008 is unfounded, as that crisis was caused by housing and not a recession. Real estate is a long-term investment and goes up and makes higher highs over time, despite the occasional retracement.
Kevin explains that mortgage rates live in the bond market, and the nemesis to a bond is inflation. When inflation is tamed, mortgage rates will drift lower. Currently, mortgage rates are in the high tides, but they are not predicted to reach double digits. According to experts and pundits, mortgage rates may start with a 4 by 2024-2025.
To help homebuyers navigate the current market, Kevin shares the 4 stages of buyer demand, which are represented by a four-light stoplight. The red light represents weak buyer demand, orange represents limited buyer demand, light green represents good buyer demand, and the bright green light represents strong buyer demand.
He advises homebuyers to take advantage of the red and orange stages to reduce their competition and take advantage of a seller's willingness to participate, which could make the deal more attractive. This also protects the homebuyer from paying a higher premium for the same home later. Kevin suggests taking advantage of temporary seller-funded buydowns, which can provide an interim low rate today.
In conclusion, Kevin reminds listeners that although the shortage of homes creates challenges, it also presents opportunities for homebuyers. He emphasizes that the best time to secure an epic mortgage rate was during the pandemic, but the next best time is right now.
Understanding the 4 stages of buyer demand and how to navigate the real estate market will help homebuyers achieve a win-win-win situation: buying in a tight real estate market, getting incentives from the seller, and having an interim low rate today.
Listeners are encouraged to contact Kevin personally with any questions or for trusted advice. Overall, this episode provides valuable insights into the current real estate market and offers a positive and optimistic outlook for homebuyers.
Kevin Martini | NMLS 143962 | Certified Mortgage Advisor | Martini Mortgage Group at Gold Star Mortgage Financial Group, Corporation | NMLS # 3446 | 507 N Blount St, Raleigh, NC 27604 | (919) 238-4934 | www.MartiniMortgageGroup.com | Kevin@MartiniMortgageGroup.com | Equal Housing Lender
-----------------------------
🌐 Martini Mortgage Group 🌐
➜ https://www.martinimortgagegroup.com/
------------------------------
📷 Instagram 📷
➜https://www.instagram.com/kevinmartin...
------------------------------
👤 Facebook 👤
➜https://www.facebook.com/KevinMartini...
------------------------------