Chris Salese

One of the great things about the Forth of July holiday is that it effectively serves as a half-way point for the calendar year.

For those of you who are looking to buy a home or for those of you who already own a home, this time of year provides a break to evaluate market conditions from the first six months of the year and recalibrate expectations for the last six months of the year.

In a way, this mid-year holiday celebration allows you the opportunity to make an adjustment in your mortgage plan or to simply further optimize the one you are successfully executing now.

For example, regarding the local real estate market, there seems to be only two major topics of conversation happening around town these days.

The first is surrounding the direction of interest rates and the second is, of course, about the lack of homes for sale.

If you are thinking of purchasing a home, it might be painful to watch the sideways trading pattern lately of long term interest rates and wonder what direction things will move next before you find a home.

With loan amount sizes needing to increase to keep up with higher property values, any sudden change in the interest rate market could impact your purchasing power.

In addition, the number of available homes for sale is certainly a problem as well.

Although there might be a “seasonal surge” during the year in terms of new listings that become available, the volume of recent seasonal surges has been declining, too.

This has required buyers to have more complex conversations with their lender and Realtor partners on different strategies to help navigate around these market conditions.

As a result, super aggressive terms and timeframes are essentially common negotiation points now between buyers and sellers.

Even if you are already a homeowner, you’re probably dealing with similar issues due to the reduced number of sales in your neighborhood.

It’s very challenging for an appraiser to subjectively determine the value of your home when there is a buyer for it, let alone when there is no buyer involved and a limited quantity of comparable properties to use for refinance evaluation purposes.

Not to mention, without an acceptable property appraisal, it’s difficult to pull cash out of your home.

Lastly, during times of tight market conditions, you need to be on guard for questionable tactics and behaviors between industry professionals.

When there is a smaller sandbox to play in, that typically might lead to activities that can be highly unethical and in certain scenarios perhaps illegal.

Unfortunately, many times these activities go unnoticed to the buyer or seller until it’s too late.

It’s sad that this still goes on, especially after all the rules and regulations that were put in place to help police this shameful behavior that was running rampant prior to the financial markets collapse 10 years ago.

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Chris Salese can be reached at chris@delsurmortgage.com or 707-363-4439. He is a licensed California mortgage lender (LO NMLS #254469 — CA-DBO #254469 Corp NMLS #1169 Equal Housing Lender.