Northeast Ohio
Real Estate
July 15. 2022
Happy Friday!
Thank you for checking out my update. I hope you enjoy the upcoming gorgeous weekend!

Go Guardians!
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Homebuyers retaking the upper hand?

Nearly 15% of pending home sales failed to close in June, a new post-pandemic high according to an analysis of MLS data.
Why it matters: This is a sign of how fast the housing market adjusted to the surge in mortgage rates that started in March — and it signals the beginning of a return to sanity from the boom, with the balance of power shifting back to homebuyers. Prices are likely to cool somewhat.
  • Sharp rate increases didn't just pump the brakes on the housing market, they drove it into a wall, Expect the number of cancellations to come down as sellers adjust pricing to the new reality.
Zoom out: Typically, the majority of homebuyers enter into pending sales agreements with a contingency that allows them to back out of the deal if, say, the inspection comes back with issues, or something is off in the appraisal.
  • When the market was booming just a few months ago, a lot of buyers were waiving those contingencies. Those days are pretty much over — likely a cause for some of the uptick in cancellations.
14.9% national rate is perhaps even more striking because overall pending home sales fell in June — so we're looking at a bigger percentage of a smaller universe. Meanwhile, other deals have failed because fast-moving mortgage rates mean the buyers can no longer afford the home they wanted — they either didn't lock in their rate when they went into contract or their rate lock expired.

The story is indicative that buyers have more options, more contingencies, and the market nationwide, as well as here in Greater Cleveland has changed.
Drop in Mortgage Rates Brings Good News for Buyers (And Sellers!)
Over the past few weeks, the average 30-year fixed mortgage rate from Freddie Mac fell by half a percent. The drop happened over concerns about a potential recession. And since mortgage rates have risen dramatically this year, homebuyers across the country should see this decline as welcome news.

According to Freddie Mac, the 30-year fixed mortgage rate dropped sharply by 40 basis points to 5.3 percent. . . . As a result, home buying is about 5 percent more affordable than a week ago. This translates to about $100 less every month on a mortgage payment.

If you have questions about buying, or financing your new home, please don't hesitate to reach out. I was a loan officer for years, and have partnered with some of the top lenders in Ohio who have excellent programs for all my clients. They have a solution for any circumstances.

The chart below shows how a half-point, or even a quarter-point, change in mortgage rates can impact your monthly payment:
Check out my new listing!

1265 Beach Ave, Lakewood, OH 44107
Meticulously maintained duplex in a highly desirable Lakewood neighborhood. A rare opportunity, as this beautiful colonial has been expertly cared for by the same owner for over 40 years. Ideal location near all the best of Lakewood has to offer. A roomy open porch is perfect for enjoying the well-kept front yard landscaping. The upper unit boasts a large deck, perfect for relaxing or entertaining. The interior includes quality built-ins, multiple large living spaces, a finished third floor, and much more. This two-unit is a gem and will go quickly!

Click for the listing---> LINK
Pat Barmann
216.990.5719