Hey everyone,
This month, we’ve got two major topics to dive into: What’s happening with interest rates… and what’s all the buzz about changes to commissions! Let’s get right into it!
Market Overview:
In the last 30 days, we’ve seen a slight increase in new listings compared to sold properties. While inventory is still outpacing demand, the market has balanced out, shifting from a heavy sellers’ market to a more even playing field. This means that while some inventory is sitting on the market, we haven’t seen home values decrease.
Interest Rates Update:
Interest rates are on the move, and the good news is they’re coming down. The Fed has indicated that they plan to start lowering interest rates in September, which has already influenced the market. Currently, rates have dropped to the lowest point in over 14 months, sitting around 6.5%. Looking ahead, we anticipate the Fed will lower rates by another quarter of a point in September, potentially bringing mortgage rates down further.
However, don’t expect a significant shift in inventory until interest rates drop closer to 4%. Many homeowners are locked into rates in the 2.5-3.5% range, making it less appealing for them to sell and take on a higher rate with a new mortgage.
Commission Structure Changes:
The biggest shake-up in the real estate world right now is the change in commission structures following a recent lawsuit settlement. Here’s what you need to know:
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No More Advertising Commissions on MLS:
Brokers can no longer advertise the seller’s property on the MLS with an offered commission. While sellers can still pay a broker fee if they bring in a buyer, this can no longer be advertised upfront. -
Buyer Broker Agreements:
All buyers will now need to sign a buyer broker agreement before viewing homes, specifying a compensation for their broker. This adds an extra layer of complexity, as buyers have typically never paid broker commissions in the past. However we expect that in most cases, buyers will rely on their realtors to negotiate with sellers to cover these fees.
These changes mean more paperwork and more negotiations for realtors, but we’re here to guide you through it. If you have any questions or need advice, don’t hesitate to reach out to me or anyone on the True Local team.
- If you are thinking about buying or selling we would love to help!
- Visit us at TrueLocalRealty.com
- Or give us a call at 888-503-3117
We have Top Realtors in: Oceanside, Carlsbad, Encinitas, La Jolla, Pacific Beach, Ocean Beach, Cardiff, San Diego, Vista, San Marcos, Escondido and more.