Pending sales jumped 8.3% in December from the previous month, marking the largest gain since June 2020.   Mortgage rates have dropped significantly from their peak last fall, and homebuyers are beginning to come out of the woodwork, with NAR forecasting a 13% increase in existing-home sales this year compared to 2023. In the Chattanooga area new listing and the inventory of homes for sale are both up.  You should have more buying opportunities this year.  The median home sales price in Chattanooga increased by 10.4%.  If you are waiting for home prices to go down, tha ..read more

In 2024 the Walldorfs will have some great new homes coming on the market that we are excited to sell in North Chattanooga, in Riverview, and on Lookout Mountain. 2024 will be the year of lower interest rates.  The 8% interest rate in October/November is behind us. In 2024, we should have rates between 6.5% to 6%. Home buyers and sellers will enter the market with more force this year.  As rates go down, home sellers will be more interested in selling and home buyers will be more interested in buying,  It will be more affordable for both buyers and sellers to buy homes.  Fo ..read more

Tips on How to Clean up After a Snow Storm I was showing homes after a snow storm and most of the home sellers had not even cleared the walkway to the door, so here are tips on cleaning up your home after a snow storm (especially if you are selling a house). 1. Wait for the Snow to Stop: Ensure that the snowfall has ceased before you start cleaning up. 2. Clear Pathways: Begin by clearing pathways and sidewalks. Use a snow shovel to remove the snow, making sure to create a safe and accessible path. 3. Remove Snow from Driveways and Parking Areas: If you have a driveway or parking area, clear i ..read more

The MBS Highway National Housing Index was up in December from a November low.  The improvement was driven by a 7 point rebound in home buyer activity.   The 1% drop in 30 year mortgage rates in the last six weeks brought some buyers back into the market.  In late October/early November, I did not know what I would be selling in December in the Chattanooga area, but I will end December selling 3 properties.  I am very thankful that interest rates have declined over the past 6 weeks.  The inventory of homes for sale is still tight, so home prices are not going down.&nbs ..read more

A past clients asked me about the National Association of Realtors (NAR) loosing a lawsuit over conspiring to keep commission costs artificially high.  The case said that NAR rules and corporate practices lead to set pricing.  The crazy thing is that NAR internally in their conferences and meetings never talks about a set commission amount.  That would be a violation of anti-trust, so Realtors, as a policy, don’t talk about that in their conferences and classes.   When you list a home for sale, the documentation gives a total commission to be paid, and then says that 1/2 of ..read more

Home buyers frighten easily in today's real estate market, a tale of three contracts. As a home seller, you need to understand the environment that home buyers are in.  Home buyers are watching the Federal Reserve continually raise interest rates, and they are watching Israel and Ukraine at war.  They are a bit uneasy, so you need to think first before you make aggressive counter offers to potential buyers of your property.  It is not 2021 any more.  Here is what happened to my last 2 contracts I wrote and to a friend's contract recently.   Contract 1: After I gave my ..read more

What’s Happening with Interest Rates? I have good news concerning future interest rates.  After the last federal reserve meeting, the Fed announced that they would probably do one more rate hike before the end of the year.  The residential mortgage interest rates responded by raising right after that announcement.  Reuters reported on Monday that, “top ranking Federal Reserve officials indicated..that rising yield on long-term US Treasury bonds..could steer the Fed from further increases.”  That means that the mortgage market raised interest rates on its own, so they do no ..read more

Is knob and tube wiring dangerous? Knob and tube wiring is an older electrical wiring system that was commonly used in homes in the United States and Canada from the late 19th century through the early 20th century. While it can still be found in some older homes, it is generally considered outdated and less safe compared to modern wiring systems like Romex. Here are some key considerations regarding knob and tube wiring:     1    Aging and Deterioration: Knob and tube wiring is quite old, and the insulation on these wires can deteriorate over time. This can lead ..read more

5 Real Estate Transactions Impacted by a Government Shutdown 1. FHA will not make commit to new loans in the Multi-family Program during the shutdown. There may be some delays with FHA processing.   2. Fannie Mae and Freddie Mac are not reliant on appropriated federal fund and should operate normally.  BUT…Fannie Mae and Freddie Mac may have a hard time getting social security numbers verified and getting a tax return transcripts.  Both are needed to process a loan. 3. Rural housing loans will not be issued during the government shutdown.  That is a 100% rural development ..read more

Here are the common questions that home buyers ask in 2023: How Do I Afford a Home? Many homebuyers are concerned about rising home prices and whether they could afford to buy a home in their desired location. Low housing affordability can be a significant barrier to homeownership.  As interest rates go down in the next year or so, home prices and competition will go up quickly. Should I Buy a Home When Mortgage Rates Go Down? Interest rates on mortgages are a concern. Homebuyers typically watch interest rates closely, because they can significantly impact the cost of borrowing and m ..read more