Different Statuses For Homes On The Market And What They Mean
When a home is on the Multiple Listing Service (MLS) listed for sale there are different statuses that are reported on the home. Those statuses help home buyers to know whether a home has accepted an offer, been sold, been removed from the market and even if the home has come back to the market after accepting an offer. Most MLS systems have similar statuses for real estate listed for sale in their market. This article looks at the different statuses and what each means.
Timing Of Status Changes
Generally any time the status of a home changes the change on the MLS must be made by some human input. A real estate agent who is listing the property is responsible for changing the status. Many MLS organizations require that the agents make their changes within a certain amount of time on the MLS after the status is updated in the real world. That means if an offer has been accepted by the seller the listing agent should be making that change in status sooner rather than later. By making the change sooner buyers can take that home off their list and look for other homes and save the time of buyers and sellers alike. Often, after accepting an offer home sellers want to stop the showings from happening in order to minimize the disruption it can cause.
One of the most common statuses on a home listed for sale is the active status. The active status means the home is on the market and still taking offers. As...
How Will Higher Interest Rates Impact Real Estate?
With inflation reaching forty-year highs the Federal Reserve (Fed) has started increasing the federal funds rate as part of an attempt to control inflation. As interest rates rise that does affect the cost of things like mortgages (both residential and commercial), credit card rates, auto loan rates and more. The thought process is that higher rates will soak up some of the excess money that is out there which is causing inflation to go up. This article looks at how buyers of commercial and residential real estate will be impacted by higher interest rates.
When it comes to the individual homeowner with a fixed 30-year mortgage they will not see any difference in the payment of the principal and interest portion of the payment since their interest rate is fixed for the entire term of the loan. The mortgage payment can change with a 30 year fixed interest rate mortgage through taxes and/or insurance going up. If the homeowner decides to refinance their mortgage they could see an increase in the amount of their mortgage payment if the new interest rate is higher than the old interest rate or they also take some cash out the home’s equity thus increasing the loan amount. In the US adjustable-rate mortgages (ARM) for homes are not very common as compared to the past where more home buyers had the option of buying a home with an ARM.
Mortgage rates have bumped up quite a bit and the average mortgage rate as of writing this update is 5%. Mortgage applications and refinance applications have slowed down as a result. Inventory in the luxury market remains unchanged from last month but the median price is down a bit along with the days on market. As interest rates remain higher than a few months ago and even increase further compared to today's rate more buyers will pause their goal of buying a home or start to shop for homes priced at a lower point.