A quick update for the summer real estate sales market, which is slightly slower, but prices remain resilient with a few areas experiencing slight declines. We feel many of the price reductions are due to overly aggressive listing prices compared to current comparables. After no movement, reality eventually sets in and the price is reduced.
We feel the market is taking a pause, waiting for interest rates to drift lower, encouraged by Fed-speak and the upcoming election. When rates retrace into the high 5% area, we feel this will open the market quite a bit at all price points. Current mortgage rates have been stagnant in the mid-6% range for some time. We have seen a slight reduction with alternative-qualifying (Non-QM) products, which give tremendous flexibility to self-employed borrowers rather than traditional tax-return qualifying.
Important concept: our 2nd-TD reverse mortgage product allows the property owner to retain their low-interest first mortgage and obtain a reverse mortgage with cash-out for liquidity. Payments are not made on this loan; interest accrues to the balance. It is an excellent vehicle for borrowers considering selling within a three-to-five-year time frame, with no prepayment penalty.
In the commercial / apartment loan space, we have some aggressively priced lenders, but underwriting is extremely rigid across the board, with escrows usually 45 to 60 days. If you have an adjustable commercial or apartment loan that is rolling to market or maturing, give yourself 90 days before any maturity or adjustment to obtain a new loan. Our pre-approval and approval letters are well received in the industry, and our clients frequently prevail based on our established name.
We welcome your contact anytime. From all of us at Centek, have an enjoyable summer. Stay tuned!