We sat down with the “Mortgage Guy with the Bow Tie”, Rick Riddle to get his take on the spring market. Here is an excerpt from the interview:
RHF: So what do you see going on in the real estate market?
Rick Riddle: After an unusual slow start to the year, we are starting to see increased activity, specifically in open houses.
RHF: What do you attribute the slow start to?
Rick Riddle: For starters, the weather. We had one of the worst winters in the north east. It was bitter cold and the snow would knock us out for days. In February for example, we had like 11 working days. Not only does the weather keep potential buyers from getting out and looking, it makes it very tough for new inventory to come on.
RHF: What is your take on the Spring Market?
Rick Riddle: It looks like in the North East we are about 6 weeks behind. If you look at other warmer client markets like Florida, you see that real estate is in full recovery. As soon as the grass turns green, the market will be in full bloom
RHF: Is it a buyers market or a sellers market?
Rick Riddle: That’s a great question. I would say a little bit of both. There is no question that NOW is the time to buy. Rates will be higher next Spring and I expect prices will too. We are starting to see expanded mortgage programs which will allow more buyers to qualify.
That being said, Inventory is low. For the last couple of years we saw 3 houses for 1 buyer, but now it is 3 buyers for every house. Going back many years to me Econ 101 class in college; When the supply can’t meet buyer demand, prices will rise resulting in a Seller’s market.
RHF: Is there one particular market that is stronger than another?
Rick Riddle: Since 2011, we have seen the number of units sold in the north east go up, but the average sales price hasn’t. I attribute that to the fact that people sold because they had to, not because they wanted to. People were selling homes short because they couldn’t afford the mortgage payments. The first time buyer market the last couple of years was very strong. I see that changing. More people will be able to sell with equity because of the high demand/low supply which will result in more move up buyers.
RHF: What advice to you give to people on the sidelines?
Rick Riddle: Call a Realtor Today! Find out what your home is worth today. You may be pleasantly surprised. Then call a mortgage professional at RHF to see what you can qualify for. It is going to be a once in a lifetime opportunity to buy your DREAM Home.
Affectionately known as the “Mortgage Guy with the Bow Tie”, Rick Riddle, Director of Sales at Residential Home Funding, brings extensive knowledge, extreme passion, exceptional customer service, as well as, a sense of humor to the real estate and mortgage industry.