Episode 73 - Market Trends 2024

In this episode of the "People Not Titles" podcast, host Steve Kaempf and senior marketing manager Matt Lombardi explore various facets of the real estate and mortgage markets. They discuss the NA settlement's impact on buyer brokerage compensation, the Department of Veterans Affairs' loan adjustments for military buyers, and the importance of shopping around for mortgage rates. The conversation also covers inflation, mortgage rate variations across states, and the rising costs of home ownership. Emphasizing professional guidance, they offer insights for navigating the evolving market and making informed financial decisions. The episode concludes with personal anecdotes and gratitude for listeners. 00:00 Introduction 01: 34 The NAR Settlement Discussion about the upcoming changes to the NAR settlement and its impact on real estate brokerages and agents. 04:46 VA Loan Adjustment Explanation of the adjustments made by the Department of Veterans Affairs to allow military homebuyers to use their loan benefits to pay buyer brokerage commissions. 08:41 Inflation and Mortgage Rates Analysis of inflation trends, the Fed's benchmark interest rates, and the impact on mortgage rates. 16:34 Variation of Mortgage Rates by Location  Explanation of how mortgage rates vary by location due to factors like supply and demand, competition, and credit scores. 19:48 Mortgage Closing Costs  Discussion of the Consumer Financial Protection Bureau's inquiry into junk fees in mortgage closing costs. 24:32 Underwater Mortgages Explanation of what an underwater mortgage is and comparison of the current situation to the "big short" era. 38:36 Home Sales and Prices Overview of existing home sales, median sales price, inventory, and days on market nationally and in the Chicago metro area. 33:58 Wisconsin Real Estate Market Analysis of closed sales, median sales price, inventory, and days on market in the state of Wisconsin. 34:41 New Home Construction Challenges  Discussion of how inflation and the regulatory environment are affecting home building and sales, and the impact on housing affordability. 38:06 Housing Affordability Estimation of the increased cost of home ownership and maintenance compared to 2020, excluding mortgage payments. 38:40 Maintenance Costs Discussion on the true costs of homeownership, including utility bills, insurance, and taxes. 39:55 Value of Homeownership Exploring the value of homeownership in terms of stability, community involvement, and building memories. 41:00 Home Equity Comparison of homeownership to a savings account, emphasizing the appreciation of home value and equity. 42:19 Joys and Challenges of Homeownership Anecdotal experience of dealing with maintenance issues and the overall benefits of homeownership. 43:26 Housing Affordability Analysis of the affordability gap, considering median income and the ability to afford homes in different locations. 47:07 Role of Real Estate Professionals Emphasizing the importance of having trusted advisors and professionals in real estate transactions. 48:36 Upcoming Events and Membership Promotion of upcoming real estate events and a nostalgic discussion about joining the "KISS Army" in 1977. 52:31 Conclusion and Patriotism Closing remarks on patriotism and gratitude towards military and veterans, followed by podcast sponsorship and call to action.