Category Archives: Real Estate (Market info)

Mortgage rates stayed below 7% for the second week in a row.

The 30-year, fixed mortgage rate averaged 6.67% for the week ending Dec. 21, according to Freddie Mac‘s Primary Mortgage Market Survey. That’s down from last week’s 6.95% and up from 6.27% the same week a year ago. Meanwhile, HousingWire’s Mortgage Rates Center showed Optimal Blue’s average 30-year fixed rate on conventional loans at 6.68% on Thursday. 

“Lower rates are bringing potential homebuyers who were previously waiting on the sidelines back into the market and builders already are starting to feel the positive effects,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “A rise in homebuilder confidence, followed by new home construction reaching its highest level since May, signals a response to meet heightened demand as current inventory remains low.”

Lower rates will have a positive impact on affordability, Lisa Sturtevant, chief economist at Bright MLS, said in a statement. Bright MLS forecasts the average on a fixed-rate mortgage rate to fall to 6.5% by mid-year and to decline further to 6.2% by the end of next year. With a rate of 6.2%, the typical monthly payment on a loan for a $400,000 home would be about $2,700, down from $3,000 with a 7.5% rate.

Locally, we have seen rates as low as 6.625% PAR for top tier borrowers on a 30 year loan and properly qualified borrowers could buy down to 5.99% for less than 2 points.  To put this in perspective, 45 days ago mortgage rates were sitting at roughly 8% for top tier borrowers, on a 500k mortgage this equates to $467/mo lower payments now compared to 45 days ago.

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Zillow reports that over the next 20 years, more than a quarter (27.4 percent) of the nation’s currently owner-occupied homes are likely to hit the market as their current owners pass away or otherwise vacate their homes.

Places likely to be most impacted by this upcoming Silver Tsunami include both retirement hubs (Miami, Orlando, Tampa and Tucson) and regions where young residents have left (Cleveland, Dayton, Knoxville and Pittsburgh). The impact of the Silver Tsunami is also likely to vary greatly across different areas within metros.

• Housing released by the Silver Tsunami will provide a substantial and sustained boost to housing supply, comparable in magnitude to the fluctuations that new home construction experienced in the 2000s boom-bust cycle.
• It seems likely that, in the coming two decades, the construction industry will need to place a greater focus on updating existing properties, in addition to simply building new homes.

The massive Baby Boomer generation has already begun aging into retirement, and will begin passing away in large numbers in coming decades – releasing a flood of currently owner-occupied homes that could hit the market. That could help end the last few years’ inventory drought, as well as a more fundamental shortage of homes in certain places.

This Silver Tsunami of homes coming to market could be a good substitute for new home construction, which has been in short supply for the past decade in large part because of difficult-to-overcome challenges faced by builders.

Currently, 33.9 percent of owner-occupied U.S. homes are owned by residents aged 60 or older, and 55.2 percent by residents aged 50 or older. As these households age and begin vacating housing, that could represent upwards of 20 million homes hitting the market through the mid-2030s.

But while virtually all areas will feel the effects to some degree, this wave won’t hit all at once and won’t strike all markets equally. Certain markets will be more impacted than others, as will certain kinds of areas within a given market.

 Nexton, the most innovative and walkable community in South Carolina, received the Grand Aurora Award in the category “Residential Housing Community of the Year – Masterplan,” at the 2023 Southeast Building Conference. The conference was held on July 21 at the Rosen Centre Hotel in Orlando, Fla.

This award is a testament to Nexton’s dedication to providing residents with environments that allow them to inspire, connect and thrive, and we are incredibly proud to be recognized,” says Cassie Cataline, marketing director at Nexton. “As a lifestyle-driven destination, we strive to blend thoughtful design, innovative technology and modern conveniences to attract numerous homebuyers, renters, businesses and visitors each year.”

Established by the Florida Home Builders Association in 1979, the Aurora Awards recognize outstanding projects from across the Southeast during the annual Southeast Building Conference Featuring 60 categories, the Aurora Awards encompass all facets of the residential, commercial and remodeling industries.

A jury of four acclaimed designers and builders met in May 2023 to select winning projects from a competition of nearly 400 entries. The Grand Award is the highest award an entry can receive in each category.

Celebrating the 10th anniversary of the community’s 2013 groundbreaking, Nexton is a lifestyle-driven destination that artfully blends the best of live, work and play by offering conveniences such as state-of-the-art schools, modern infrastructure, 20 miles of trails and 2,000 acres of green space. The community’s four residential neighborhoods include apartments, built-for-rent homes, townhomes and a variety of for-sale single-family homes that cater to first-time buyers, executives and 55+ retirees. Nexton has currently sold over 2,600 homes.

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