Weekly News (August 20, 2024)

Mortgage Interest Rates Review

United Mortgage Nation  8/20/2024

What to know about Real-Estate Commission Changes 

 부동산 중개비용네 대해 알아야 할 변화…

WSJ     8/15/24(Thu) 

• How does the system work right now and how is it changing?

     Two main changes are happening now: First, listings in local databases called multiple listing services will no longer show whether a seller is offering to pay a buyer’s agent, or how much. Second, buyers will be required to sign agreements specifying how much their agents will be paid. Buyers will do this before they start touring homes with agents.

• Is this going to bring home prices down?

     The rule changes don’t automatically mean that real-estate agents’ commissions will go down. That will be up to buyers and what fees they negotiate with their agents. If commissions do fall, buyers could benefit by paying lower home prices or sellers could benefit by keeping more profit, depending on how competitive and fast-moving the market is.

• I’m planning to buy a home soon. Do I need to use a real estate agent?

       No. Like home sellers, home buyers can choose to skip the agent and go at it alone, or use an attorney instead. Almost 90% of buyers used an agent in the year ended in June 2023, according to NAR.

• If I do want to use an agent, how much will that cost?

       You and your agent will agree on compensation upfront. Buyers’ agents today are usually paid a percentage of the sale price, often 2.5% or 3%.

• What if I want to just tour a home or go to an open house without committing to an agent?

The new rules require buyers to sign agreements with agents before touring homes. That agreement can be limited to just one home. But if you aren’t ready for that commitment, you can go to an open house without an agent. Open houses are hosted by the seller’s agent

• Do I have to pay my agent myself?

         No. As a buyer, you will be responsible for coming to an agreement with your agent about how much the agent will get paid. But you can always ask the seller to cover that cost so you don’t have to. If the seller says no, you can sweeten your offer by raising the price. You can also walk away.

• What if the seller is offering a different amount than what I have agreed to with my agent?

         You have a few options to consider. Let’s say you have agreed to pay your agent $10,000, but then you find a home to buy and the seller has offered to pay a buyer’s agent $20,000. In that case, it is up to the seller what to do with the extra money. You can ask the seller to give that extra money back to you, either by lowering the purchase price or by giving you a concession. Now let’s say you have agreed to pay your agent $10,000, but the seller is offering $5,000. You can still ask the seller to pay the full $10,000 when you make a bid to buy the home. You could also go back to your agent and try to renegotiate the fee.

Now let’s say you have agreed to pay your agent $10,000, but the seller is offering $5,000. You can still ask the seller to pay the full $10,000 when you make a bid to buy the home. You could also go back to your agent and try to renegotiate the fee.

• I’m planning to sell my home soon. Should I offer to pay the buyer’s agent?

  1)You can tell buyers’ agents upfront what you are planning to pay them. You can do this by offering to pay the buyer’s agent directly or by agreeing to pay both commissions to your agent to split with the buyer’s agent.  2)You can offer a concession that buyers can use to compensate their agents or for other expenses, such as repairs and closing costs.  3)You can offer nothing upfront. When buyers submit offers, they might ask you to compensate their agents.

• What happens if a buyer’s agent already agreed to get paid less?

          Your contract with your agent should specify whether you want to hold on to any surplus, or have it go to the buyer or to your agent.

• What happens if the buyer for my home doesn’t have an agent?

          Traditionally when a buyer didn’t have an agent, the seller’s representative often kept the commission offered to a buyer’s agent. But you should negotiate upfront with your agent what would happen in this scenario. Your agent may want additional compensation because it may be more work to close the deal. You should also discuss whether your agent can agree to represent both sides, though that isn’t allowed in some states.

• What do I do if I think my agent is breaking the rules?

          If you think your agent is breaking any of the rules explained above, you have a few options: You can find another agent. You can report the agent to your state’s real-estate commission, to a local Realtor association or to a multiple-listing service, which sets the rules for home listings. You can also speak to plaintiff attorneys involved in the settlements or consumer advocates.

Inflation  Lowest Level Since 2021

                인풀레이션 2% 대로 진입

WSJ  8/15/24(Thu) 

• Inflation fell below 3% for the first time since 2021, extending a run of cooler readings in July and sealing the case for the Federal Reserve to cut interest rates at its meeting next month.
• The consumer-price index rose 2.9% from a year earlier, the Labor Department said Wednesday, slightly below economists’ expectations of 3%. Core inflation, which excludes volatile food and energy items, was 3.2%, also a three-year low.
• But now, a rate cut is on track both because of better inflation readings and signs that the labor market might weaken undesirably in the months ahead. The unemployment rate rose to 4.3% in July from 3.7%

NAR names New CEO

      전국 부동산협회, 새 CEO 임명     

WSJ  8/20/24(Tue) 

• The National Association of Realtors named Nykia Wright as its permanent chief executive, the large trade organization said Monday.  Wright joined NAR as interim CEO in November to shepherd the organization through several crises.
• A Kansas City jury in October determined that the real estate industry conspired to keep fees artificially high and found NAR and real-estate brokerages liable for about $1.8 billion in damages. NAR’s then-CEO resigned after the verdict.
• At the time Wright joined the organization, the group was also reeling from sexual harassment allegations that had prompted its president to resign earlier in 2023. NAR currently has about 1.5 million members.

Nykia Wright

WSJ  8/20/24

Housing Starts Slid in July

   주택 시공, 7월에 감소세  

WSJ   8/17/24(Fri) 

• U.S. housing starts tumbled in July, suggesting a fragile demand for housing amid high mortgage rates.
• According to the Commerce Department’s report on Friday, housing starts, a measure of U.S. home construction, declined 6.8% in July to a seasonally adjusted 1.238 million, while the forecast was 1.35M.
• Starts were 16% lower than a year before. Also, June’s starts were revised down.
• Residential permits, which can hint at future home construction, fell by 4%. 

Falling Mortgage Rates Offer No Quick Fix for Home Buyers

 주택 이자률 감소로 빠른 회복은 기대 못해 

WSJ    8/16/24(Fri) 

• Mortgage rates in the U.S. are at the lowest level in more than a year. For millions of people, it will take a lot more than that to make homeownership affordable.
• Despite the recent drop, mortgage rates are unlikely to return to anywhere near the levels they were at before the Federal Reserve started to raise interest rates in early 2022. They might not move enough to make a huge difference soon, leaving home buyers to contend with record housing prices, limited inventory and renewed fears of a recession.
• There hasn’t been nearly enough homes for sale in recent years, which has kept prices around record levels. Supply has risen some recently, but it remains well below historic averages. Other costs of homeownership, from insurance to taxes to maintenance, have risen significantly in recent years.

Buyer Agents can do something

                바이어 에이전트로 할일이 찾아야…

WSJ  8/16/24(Fri) 

• The American dream of homeownership is getting further and further out of reach for first-time homebuyers, closing the door to generational wealth for families across the country. 
• Almost 80% of first-time homebuyers qualify for down payment assistance, but only 13% take advantage, said WSJ.
• Knowing what programs are available is just one of 111 things a buyer’s agent can help with ( Realtor.com’s Ad on WSJ).
• Research local and national down payment assistance programs available to the buyer. 

Stephen’s GA Trip Brief Report

Savannah, GA 출장 보고 

Stephen Lee    8/20/24(Tue) 

• Short trip : 8/15/2024(Thursday) through 8/18/2024(Sunday).
• Meet newly joined C Land agent: Daniel Kim who relocated from California and lives in Savannah Quarters, Pooler for about a year. 
• Helped buyer client who bought an investment house a year ago and is in the process of buying another house to live in, relocating from Alpine, NJ. (4 bed room house offered at $370K).  Helped showing plans for a client who is to open a restaurant in Savannah area. He owns a small chicken restaurant in Manhattan and another Korean restaurant in Queens, NY.
• Checked “KOREAN BBQ and Hot Pot” restaurant (Owner is Asian, not Korean): Booming Biz ( 6200 sf, $22,000/M) in Tanger Outlet mall in Pooler.