March 2019 Newsletter

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Impact of Volatile Financial Markets

Plummeting financial markets typically cause people to put the brakes on when it comes to discretionary real estate purchases. However, reactions may be different this time as the FED has intervened with aggressive interest rate adjustments to smooth out the otherwise potentially abrupt stop. Perhaps the record low mortgage rates seen on March 6 will do more than make our mortgage originators work around the clock with new refinance requests.

Watch this video from well respected economist, Marci Rossell, who gives her perspective on the current economic situation and how the housing market will be impacted.

Economic Impact of COVID-19 on the Real Estate Market

DOW Jones performance March 2019 – March 2020

The 30 year mortgage rates dropped to 3% on March 6^th – lower than even reported in 2012 when they dropped to 3.31%.

Mortgage Rates for 1 year from Freddie Mac

If someone is considering buying a property, this could mean the difference between buying the property they like and buying the one they love. For example: someone looking to buy a $300,000 winter getaway can now spend $340,000 and have the same payment they would have last year for a $300,000 property when the rates were 1% higher.
Example:
$300,000 home with a $240,000 mortgage at 4.25%= $1,181/ month
$340,000 home with a $272,000 mortgage at 3.25%= $1,184/ month

So is it possible that this extra purchasing power and savings on mortgage payments (via refinancing) may keep people buoyant during this volatile time? It is certainly something to ponder.
If you have thought about diversifying your portfolio, this may be a great time to consider increasing your investment in real estate.

Localized Market Stats

As can be seen from the chart above, the sales momentum from 2019 continued into the first quarter of 2020, though has started to show signs of slowing down this month as the financial markets plummet from the affects of the Corona Virus.
Property showings have slowed down over the past two weeks, which may impact seller’s motivation levels with the uncertainty that lies ahead.

Fresh Flavors at Fishville

Record visits have been witnessed at Fisherman’s Village this year – perhaps Trip Advisor’s 4.5 star rating by thousands has fueled the activity and perpetually full parking lot. Not only does this unique waterfront dining and shopping venue provide for a great place to take your friends, but it is an enjoyable place to watch the boats and birds come and go. This year, Fishville is getting a couple new restaurants including The Pier, which had a soft opening in February with rave reviews.
This shopping center revival of sorts is something being experienced nationwide, as many regional malls have discovered that great restaurants and recreational features can attract people in lieu of the disappearing department stores.
Click here to visit The Pier’s website.

Food Truck Plaza

We are anxious for the arrival of Harbor Social coming soon to the corner of Marion Ave and Sullivan St. This exciting new venue will offer a 3,600 sqft open air building that will feature a progressive food truck plaza with bar service, seating and restrooms.

Veterans Park

Our flourishing Veterans Park at the entrance to Laishley Park is nearing completion of Phase II of the project. If you have not yet visited the Veterans Park, we encourage you to take a look the next time you are in town. Stroll along the new paver walks and admire the inscribed granite wall in this serene setting.