A former real estate reality star is warning prospective home buyers about the current state of the housing market, saying that they should hold off on buying their dream home for now.
“Because rates are so high or higher in general, people are trying to add all of the bells and whistles into their purchase, naturally, because they want to roll it all in. They want to come out of pocket too much,” said Sam DeBianchi, a former “Million Dollar Listing Miami” realtor during an appearance on “Mornings with Maria” Monday.
“I think, as a buyer, you need to maybe put your expectations [aside],” she continued, “Don’t buy the American dream home right now. But, think about that American dream home in the future.”
Last week, the average mortgage interest rate for a 30-year, fixed-rate mortgage rose to 6.77%. The week prior it sat at 6.64% and a year ago, 30-year mortgages averaged even lower at 6.32%.
Additionally, the average interest rate for 15-year mortgages rose to 6.12% last week. Credible reported that as the economy continues to stay strong, it’s unlikely that mortgage rates will drop substantially anytime soon.
In addition, DeBianchi argued that the hottest housing markets in 2024, which include places like Buffalo, New York; Cincinnati, Columbus and Cleveland, Ohio; Atlanta, Georgia; and Orlando and Tampa, Florida, will see even higher interest rates.
In cities on the list, the real estate expert further advised: “Buy maybe your second home first. Buy the property that, later on, if you can’t make a big killing when you sell it, maybe you can hold on and you could rent it out and it will cash flow… I like investigating the Airbnb markets, because if it’s popular on a short-term basis, it’s generally popular also on an annual basis. And if it’s popular on both of those bases, it can also sell for that much more of a premium.”
“You have to break crumbs at the table and really understand what is your seller wanting to do and learn the mindset of the seller,” DeBianchi added. “Is it a matter of [if] they’re trying to move out of state? Are they more motivated because they want a bigger home and try to work with the emotions of the seller? Buying and selling real estate is all about strategy.”
DeBianchi also acknowledged that people may seek to move into those popular housing markets, due to their stable economies, strong job growth and rising home values.
“It’s a great opportunity for people if they’re looking to relocate, if they already live there, or if you’re also looking as an investment, these could be great places to investigate,” she said.
In spite of market volatility and uncertain rates, DeBianchi encouraged people hoping to complete a transaction in 2024 to stay “creative.”
“Seller financing is something that buyers should really go out and try to obtain, especially if they have enough money, but they can’t show enough money. And I’m seeing that more and more often, and I’m seeing a lot more sellers flexible and open to the creativity of providing seller financing.”
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