A Look Into The Markets: March 2024
March 13, 2024

A Look Into The Markets: March 2024

"You're only here for a short visit. Don't hurry, don't worry. And be sure to smell the flowers along the way." - Walter Hagen


Attending an open house can be a great way to learn more about a home if you know the right questions to ask. In this issue, we'll discuss some key questions to ask at an open house, along with the following topics:


What to Watch: The Fed, economic data, inflation, continued heavy Treasury debt and the housing sector are on the radar of market participants as well as the U.S. consumer.


Questions To Ask at an Open House: Discover some questions you should ask a seller at an open house.


Make Over Your Garden With These Tips: If your garden looks a little rundown after winter, follow these tips to make it vibrant once more.


Q&A: Is Earnest Money the Same as a Down Payment? Learn what earnest money is and what you should know before paying it.


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What to Watch


Treasury Debt and the Housing Market

The Fed, economic data, inflation, continued heavy Treasury debt and the housing sector are on the radar of market participants as well as the U.S. consumer.


The Fed. Back in January and early February the market was pricing in an almost 100% chance of a cut to the short-term Fed Funds Rate in March but that quickly receded to the point that now the first rate cut may come in June. Recent positive economic data and a reignition in inflation are the catalysts behind the reverse in sentiment. And where the inflation rate has dropped significantly from the highs seen in June of 2022, the Consumer Price Index in recent months has remained above the 3% level year-over-year.


The Economy. Weekly Initial Jobless Claims remain near historic lows while job growth was above a robust 300,000 mark in December and January. The recent national ISM Manufacturing Index and construction spending came in above expectations. Consumer Sentiment in February rose more than expected.


The Treasury. The elephant in the room and a big factor in the bond markets is the enormous Treasury debt offerings through notes, bills, and bonds to fund the government which are designed to minimize the cost of financing the national debt. Simply put, if there are more sellers than buyers, note and bond prices will fall and yields and rates will rise with the opposite being true. Speaking of debt, the U.S. national debt is at a record $34 trillion plus with household debt at a record $17.5 trillion.


The Housing Market. The recent Existing Home Sales report showed an uptick in housing inventory, says the National Association of REALTORS®. Redfin released findings that have listings rising 10% year-over-year during the four weeks ending February 18th, the biggest increase in two months. Sellers are hoping to take advantage of high prices: Sale prices are up 6% year-over-year, the biggest increase since October 2022.


Bottom line: You can take all the data and statistics but what it comes down to are two factors. Are potential home buyers in a sound job environment and are they able to afford the payments? The right opportunity is out there in the home-buying market but in the current state of the market, one must be a step ahead of the competition.


Source: Mortgage Market Guide

Housing News


Questions To Ask at an Open House


An open house allows you to explore a home and ask the listing agent some questions. If you're interested in making an offer, don't leave an open house without asking these questions.


How long has the home been up for sale? There are a few reasons a home might sit on the market for a while. The sellers may have priced it too high initially, or the home might have some issues. Either way, knowing how long a property has been on the market can allow you to reach a deal effectively. If the sellers have struggled to find a buyer, you may have more room to negotiate, resulting in a better deal.


How old are the appliances, roof, and utilities? An aging roof or a decades-old plumbing system can lead to major problems and expenses down the road. Ask this question to learn whether you might have to replace those systems during your ownership. In addition to the roof and plumbing, ask about the washer and dryer, stove, water heater, and HVAC unit.



What's the neighborhood like? This is a good question if you're moving from a different city or state. Ask about nearby amenities, such as trails or parks. You can also inquire about the school system and businesses in the area. After the open house, spend some time driving around the neighborhood to learn more about other homes, traffic, and noise levels.


By asking these questions, you can learn more about a home and the surrounding neighborhood. Write down what you want to ask before attending an open house so you don't forget.


Source: Homebuyer.com, Bankrate.com

Home Improvement


Make Over Your Garden With These Tips


Spring is in the air, and now is the time to start planning your garden. If your outdoor space could use some TLC, consider these tips.

Weeding. Nothing brings a garden down more than a bunch of pesky weeds. Spend some time pulling unwanted plants from your flower beds and yard. When weeding, pull from the roots so they don't grow back. To prevent regrowth, you can also create a border using bricks, blocks, or pavers.


Paint your fence. Even outdoors, paint can instantly transform a space. If you have a shabby or rundown fence, a new coat of paint can do wonders for your garden. Choose a traditional wood stain, or go bold with an unusual color, such as blue or pink. Consider matching the paint color to the flowers in your garden for a fun look.


Choose some new pots. After winter, some pots and planters in your garden might look a bit worse for wear. Purchase some new ones from a lawn and garden store. Choose containers in different textures, or add some variety with hanging pots. Don't want to spend much? Use items you might already have, such as pans, baskets, or even old boots.


Add a mirror. If you have a small garden, make it appear larger with a mirror. Hang a mirror from a nearby fence or shed, or place a standing mirror in the corner of your garden. If you don't want to have a mirror outside, consider adding some other glass features, such as wind chimes or mosaics.


Spending time in the garden can be good for the soul. Follow these tips to make your garden a place you can enjoy throughout the spring and summer.


Sources: Homesandgardens.com, Melaniejadedesign.com, Emagazine.com

Q&A


Is Earnest Money the Same as a Down Payment?


QUESTION: What is earnest money?



ANSWER: Earnest money is a deposit you make to show the seller you're serious about buying a home. Typically, a buyer makes this deposit before closing on a home. At closing, the earnest money goes toward their down payment. Essentially, earnest money is a deposit on a down payment.


In some cases, earnest money can be refundable. Usually, a buyer gets this deposit back if an inspection reveals previously undisclosed issues with the home. At this point, you can either choose to renegotiate the deal or back out, in which case you'll most likely get your earnest money back.


Some other contingencies can allow you to get your deposit back. For example, if an appraisal shows the home has a lower value than the purchase price, you can usually get a refund on your earnest money. However, if all the contingencies are met and you ultimately decide not to purchase the home, you'll probably lose this deposit.


The amount you can expect to pay in earnest money depends on the home you buy. Usually, this deposit ranges between 1% and 2% of the home's purchase price. On a $200,000 home, for example, you might pay $2,000 in earnest money. In competitive markets, you might consider paying more in earnest money to improve your offer.


When paying earnest money, it's essential to read the fine print and understand the contingencies. If you do this, you can feel confident making the deposit, as long as you're serious about buying the home.


Sources: Theinvestorsedge.com, Bankrate.com, Investopedia.com

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