Navigating the waves of Real Estate: Emilio DiSpirito

Navigating the Waves of Real Estate: The Dance of Mortgage Rates and the Rising Tide of Competition

By Emilio DiSpirito, License Partner | Real Estate Advisor, Engel & Völkers East Greenwich and Engel & Völkers Barrington East Bay

In the intricate world of real estate, the ebb and flow of mortgage rates play a pivotal role in shaping consumer behavior. The recent rollercoaster ride in mortgage rates serves as a testament to the ever-changing dynamics of the market. What commenced as an era of historically low rates in the mid-2s and 4s from 2020 through 2022 abruptly transitioned to a starkly different landscape, reaching approximately 8.5% in 2023. Now, in 2024, we find ourselves amidst a market where rates have moderated to the high 5s and low 6s. For homeowners contemplating the sale of their properties, this fluctuation marks a pivotal moment.

One concept that resonates throughout this journey is the “asymmetric price elasticity of demand.” This phenomenon describes how consumers tend to be more responsive to price decreases than to increases. In the context of real estate, buyers, sensitized to the recent peaks in mortgage rates, are now more attuned to even the slightest decrease from the highs of 2023. What might seem like a significant increase from the lows of the mid-2s and 4s of 2020 through 2022 becomes a relative bargain in the eyes of potential buyers. As a result, homeowners previously hesitant to sell find themselves taking the plunge, adding valuable inventory to the market.

However, with this surge in new buyers entering the market, a different challenge emerges. The scenario is reminiscent of the competitive landscape witnessed in 2021, where buyers were waiving inspections, bidding against multiple competitors over asking prices, and facing appraisal gaps. This heightened competition is expected to drive prices up, potentially reaching levels that could strain affordability for first-time and entry-level buyers.

As we enter the spring real estate season, the interplay of these factors is set to define the landscape. Sellers, capitalizing on the current market dynamics, contribute to increased inventory. Simultaneously, the influx of eager buyers triggers a resurgence of the competitive environment seen in 2021, posing challenges for first-time and entry-level buyers.

In conclusion, while the dance of mortgage rates shapes the evolving story of real estate, the rising tide of competition introduces a new chapter. As we navigate this dynamic landscape, the delicate balance between supply, demand, and affordability for first-time and entry-level buyers will undoubtedly influence the experiences of both buyers and sellers in the months to come. The journey continues, and only time will reveal the twists and turns that lie ahead in the ever-shifting realm of real estate.

___

Emilio DiSpirito, Realtor and License Partner, Engel & Völkers East Greenwich and Engel & Völkers Barrington East Bay, 401-359-2338 – –[email protected]

To read more articles in RINewsToday by Emilio, go to: https://rinewstoday.com/emilio-dispirito/

Instagram: @EVRhodeIsland – Website: EastGreenwich.EVRealEstate.com

Emilio DiSpirito

If you would have asked me what I wanted to be growing up, little Emilio would have told you “an archeologist” or “an architect” despite the fact that at age 8 I had my first lemonade stand, landscaping business and was recording my first “news show” on my boombox!  Well, I never was much good at trigonometry and did could not see myself traveling for months and possibly years at a time, so becoming an architect or archaeologist clearly did not happen!

Fast forward 26 years later and I’m running a team of the finest residential real estate professionals, own a media company and host my very own radio news show about real estate!

For 7 years straight it seemed that I had put in more hours than the day had to give on my real estate business. 7 days a week, 14 to 16 hour days, without a break! Why? My friends and family did not understand the sheer magnitude of moving parts and services we offer to our clients during a transaction! One slip up or one missed call could mean make or break for someone’s dream home or even a lost deposit!

Running a team of like-minded, highly qualified and capable professionals has allowed me to offer a very streamlined, simplified and efficient approach to the sales process for our clients and allowed me to earn personal time again with my family while not missing a beat for my clients!

When I’m not working, I’m with family and friends, riding my mountain bike, eating at local restaurants, enjoying live entertainment, hiking, skiing or reading!