Mortgage rate 6.38% | Med. list price $423,225 | Time on market 56 days | Active listings 1.05 million |
| Sources: Mortgage rates from Freddie Mac; housing data from Redfin. | - Mortgage rates shot up to 6.38% this week from 6.22% last week for a 30-year fixed-rate home loan, according to Freddie Mac. At this time last year, rates were at 6.65%.
- List prices rose 2% year over year to a median of $423,225 in the four weeks ending March 22, according to Redfin. But buyers haggled them down to $389,269, proof that sellers are willing to bend.
- Homes spent a median of 56 days on the market, six days longer than a year ago.
- Active listings fell 1.7% to 1.05 millionâthe sharpest drop since 2023.
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THE BIG STORY If youâre angling to sell your home for top dollar, circle late May on your calendar. Zillow found that, in most parts of the country, properties listed during the last two weeks of May sell for the highest pricesâabout 1.7% more or $6,000 on a typical home. Why? Because thatâs when buyers flood the market, bidding up prices. But that timing isnât one-size-fits-all: In San Jose, CA, the best window hits way earlier; the first two weeks of February are when sellers can score a 3.1% premium (about $53,800). Baltimore, meanwhile, peaks the latest, in the second half of June, when sellers can snag 2% more ($8,000). Still, chasing peak prices comes with trade-offs. For one, youâll face more competition from other sellers targeting the same buyers. Thatâs why Realtor.com urged sellers to list a bit earlier this year: April 12â18. This week boasts an ideal balance of 11.9% fewer properties than average, 16.7% more views per listing, a nine-day faster sales pace, and a 1.3% higher price (around $5,300). Broader market conditions are also improving, setting the stage for a busy spring. With mortgage rates now closer to 6%âdown from around 7% last yearâZillow expects home sales to rise 4.4% in 2026. Source: Zillow; Designer: Andre Blockett âIâm listing three weeks earlier than I did last spring, ahead of the wave,â says Florida real estate investor and agent Alexei Morgado. âLower rates got a lot of people back in the game.â Sellers are also ditching the old âaim high and adjust laterâ dance. âLast spring, I could test a higher price. Not this year,â says New Jerseyâbased investor Derek Lopez. âThereâs no time for aspirational pricing.â With more inventory and faster deals, heâs pricing âtighter from day oneâ and spending more upfront on repairs. âPreparation has supplanted patience as the new strategy,â he explains. As for what this means for buyers: Spring shoppers will likely pay a premium, so die-hard deal hunters may want to wait until October, traditionally the cheapest time to buy. Still, even in a competitive spring market, timing can work in your favor. âBuyers who wait until May will go up against a wave of competition,â Lopez says. âAs a buyer, Iâm starting sooner, too.â | | |
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From The Crew Youâre already reading the newsletter, but did you know you can also listen to and/or watch the wittiest and smartest takes on business news? Morning Brew Daily hosts Neal Freyman and Toby Howell have you covered on everything you need to know before your cup of coffee, from the latest headlines on the economy to explanations of viral TikTok trends. Youâll look so smart in front of your friends. New episodes are released every weekday at 7am ET. Check âem out on YouTube or wherever you get your podcasts. |
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WHAT'S UP THIS WEEK This overlooked type of home can be purchased for a mere $141,450âand prices are still falling. Real estate surfing just got an upgrade with Zillow AI mode, which allows you to skip the filters and just ask: âFind affordable Miami pool houses with open houses this Saturday.â It can also book tours, pull comps, and suggest what to offer. This new kind of mortgage is helping buyers afford homes in a high-rate world amid economic uncertainty. Sellers now outnumber buyers by about 46%âthe widest gap in over a decade. This single word in your listing could boost your sale price by 3.2%. These properties are trading 30% below what theyâre worth. Why? Blame it on politics. Home flippers saw the lowest returns since the Great Recession. Find out how much they made, and whether things are looking up. That 30-pack of paper towels may seem like a good idea, but hereâs why one professional organizer says we should just stop. One Florida man bypassed Realtors and used ChatGPT to sell his home for $100,000 more than agents thought it was worth. Hereâs how he did it.
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REAL TALK Train travel had its heyday a century ago. Since then, plenty of stations have been left behind. In Maine, one depot found a particularly fitting reinvention: It became a cannabis shop. Now, itâs on the market for $975,000. But the real story isnât just what it sells: Itâs what comes with it. Listing agent Anna Boucher explains. Q: Whatâs this stationâs story? âIt was built in 1911 and served as Gardinerâs train station for decades until it became obsolete. Ken Tuttle, who had been revitalizing downtown Gardiner, had an opportunity to purchase the station and couldnât pass it up. Itâs one of those properties that stops you in your tracks. He recognized what it meant not just architecturally, but for the downtown as a whole.â Q: What does this property serve as today? âThe building is leased to a cannabis dispensary, HighNorth Mystique. Theyâve done a nice job bringing in steady traffic downtown. Recreational cannabis has been legal in Maine since 2016, with retail sales starting in 2020. This isnât the only dispensary in the area, but itâs definitely one of the most visible.â Q: What are this propertyâs high points, so to speak, as an investment? âCurrent rent is $5,200 per month with annual increases on a triple net lease. The seller is open to owner financing, in which the seller carries the note, which is more flexible than traditional bank financing. Plus, one underrated part of the property is a lower parcel along the Kennebec River thatâs just sitting there as an old parking area. Itâs one of those âfuture valueâ pieces that isnât fully realized yet to create outdoor space or explore recreational or boat access.â Q: What advice would you have for the buyer? âUnderstand both sides of this property: the income side and the future opportunity side. Youâve got a historic structure in a walkable downtown, a tenant in place covering expenses, and additional upside with the waterfront. It checks a lot of boxes for someone looking for a blend of stability and long-term potential. You can feel the history in it, but itâs not stuck in the past. Those are the types of properties that hold value over time.â Click here to see more photos of this listing, and scroll down to learn the surprising perks of this propertyâs triple-net lease (and why you might want one, too). Summit Real Estate | | |
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YOU ASKED, WE ANSWERED A triple-net lease, or NNN, is a contract for commercial property (like the train station-turnedâcannabis store above) in which, in addition to paying rent, the tenant covers three main expenses, or ânetsâ: property taxes, insurance, and maintenance/repairs. That leaves landlords responsible for just the mortgage. âFrom an ownership standpoint, itâs about as passive as it gets,â explains Maine real estate agent Anna Boucher. âYouâre collecting rent without worrying about day-to-day expenses or surprise costs.â Tenants willing to shoulder a triple-net lease donât take on the extra costs for nothing. In exchange, they typically pay lower rent and gain more control over the property. âThey can operate the space more like itâs their own,â Boucher adds. Another advantage? Stability. Triple-net leases also tend to last longer than residential contractsâas long as 10 to 15 years with rent escalations. While this sounds pretty sweet, the success of this arrangement hinges heavily on your tenant, so youâll want to do your due diligence and make sure theyâre solid. Learn more about the pros and cons of triple-net leases and owning commercial property. Got a question about real estate? Ask it here, and weâll answer it in a future issue. |
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HOUSING MARKET OF THE WEEK Rockford, IL, has had a rocky past, and the cityâs mayor is the first to admit it. According to Tom McNamara, âIt wasnât that long ago we were known as the underwater mortgage capital of the USâ and âthe most miserable community to live in.â Since then, though, Rockfordâs affordability has transformed it into one of the hottest markets in the nation. Check out just how far the city has come. Average home price: $172,610 (up 9.5% YoY) Homes that sell over list price: 42.9% Homes that sell under list price: 40.0% Average rent: $1,151/month The pros: âRockford offers some of the most accessible entry points in the Midwest, well below both Illinois and national medians,â says Conor Brown of the NorthWest Illinois Alliance of Realtors. âThat low buy-in creates strong cash flow potential from day one.â As a result, âInvestor interest has been growing from Chicagoland, drawn by easy transportation and commute access.â The cons: Although home prices here are up nearly 10% since this time last year, âhistorically, appreciation has been weak,â he says. âWealth-building here leans more on cash flow than equity growth, though that dynamic is shifting.â His advice: âLook for value-add opportunities: The spread between purchase prices and âafter repair valuesâ is one of Rockfordâs biggest advantages,â Brown says. âInvestors who can renovate efficiently outperform. Case in point: Local investor Bobby Walsh recently bought a property for $40,000, poured $130k into renovations, and soon got the house under contract for $239,900âproof that investors who can flip quickly stand to make a ton of cash. Hereâs more on how to pull off a fast flip. Got a home or housing market you want to highlight in The Playbook? Tell us more about it here, and weâll consider featuring it in an upcoming issue. | | |
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