Navigating the housing market

Welcome on into FOX 13 Unscripted, where I am hoping that we can bring some clarity to the housing market. What's happening with the housing market? If you are younger, maybe looking to buy your first home, should you buy now? Should you continue renting? We have Autumn Waters here. She is a Chase Community Home Lending Advisor, who's going to hopefully help answer so many of my questions, because the housing market's a scary place right now. How are you, Autumn? I'm doing well. Thank you so much for having me. I really appreciate this opportunity. We're happy to have you, because I'm sure you have seen, as the rest of us, how home prices during COVID skyrocketed. They've fallen a little bit. But for younger people who are looking to buy their first home, I'm sure you hear about it all the time. That's a scary thing. Yes. It can be scary. It can be unpredictable. Hopefully, today, we can demystify some of those thoughts to ask more younger people to start buying now. What are you seeing right now in the housing market? The interest rates are still fairly high. They've ticked down a little bit. Yes. They've come down a little bit. They've gone up a little bit. They're fluctuating some. But what we're starting to really see is houses are staying on the market a little bit longer than what they used to. Right now, we call that a buyer's market. You're seeing more customers that are able to negotiate to get the sale of the house down the price. They're also willing to negotiate paying for the customer's closing costs, because they want to get that house off the market. It's a great time to buy. We're seeing houses staying on the market for longer than 90 days in some instances. You really have to be strategic to get that house off the market. Yes. I was going to say, I remember during COVID, because that was when we bought our house, there was no negotiating happening. It was like, you take it or leave it. Absolutely. When people were paying way over asking, just because so many people were going into bidding wars. But that is not the case anymore. No, that's not the case. Also, I bought my home during COVID as well. The very beginning of it, interest rates were way down. I'm sure there's a group of the community that have that low interest rate, but it's not like that anymore. But the bidding war is over. Unless, of course, you're looking in that particular neighborhood that is very popular due to the school districts and things like that. But for the most part, that bidding war is done. Tell me about what you do on a day-to-day basis, because you're really there to be that support system for people. We are going to be speaking with a first-time home buyer coming up in just a little bit. I know you really helped this home buyer purchase their first home. What was that process like? Because I'm sure you see that a lot with first-time buyers. Absolutely. When I met him, I was at a local radio station and I was doing a home buying event for first-time home buyers who are business owners. I wanted to personally do one for entrepreneurs and business owners because their income looks different than a customer who's buying a house with a W-2. That's how we met. He gave me some of the concerns that he had and was making him pause at the moment. I told him, listen, if you stick with me, I will make sure that we'll get you into a home. We took it from the very beginning, step-by-step at his pace and educated him on what he needed to do. With the help of myself, with the help of his family, we were able to get him into a house. It was a great experience. Not only is he now a customer, I consider him a friend. I really like to see what he's doing afterwards with himself. It was an amazing experience for me. I love that. He's here and I can tell he's just so happy to be here and share that experience because you helped him out so much. Can we talk a little bit about what it looks like for home buying for Gen Z? It's a younger generation looking to buy their first home. What's the pitch that you give them to not be so discouraged? Hang in there. No, because home ownership is for everyone. Whether you are younger, whether you're older, home ownership is absolutely for everyone. You can do it. I think one of the biggest concerns is getting false information. Sometimes that can be done because social media is so heavy. A lot of Gen Z buyers tend to go to social media to ask questions, to research on down payment and credit score information. Sometimes it can be incorrect. Sometimes it can be right. What we urge you to do is to come see us, the professionals. Come schedule an appointment with me at Chase and I'll go over all of the information for you because there's a lot of Gen Z customers that are ready and they're walking around ready, but they don't realize it. So this is an interesting graphic here that we have just showing that, wow, single women are actually leading the charge in terms of home buying. That's really interesting. Are you seeing that? Yeah, I do see it a lot. Absolutely. Wow. Okay. That's really impressive. And then we're seeing a high single buyer rate. Okay. So 53% of the buyers are actually single buyers. And then when we look at Gen Z, like the share of home buyers that are Gen Z, what are you seeing there? Are you seeing more of that age group start to buy up homes? Is it seeming positive to you or you think they're going to stick with renting? No, absolutely. I'm seeing more Gen Z buyers, you know, have the courage to come in because homeownership is different, right? So for me to buy a house and our generation or back in the day, I can't even believe I'm saying that, but... No, don't say back in the day. Come on, we're millennials. Right? We're still, yeah. Team millennials. Yes, yes. But buying a house was, okay, I wanted a place to lay my head. This is where I was going to live forever. Today, buying a house can be an investment, right? So you have a lot of Gen Z buyers that are buying investment properties and they're renting them out. They're using them for Airbnbs to receive income. They're also getting them as vacation homes. Maybe they visit one part of the country a little bit more than the other while they're going to college, but they still want that investment. So homeownership does not necessarily look the same today as it did even 10, 20 years ago. So we're absolutely starting to see more college students come in and say, hey, listen, I'm going to college, but maybe they have a part-time job. And there's so many things that I can go into, but believe it or not, did you know that you can use your college degree as a history for income? So we can get into that a little bit later, but absolutely. So we're seeing a lot more younger people come in, do their application and get approved and buying something for the now, not the forever. I love that you bring up all of those interesting tidbits because you don't know what you don't know. And when you can sit with someone and learn these valuable facts, I mean, it could totally make a difference in someone's life. So let's say that I'm looking to buy my first home. What are the steps that people should do to prepare for making that? Because you can't just tomorrow say, I'm ready, take out a loan. There are steps that you need to take ahead of time. What are those? So the first step that I would say is definitely make a relationship with your banker. Get back to the basics of knowing who your banker is, knowing their name and talking with them about homeownership and your goals of what you're looking to do. Because a banker is like that middleman before you get to someone like me who is ready to help you and to actually take the application. They're going to talk to you about your budgeting and your savings. They're going to talk to you potentially about, you know, where you can look or, you know, what avenues to go down before you actually get to me. So I would say the very first thing is make sure that you have a relationship with your bank if you're choosing to use a bank like Chase. And, you know, we'll get you started with that. Another thing is that you want to start saving your money. I was going to say, like, what do you recommend for a down payment on a home? So we actually have a product where you could start as low as 3% down. A lot of first time homebuyers also do 3.5% down, but it doesn't necessarily mean that everybody is on that same page. We have some Gen Z buyers that want to put 20% down, they want to put 25% down, right? So it really depends on your own personal situation. And we really get to take the time to get to know that customer so that we can point them down the right avenue. So starting to save, what do you think the time frame is from when you decide, okay, I think I want to start looking for a home to when maybe you'll be ready to have that home? Does it take a couple weeks, a couple months to kind of get prepared? Yeah, I hate to keep saying, you know what, it depends on the customer. But it really does, because there's some customers that come to me get pre qualified, and they find a house on that weekend, because it is a buyer's market. And then you do have some customers that do need a little bit more handholding, they need to save more money, they need to get the credit score up. So I would say like if let's say we're in August, right? Yeah, three, I would say three to six months is a real comfortable amount of time to make that decision and really start looking at credit, looking at your debt, and saving your funds. And then lastly, what would you say about renting compared to owning, you know, because I think so many people stick with renting because you're not having to take out a huge loan and yeah, and a debt. What do you tell people when they're kind of on the fence between should I make the leap? Yeah, absolutely. So I think renting, I mean, most of us couldn't be here without renting. It's definitely a tool that you know, a lot of us need to just survive to start. Yeah, yeah. And I rented from the time I was 18 years old, all the way until I was 38. So that was, you know, 20 years of renting. Yeah. But if I could do it again, if I had someone that took the time to invest in me, like how I'm investing in my customers today, I would have done it in my 20s. Right? Because renting really should be short term. Because when you wake up and you're renewing that lease, you don't have anything to show for it. Yes, you're giving money to someone else. Exactly. You're giving money to someone else when you can be buying it into yourself. And when I when I talked to first time homebuyers to don't look at your first home is like this is going to be my forever home because you're it's probably not look for something that's convenient for you now. Look at something that's going to be safe, something that's going to be stable to help you get to that forever home. I love that. Because I do think people are looking for their dream home. And then they feel intimidated. No, you know, this is doesn't have to be your dream home. Just let's just start somewhere. Exactly. I could talk to you all day. We are gonna take a quick break. We gotta bring in our homebuyer. He's standing by. We're gonna bring him in in just a moment. Hear more about his story. But I'm not going anywhere. She's gonna stick around to stay with us. The home buying market can be a scary place, especially for new homebuyers. We have Philip Jackson here with us who actually just purchased his first home. Was it as scary as we think it could be? Actually, no. I mean, the process was pretty quick. Okay, so it can be done. I love it. So you when did you run into autumn? Because I know that she was a huge help in sort of navigating this process for you. Um, I ran into her through a little home homebuyers event. Yeah, yeah. Actually, to be honest, I wasn't even actually gonna go wise. But yeah, speaking with my mom, it was the perfect, I would say, timing in regards to myself wise, and I'm very blessed that I did go. Let me ask you just what your feelings were on purchasing a home upon meeting autumn, you know, because I'm sure you've been maybe thinking about it for a few years, maybe longer. And what were your thoughts at that point? What was it about buying a home that maybe was a little intimidating for you? I would say was kind of intimidating for myself was trying to find the right people to kind of help and assist because you can do all the research in the world and then you get into the process and everything is a little bit different, right? Through meeting someone I can say as a friend now autumn, she kind of took everything that I had within on my research and kind of furthered it to where I can now go out. I don't want to say by myself wise and future wise. But yeah, I would say go out there and actually know what I'm getting into and death. So when did you when did you actually purchase your home? Because you you're you did you say you were in Polk County? Yes. So my home is in Polk County or technically Eagle Lake, as you can say, but I purchased it last year in July. So now it'd be a year. How's it going? Are you having to fix anything yet? Are you having to replace anything? So a lot of things at home buying. So a lot of things that a lot of people kind of didn't really get into was what you have to do on the home kind of like changing up painting. Oh, yeah. Bring in everything I was labor of love. Labor of love is. Yeah. Understatement regards to it becomes your love because you put so much work into it. You put so much work into it. It's kind of like a child, you can say for yourself wise. But one thing I would say that I dislike to this day is cutting the grass. Oh, it grows really, really fast. You know, they make those robotic lawnmowers. Now I've seen actually was I was actually was thinking about buying it was but I think every two weeks when the grass grows is just so high. I feel like the robot would just die. I wouldn't be able to get to it. Hey, but you know what, I'm sure you can find some kids in the neighborhood who were looking to make 1020 bucks. I actually really thought about it. Yeah. They always kids these don't they don't really want to. They're not looking to earn a hard hard buck. So tell us tell us about what the process was like when you actually got into it. Because, you know, as you heard autumn and I sort of speaking about, I think it is kind of a hard leap for people to go from renting to home buying because it is kind of scary thinking about taking out a loan. And then being in a place and with the interest rates for you. How does Philip feel today? You know, being a homeowner? I mean, does that give you a sense of pride? makes me feel like, I don't want to say it gives me the pride that it's something of my own. But I don't want to be kind of, I think a lot of people would probably be too arrogant or kind of feel like they're above anyone else. That's kind of like running. So I just want to say I'm very blessed by God to be able to be. I want to say situation by being in this position that I am in to be able to buy not only my first home, but hopefully more to come in regards to that. Oh, that's awesome. What would you say to other people who are maybe on the fence about home buying? Because you you went through it. So I'm sure you have friends or colleagues who who ask you about the process. What's your advice to them? Um, don't do it. No, it's okay. I'm not I'm not trying to hide it from everybody. But I would say a lot of times I felt like the process was a little scary. I would be very impatient. I would find a home that I love. And then it's gone for me in regards to it. But yeah, just being able to trust the process and trust the timing that God does have on that. And it's more to it than just money aspect, I would say on that it was more to who I had behind me, which was autumn and also my realtor, Miss Chisa, who I actually met through autumn on that process and just being there supporting me and basically guiding me throughout the whole process throughout two or three months that it was you met autumn at an entrepreneurial event. And it sounds like you know, you're happy to have made this investment. What would you speak to in terms of this home being an investment for you and what that kind of means just for your future? You know, because autumn and I were talking about when you when you rent your your that money is going towards someone else whereas in your home, you're putting your money into your home, building equity. So actually, um, in regards to the building equity wise, it was just something that I can't even kind of lost the words in regards to it was but um, but it feels good. I imagine. It feels actually really great. Yeah, kind of having something of your own and not being able to like you said, give to someone else I can give to myself. Exactly. So what would you say in terms of how long it took Philip like from the from the moment that you decided I think I want to buy my first home to when you were able to put the key in the front door of where you live now? How long of a process was that for you? Six months a year. So the process before I met autumn was about six months kind of like looking around but I mean beforehand it could have been a little bit longer kind of always thinking about certain things always looking kind of driving by so I'm kind of like that wise in regards to it but once I did meet autumn got the pre approval started actually starting to process and we took about two to three months but like she said it always depends on the client how long how short it can be in regards to that and also like what you stated in regards to the key actually was kind of dropping the key having struggles trying to set things up and actually put into the door so it was it was a process it was kind of like you get you get the jitters a little bit in regards to it kind of handshaking like is this really mines and then that's awesome unlock and open what would your advice be to someone who's about to take this journey because like you were saying you got a little discouraged at times because you fell in love with the house and then it was gone you know speaking from personal experience it took four houses that we loved before we finally got one it is a process but it's worth it what would your it's worth it at the end yeah my advice would be to have a great people to be behind you and support you not only was it autumn also my that was behind me on that but also really close relatives like my father my mom my girlfriend in regards to it that was there to kind of support and help with it on this process but and also god of course yeah so um have you had the housewarming party yet he needs to have the housewarming party we're gonna get everyone everyone's a little bit far in regards to wise but i also kind of like for everyone that was close they've seen it so it's a we'll say a house stages it's been in stages but they've they've seen it we can say uh through photos and videos on that because everyone is a little bit farther but you're still you're still like accepting housewarming gifts if people would like to come and see the house i mean if they want to if they want to throw a little what were you just working on oh if you want to come by and mow the i don't know if they want to mow the lawn because i mean it's it is really a struggle and including with this heat nowadays it's it's your pride and joy pride and joy every saturday morning pride enjoy every saturday morning philip i can't thank you enough for coming in and sharing your story i think you're going to help a lot of uh young people who want to take that leap to buy their first home i hope so and i hope they find someone that can assist and help them just like autumn did we're going to see autumn in a little bit stay with us we are working to calm your fears if you are a first time home buyer because we know the market can be a little bit scary we've got autumn waters here she is a chase community home lending advisor we just met with philip who's so happy to be in his home but i think a lot of people still are very nervous and like you were saying earlier autumn there's a lot of misconceptions out there right so we want to debunk some of those misconceptions if we could pull up that graphic and just show what i'm sure so many of you are feeling and that first myth there okay so a lot of people have student debt is that a deal breaker autumn it's not a deal breaker at all actually like you know we're proud of our students that are coming to buy homes so absolutely it's not a deal breaker okay let's myth two i need to have 20 in order to put a down payment you do not need 20 like i said so and if you're a veteran zero that's incredible absolutely so you work around all these things so don't let these things stop you from buying your first home myth three interest rates are at an all-time high i feel like i'm that person because as soon as we started the segment i said interest rates are so high but historically they're not actually that they're actually not like i remember my parents telling me that when they bought their first home that the interest rates were like at 12 13 and i'm sure a lot of horrible i mean but listen they may do just like i'm sure a lot of you know our our parents and grandparents did so it's definitely not at an all-time high and look and if you buy and then you decide that you want to you know get that lower interest rate later you can absolutely you can refinance and you know go with the trend of the market absolutely so you're not stuck in that interest rate forever okay she's she's helping debunk all these myths let's let's do another one shall we okay myth number four i have to be married in order to buy a home or people probably think it it helps you a lot if you're married but really a lot of your home buyers are single absolutely just like philip i mean he is single and he bought his first home just like a lot of home buyers they are single you do not have to be married to purchase a house okay so that cannot stop you and the final one i must buy my forever home first we kind of chatted about this we did i think we all have these high hopes of falling in love with our forever home the first time absolutely no you've got it you've got a date you've got to go around the the housing market a little bit before you find the one listen i even had that high expectation like i you know you want the white picket fence you want the yard you want this you want the the tub and you know there's there's so many things that you want but you know the thing is that we have to help our home buyers be practical and realistic and not giving up the dream but get what you can afford today because guess what one day you'll be able to pull money from the equity and buy your next home so don't look for forever look for today oh i love that what would you say autumn uh just to people who are getting started they're they're they're interested like philip said they're driving around kind of looking but they maybe haven't taken the steps to be ready yet your your number one piece of advice for those folks is what yeah my number one piece of advice is to give the professionals the call give me a call let's have a conversation let's talk about your time frames what you're looking for the last thing that we want you to do is to get your research from someone or your information from someone that is not a professional that's not in the market today um and that is discouraging you um come to us and let's see what we can do to help you so that you can have the facts and and the state of the market right now real quick because i know we don't have too much time but um it's cooling off i mean you said you you've had you've houses that have been on the market for over 90 days that wasn't happening four years ago yeah no absolutely it is cooling off and the best time to always buy is now so you know let's have a conversation and let's see if this really is the right time for you if it's not then let's set up a goal and let's get you on the path to that right time autumn i can't thank you enough for taking the time to come out here uh and and hopefully giving new buyers the confidence that they need to take that step because like you were saying you're you're you're you're building equity yeah uh and and you can have that equity to buy your new home in five years down the road absolutely homeownership is absolutely for everyone autumn thank you so much thank you for being with us and good luck on your home buying experience if you're in the market have a good one