Navigating the Realities of Today’s Real Estate Market
In times of economic uncertainty, it is important to know how to navigate the real estate market to protect your investments and financially plan for your family. This week on FEDtalk, we break down the state of the market and the economy, key considerations for relocating, and tips for making better homebuying decisions. Joining host Jason Briefel this week on FEDtalk is Joe Vultaggio and Gavin Luckman from Cardinal Financial and Amber Tucker from BGRS.
Cardinal Financial is a nationwide financial company that assists homebuyers with purchasing a mortgage, refinancing, and home loans. Cardinal also provides education services to home buyers whether you are purchasing your first home or looking into additional investments. Cardinal recently launched a public service program providing specialized services and rates to those working in the public sector. Luckman and Vultaggio serve as Branch Managers with the company.
Despite inflation rising over 7 percent and ongoing discussion of fears of an economic recession, “this is not the same real estate market as 2007 and 2008,” according to Vultaggio. “The fundamentals in the market are sound today…we are not facing a bubble burst.”
Low interest rates in recent years drove up residential and commercial real estate prices dramatically. Rising interest rates will put downward pressure on costs, Luckman noted, increasing opportunities for smart investors.
Rising interest rates might also mean that VA home loans may be more accessible to veterans now than they were with very low interest rates, Vultaggio said. Lenders want to be able to assist veterans, but it is critical to ensure you have all necessary paperwork, such as DD-214 forms, to be sure to properly qualify.
BGRS is a global leader in relocation and talent mobility services. BGRS provides relocation services to many federal agencies, corporations, and foreign governments. BGRS also provides thought leadership on a variety of topics from government relocation and household goods to commercial moving and storage. Tucker serves as a Vice President specializing in linking relocation issues to government workforce issues.
Tucker noted that there is a lot of regional variation in the real estate market. While urban areas remain especially competitive and prices have remained high, suburban and rural markets are softening up prices in reaction to inflation, Tucker observed.
A significant challenge in more rural areas is availability of adequate housing stock, according to Tucker. For federal agencies in law enforcement or land management, transferees may have few housing options in their new duty stations, requiring more extensive use of temporary quarters or living farther from a workplace location.
The guests also discussed how the COVID-19 pandemic transformed the real estate industry in nearly every way. Home inspections were digitized or waived. Wet signatures were largely replaced with validated electronic signatures. Virtual appraisals were introduced. Technology has made the overall process for consumers more streamlined and less paper intensive. According to Tucker, the pandemic provided a strong “reminder we need to take a look at our own operations and keep them fresh.”
Luckman provided advice for listeners considering purchasing property – get preapproved, establish a good budget, set aside emergency funds in reserve. “If you can do all of those things, regardless of where things are with interest rates, you’re setting yourself up for home ownership,” said Luckman, “You can always refinance for a better rate later when conditions improve.”
“Let’s put this in perspective – you’re dating your interest rate, but you’re marrying your home,” Tucker added.
You can stream the show online anytime via the Federal News Network app and listen to the FEDtalk on all major podcasting platforms. FEDtalk is a live talk show produced by Shaw Bransford & Roth P.C., a federal employment law firm. Bringing you the insider’s perspective from leaders in the federal community since 1993.
FEDtalk is sponsored by Blue Cross Blue Shield FEP Dental. Members get fully-covered, in-network preventive care, including up to three covered cleanings a year, plus no deductibles for in-network services, like fillings and root canals. Visit bcbsfepdental.com to learn more.
You can stream the show online anytime via the Federal News Network app and listen to the FEDtalk on all major podcasting platforms. FEDtalk is a live talk show produced by Shaw Bransford & Roth P.C., a federal employment law firm. Bringing you the insider’s perspective from leaders in the federal community since 1993.
FEDtalk is sponsored by Blue Cross Blue Shield FEP Dental. Members get fully-covered, in-network preventive care, including up to three covered cleanings a year, plus no deductibles for in-network services, like fillings and root canals. Visit bcbsfepdental.com to learn more.
