Gratitude… it’s an everyday attitude…
By Rich Shafritz & Doug Dean
We all just finished celebrating Thanksgiving; shortly, many will be celebrating Christmas, Hanukah, or Kwanzaa, and, before we know it, the New Year is around the corner. These, like many holidays, are times of reflection, celebration, appreciation, and it’s when most of us really try to express gratitude. But gratitude doesn’t have to be around the holidays. It’s something to express everyday both personally and professionally.
Like you, we are so grateful for our friends, family, staff, the many “friends of the firm” and every meaningful relationship in our lives, including each other.
But while it’s easy to feel grateful for the people in our lives, it’s important to find gratitude in everything. We thought we would start by finding gratitude in the future! We are so optimistic for the future and we thought we would share some exciting news to get everyone “in real estate” bullish about the future and grateful for tomorrow.
- Millennials are bullish about homeownership and unfazed by rising rates! According to an article in National Mortgage Press, Millennial statistics for home purchases are up year over year, and, ‘ “Despite rising interest rates, Millennials are still looking to buy homes,” said Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae.’ Source: National Mortgage News article 11/14/18 by Phil Hall – Millennials Nonplussed by Rising Interest Rates
Let’s be grateful that our next generation are bullish on homeownership! With those who were born from 1981-1996 excited about owning homes, starter homes will sell and when starter homes sell, the move ups will sell and the market will continue to grow! Also, their excitement means the dream of homeownership is alive and well and will “drip down to the post-millennial generation.
- Let’s be grateful for the future in Georgia and major metro Atlanta area. Several statistics suggest we all have much to be optimistic and thankful for including:
- Georgia’s population growth at greater than 1% make our state one of the fastest growing in the country in recent history and into the future! Source: http://worldpopulationreview.com/states/georgia-population/ Growth in population, much of which is in Metro Atlanta, where many of us are located, means more people purchasing homes, more financing opportunities, closing etc., compared to the rest of the country! We are definitely grateful that Georgia is expanding and not contracting as a state in population!
- Unemployment is down from a very low of 4.5% October 2017 to 3.6% in Georgia to 10/18.Source: Georgia Department of Labor – When unemployment is low, more people are financially able to buy homes and qualify for mortgages. When unemployment is historically low, employers are forced to pay more for qualified employees and that means they can afford more often in spite of rising rates.
- Georgia boasts 17 Fortune 500 company headquarters as of 2018, making it tied for 11thin the US (Fortune Magazine). Atlanta has been described as “the Silicon Valley of the South and is recognized as #15 out of top 25 cities for small business and a top 20 city for start-ups! And CNBC ranked Georgia 7thfor business! Additionally, GA Governor Deal’s office announced that Georgia has been named the top state for business for the fifth straight year by Area Development (a leading site selection and planning publication). If you want to grow, be where the growth, business and innovation are. Could we be any more excited?! Sources: https://www.cnbc.com/2018/08/29/best-cities-for-start-ups.htmland https://www.allongeorgia.com/georgia-business/5-years-in-a-row-georgia-ranked-no-1-state-to-do-business/
- Not to mention I am grateful that according to the above site, despite the growth and success of our state and Metro area, we are still a good buy coming in as the 9thmost affordable state in the country.
- Finally, for this article… Here’s something (counterintuitive) we are grateful for … rising rates!Rising rates mean many things….
- Fence sitters might be persuaded to purchase (or sell).
- It will be time for both lenders and agents to get back to “selling” the alternative programs which for many will be just what they need. Examples include 5/1, 7/1 and 10/1 ARM programs which will give homebuyers some stability while providing a lower rate to homebuyers and borrowers. Not to mention, Non-QM will broaden a market for both.
- What goes up must go down. Loan officers (which one of us once was … Rich from 1991 to 2001, including stints in residential and commercial loans) like “refi booms” which don’t occur when rates are flat. With historically low rates the likelihood of them going down further was remote. So when we have an increase in rates, the cycle of a slowed economy will lead to reduced rates and the next boom!
In summary, be grateful for the little things, the big things, the people in your life and the future… one we hope to share with you often and soon!