DURABILITY TESTS FOLDING IT 200,000 TIMES.
200,000 TIMES. NO WORD ON WHEN IT MIGHT BE
AVAILABLE IN THE U.S.
>>> MORTGAGE INTEREST RATES
HAVE JUMPED TO A SEVEN YEAR
HIGH, MAKING IT TRICKIER FOR
BUYERS TO KNOW HOW TO NAVIGATE
THE TWIN CITIES MARKET.
A REAL ESTATE EXPERT IS HERE TO
GIVE US PERSPECTIVE FOR BUYERS
AND SELLERS.
AND SELLERS. GOOD TO SEE YOU.
IS IT SHIFTING FROM THE BUYERS'
MARKET?
MARKET?
MARKET? TELL US WHAT THE SHIFT IS.
WHAT'S TAKING PLACE?
>> THE MARKET IS DEFINITELY
SHIFTING.
SHIFTING.
SHIFTING. WHAT'S HAPPENING IS MORE HOUSES
ARE COMING ON THE MARKET.
AND INTEREST RATES ARE AT A
SEVEN YEAR HIGH.
BUT HISTORICALLY, THE RATES ARE
STILL REALLY LOW.
INVENTORY IS STARTING TO RISE
AND RATES ARE GOING UP.
AND MOST HOME BUYERS PURCHASE
ON PAYMENT.
ON PAYMENT. IT IS MORE EXPENSIVE TO
PURCHASE A HOME.
>> TALK ABOUT THE INTEREST
RATES, THE SHIFT WHERE SELLERS
WERE ABLE TO COMMAND MULTIPLE
OFFERS.
OFFERS.
OFFERS. NOW BUYERS HAVE MORE CHOICE.
WHAT'S THE IMPACT WITH THE
SEVEN YEAR HIGH?
ARE WE STILL NOT AT A FAVORABLE
INTEREST RATE?
INTEREST RATE? >> RATES ARE HISTORICALLY
REALLY LOW BUT THE CHANGE IN
RATE HAS MADE A SIGNIFICANT
DIFFERENCE IN WHAT THE ACTUAL
PAYMENT IS.
PAYMENT IS. IF YOU LOOK AT AN AMORTIZATION
SCHEDULE.
SCHEDULE.
SCHEDULE. IT MAKES A BIG DIFFERENCE IN
THE PAYMENT.
THE PAYMENT. >> YOU'RE SEEING WITH
MILLENNIALS.
MILLENNIALS. THERE HAS BEEN A CHANGE IN THE
KINDS OF HOMES THAT THEY ARE
LOOKING AT AND BUYING.
STARTER HOMES, THAT PRICE RANGE
IS WHAT?
IS WHAT?
IS WHAT? >> $200,000 IS A STARTER HOME
IN THE TWIN CITIES MARKET.
BECAUSE OF THE RISING INTEREST
RATES, WE SEE MILLENNIALS
SKIPPING THE STARTER HOME AND
GOING FOR A HOME THAT'S MORE IN
PRICE.
PRICE.
PRICE. THEY CAN LOCK INTO THE LOWER
INTEREST RATE FOR THE LIFE OF
THE LOAN.
THE LOAN.
THE LOAN. >> SO ARE THEY SAVING FOR THE
DOWN PAYMENT?
DOWN PAYMENT? >> THEY ARE NOT PURCHASING
HOMES UNTIL THEY ARE FURTHER
ALONG.
ALONG.
ALONG. WHETHER THEY'RE MOVING BACK IN
WITH PARENTS TO PAY DOWN
STUDENT LOANS.
STUDENT LOANS. THEY ARE LOOKING FAR HOME
THAT'S A BIT MORE EXPENSIVE
BECAUSE THEY WANT TO LOCK THE
INTEREST RATE FOR THE LIFE OF
THE LOAN.
THE LOAN.
THE LOAN. >> LET'S TALK ABOUT ADVICE YOU
GIVE FOR BUYERS AND SELLERS.
>> THE CRITICAL THING WHEN
YOU'RE SELLING IS IT HAS TO
LOOK RIGHT.
LOOK RIGHT. STAGING IT PERFECTLY.
YOU HAVE TO WIN THE ONLINE
BEAUTY PAGEANT.
BEAUTY PAGEANT. 90% OF BUYERS ARE LOOKING FOR
HOMES ONLINE.
HOMES ONLINE. IT HAS TO STAND OUT, ESPECIALLY
AS INVENTORY IS ON THE RISE.
IT'S CRITICAL THAT YOUR HOME
LOOKS THE BEST.
>> AND FOR BUYERS?
>> WHEN YOU'RE LOOKING FAR
PROPERTY.
PROPERTY.
PROPERTY. FOCUS ON WHAT THE PAYMENT IS AT
THE DIFFERENT INTEREST RATES.
WHEN RATES ARE ON THE RISE,
YOUR PAYMENT COULD BE CHANGING
AND IF YOU'RE NOT REFRESHING
YOUR PRE-APPROVAL LETTER, YOU
DON'T EVEN KNOW THAT YOUR
PAYMENT IS CHANGING.
>> AND THAT